Island to participate in SuperMontage

Island EVP Andrew Goldman

hmm....am I just paranoid?

 

Supermontage... the end of transparency in level depth... 5 visible levels, ya got to be joking....

 

Would I still be able to hit island bid/offers directly (to avoid paying both the island and supermontage fees)? If this is not the case, that would really suck since every market maker would be in front of me in line if I decided to place a bid or offer. I'm pretty sure that you would still be able to do this though, and it would operate similar to the way LSPD does right now. Someone please clear this up for me...

 

The 5 levels are probably "value added" components.

 

Please, who said the island book was going away? And frankly, 5 levels deep is all that matters most of the time anyhow.

 

I believe Island is only participating with stocks from the American Stock Exchange and NYSE, not the NASD traded stocks. Island has also applied for Exchange status, so hopefully they can keep the competition going in the future.

I know the SuperMontage rules discriminated against the ECN's severely for equal access to order flow, but they may have solved that problem. Does anyone know if you will be able to post a limit order into the Island book and have it be seen by SuperMontage participants? I fear we won't be able to act like pseudo MM's any longer and be subject to wider spreads if this beast takes all the volume.

 

Now that ISLD is soon to be under the control of Supermontage, sitting on the bid is gonna be tough, since the MMs will get all the orders by shaving our prices to death (preventing us from executing) and benefitting from price priority... currently ISLD is a market unto itself, but it seems that soon ISLD traders will not be able trade with eachother... I hope I am mistaken, but this seems like its gonna be back to the bad old days of buy ask, sell bid... which is fine for liquid stocks, but which will be a killer for trading thinner stocks (since the spreads can be brutal on those)...

 

i'm not so sure about that. can't MM's can shave your market now (or anybody else for that matter) by bettering the NBBO.

 

No they can't "shave" you now, shaving in my book refers to sitting on the same price level and still be on front, even if you posted at a later time.

 

maybe i missed something here, does this mean price time priority will not be supported with supermontage? If it is, then how can they shave you per your definition.