ISLD's Switch

Discussion in 'Order Execution' started by Vinny1, May 21, 2002.

  1. Once SuperMontage is launched, Island will offer its subscribers a new, optional, service
    called the Switch. This service provides subscribers with a single destination for all their
    order flow in Nasdaq securities. Each order interacts with the full liquidity within the
    Island book and on Nasdaq's SuperMontage system, ensuring excellent execution
    quality. The Switch is a fast, efficient, reliable, and cost effective alternative to traditional
    order routing systems. Using existing connections and protocols (OUCH or FIX), Island
    subscribers can send both marketable and non-marketable orders into the Switch. Using
    a simple and deterministic set of rules, the Switch picks the best path for each order
    based on the current market.

    Non-marketable orders are forwarded directly to the Island ECN's limit order book where
    they are represented in the national quote and can interact with other orders coming
    into the ECN from subscribers and from SuperMontage. Marketable orders are
    "pre-scanned" over the Island book and then immediately forwarded onto Nasdaq's
    SuperMontage system. This gives them an opportunity to get an instant, low-cost fill
    with possible price improvement on Island but still guarantees an execution at the
    current Nasdaq inside market in cases where a match on Island is not immediately
  2. Sounds like Island is going head 2 head with nasdaq. Sounds like Island will probably win, too. :)
  3. I assume from reading the above that ISLD will also interact with other ecn's and market makers,just like ARCA does now. Does anyone know for sure?
  4. jwcrim


  5. jwcrim


    Does anyone know if you will be likely to experience longer than typical Island delays in SuperMontage before execution or cancellation takes place?

    Will (the unacceptable) 30 seconds still be the rule?

    Will the Switch have a real IOC option for SuperMontage? That means immediate not 30 seconds.
  6. as ISLD goes, there goes the market,

    these guys are pioneers, and they're serious about keeping their lead.

    good for them.

    let's hear it for less than a penny a share, say .0085 instead of .001, and actually drive out the competition...