Does anyone think they will or not? My hope is that they break away from Nasdaq once and for all now that they are basically ArcaEx. Any thoughts?
On the REDI website , there is information on the integration of ARCA & REDI . I have no information on Supermontage, but I doubt that Goldman would not allow REDI-ARCA to have access to Supermontage. ISLAND will participate in Supermontage and all ISLD subscribers will have access to SuperMontage , see www.isld.com/prodserv/supermontage/index.asp . It will be interesting to see if the ECN mergers make NASDAQ a less "fragmented" marketplace . I believe the REDI-ARCA merger and REDI+ software will be continue to be one of the best all-in-one order execution systems. REDI+ will now have access to new futures products on the CME & Globex. I would like to caution all REDI+ users that REDI+ is very RAM intensive . Our in house techs tell me that it's best to have 256 Meg Ram for REDI+ and 512 Meg for running multiple platforms(AT & REDI+ etc). Many "slowness" and "freeze up" problems are related to RAM. Gene Weissman Lieber & Weissman Sec., LLC gweissman@stocktrade.net
I have heard that Island is backing away from SM because of the fees associated with Nasdaq and now with the merger with Instinet? Thoughts?
hmap1, Good observation. I don't speculate about the SuperMontage and I'm only reffering to the info on ISLAND's website. I would not be suprised of Instinet & Island combined crossing networks(after the merger) since the combining of the networks would save big dollars. Most traders don't understand the huge expense, infrastructure , maint. etc. of running a large ECN like ISLAND or INCA. Just as we see firms merge, the merging of ECN's will "centralize" the NASDAQ marketplace. I was given a tour of the ISLD ECN three years ago and it is pretty amazing to see their computer banks, servers & infrastructure in the basement of a office building( for security-I won't mention where the ECN is located). I think ISLANDS outstanding customer service for the small broker and customer matched with Instinets institutional customer base is a good match for the industry. Gene Weissman Lieber & Weissman Sec., LLC gweissman@stocktrade.net
With the Arca and Redi merger close to completion and the ArcaEx phasing in securities, I believe the goal is to move away from Nasdaq and provide an alternative pool of liquidity to compete with the floor based exchanges and the OTC market place. For more information on the Arca/Redi merger I have included some information from Arca's website: "ArchipelagoSM and REDIBook® successfully closed on our merger on March 15th. We are currently working to seamlessly combine the two fastest growing pools of liquidity into one fully integrated trading platform. We are merging the best of both systems to bring you more choices in order types, a more robust, enhanced matching engine and added liquidity. This integration update summarizes the plan to combine our systems and introduces the features and enhancements of the combined Electronic Communications Network (ECN). Today both ECN platforms trade independently of each other. The integration of the Nasdaq® order books and trading systems Archipelago and REDIBook currently operate is scheduled to begin in late June and be completed by late July. All OTC securities are expected to be migrated into a single book and one platform under the tentative schedule below. Listed stocks will be combined using a separate schedule that will be announced mid summer. Final notification for each migration will be provided prior to the actual consolidation date. Nasdaq Symbols Proposed Date One symbol Zomax Inc. (ZOMX) 7/1/02 All Nasdaq symbols starting with Z 7/8/02 Add Yahoo (YHOO) 7/12/02 All Nasdaq symbols starting with O-Y 7/18/02 All Nasdaq symbols starting with F-N 7/22/02 All Nasdaq symbols starting with A-E 7/26/02 As symbols are merged, you will no longer see the "REDI" Market Participant Identifier (MPID) on Nasdaq Level 2 screens, in the Archipelago Book on the web, in Archipelago FIX Book feeds or through other book data providers. The orders will all be consolidated in the "ARCA" MPID."
It seems to me eventually all the mergers are going to result in scalpers having to worry less and less about hotkeys as things progress. At least that is what I hope. However I could be wrong now most ecn's have reserve functions, the ability to hide orders, etc and there is no telling what functionality is down the road. I just really don't have time to pull down those little drop down boxes and adjust those setting manually. "Lets see, I want my share size to be 600, and and I don't want to pay more than the offer +.03, and....." Right now the biggest problem some scalpers have is they have a hot key for 4-5 ecn's, another for supersoes, and then a zillion other buttons to sweep bids, offers, offer out, bid out, bid out a set fraction above or below the inside bid/offer, etc, etc. Where as on the NYSE you can focus more on the trade instead of the implementation of the trade. All jokes aside having been a scalper who has switched platforms a few times, it is a real pain in the ass when for a year F1 key has been load island bid and shift-F1 has been Island FOC or whatever and all of a sudden something has to be slightly different and it screws up the entire layout that has been soaked into your mind over 1000's of trades. I'm all for less hotkeys these days. I see these NYSE traders using a mouse to trade and it still blows my mind.
It seems to me eventually all the mergers are going to result in scalpers having to worry less and less about hotkeys as things progress. At least that is what I hope. Avalanche, Very True! REDI, for example is proactive and REDI+ has reserve functions for NASDAQ/AMEX/NYSE ,so hot keys are not really as effective as they were at one time(add in the .01 spreads). A more centralized marketplace will probably help in the long run. Have a great 4th to all!! Gene Weissman Lieber & Weissman Sec., LLC gweissman@stocktrade.net
ARCA (which is Redi now) has released information bashing the SuperMontage. This however does not mean they will not participate. In fact, it is my opinion they definitely will participate in SM. They have done the testing required for the SM link. More importantly it is ARCA's style to be able to route to every market place. If they cannot access SM they will look really bad, and lose market share. They do hope SM fails however... ISLD has announced it will be using SuperMontage now via a "Switch" line. You shold ask your brokerage if they have this set up. ISLD will not be an Island unto itself anymore. This is available when SM is available. Of course INCA (ISLD) hope SM will fail too.... so they do not have to pass on Nasdaq fees for orders executed there. The big question is ... what will the market place look like in 3 years. Just ARCAex perhaps? Who will be the ultimate consolidaor of listed, Nasdaq securities with the electronic access customers demand? ARCA seems to be in the lead here.