Super Montage SEC vote today??

Discussion in 'Order Execution' started by qazmax, Aug 27, 2002.

  1. qazmax


    Is the SEC voting on the ADF listed side today (8/27/02)? It is supposed to be the final hurdle for the release of SM.

    Anyone heard anything?

  2. I just read the Washington Post business section report on the SEC's approval of SM. Must have been a handout from Nasdaq PR department. According to this, SM will be a big benefit for investors because they can now see more liquidity and there will be less volatility and more transparency. Evil ECN's were against it because they would lose the ability to hide orders. Total nonsense. The fix has been in on this for a long time, I guess. Get ready to bend over and take it.
  3. yep, another BOHICA.
  4. def

    def Sponsor

    In case you are interested in the full story with prospective dates:

    Nasdaq Wins Final Approval to Start SuperMontage

    Washington, Aug. 28 (Bloomberg) -- The Nasdaq Stock Market
    won final approval from regulators to start its new SuperMontage
    trading system within the next six weeks.
    The Securities and Exchange Commission unanimously approved
    letting the market begin using SuperMontage on either Sept. 6 or
    Oct. 11. The start date will depend on whether any electronic
    trading networks, known as ECNs, sign up in the next nine days for
    a computer display system to post prices at which their customers
    are willing to buy and sell stocks.
    Nasdaq built SuperMontage to win back business from ECNs,
    which have siphoned off trades from the second-biggest U.S. stock
    market, luring away almost half of the daily trading in Nasdaq
    shares by offering anonymous transactions and lower costs.
    SuperMontage will offer similar features.
    ``We expect to see an increase in Nasdaq's role in trading of
    Nasdaq stocks because of SuperMontage,'' said Dean Furbush, who
    oversees trading systems at the stock market. ``I'm so pleased we
    can finally pull this thing out of the garage and take it for a
    Nasdaq's new system has been running test trades for several
    months and was deemed ready for real trading by the Nasdaq staff
    in late July. As part of a compromise, the SEC voted on July 26 to
    establish an Alternative Display Facility, or ADF, a computer
    system that ECNs could use as an alternative to SuperMontage.

    ECNs Registrations

    To date, only one electronic trading network, Bloomberg
    Tradebook, has said it will register to use the alternative
    display facility. That may have been in part because registration
    required that ECNs commit to using the facility. Misrepresenting
    their intention carried criminal penalties, a stipulation that the
    SEC removed today, Peterson said.
    Bloomberg Tradebook, an electronic system that competes with
    ECNs, is owned by Bloomberg LP, which is also the parent of
    Bloomberg News.
    If no other trading systems sign up for the facility within
    five business days of when the new certification will be
    available, SuperMontage can begin. That would put the start-up
    date as early as Sept. 6. In that case, Nasdaq's Furbush said,
    SuperMontage would begin on Sept. 17, so as not to start the week
    of the anniversary of the terrorist attacks on the World Trade
    If an electronic network does sign the certification saying
    it intends to use the facility, SuperMontage can start on Oct. 11,
    75 days after the original July 26 regulatory approval of ADF.
    The facility is an electronic bulletin board where ECNs and
    Nasdaq dealers can post prices at which their customers are
    willing to buy and sell stock. For the first three months, posting
    prices in the system will be free. Unlike SuperMontage, the
    facility does not allow customers to execute trades.
    Nasdaq's parent, the National Association of Securities
    Dealers, will run the facility. The Nasdaq Stock Market is in the
    process of converting from a mutual owned by its members to a
    publicly held company.

    --Monique Wise in New York (212) 318-2608 or,
    with reporting by Vicky Stamas in Washington. Editor: Parry,
    Mirabella, Serafino.