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
available.
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
available.
