Super Montage SEC vote today??
- Thread starter qazmax
- Start date
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.
def
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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
spin.''
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
Center.
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 mwise@bloomberg.net,
with reporting by Vicky Stamas in Washington. Editor: Parry,
Mirabella, Serafino.
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
spin.''
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
Center.
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 mwise@bloomberg.net,
with reporting by Vicky Stamas in Washington. Editor: Parry,
Mirabella, Serafino.