Chung and Chuwonganant (2009) find that SuperMontage
increased execution speeds, increased fill rates, and reduced realized spreads.
The new trading system, known as SuperMontage
, will aggregate quotes and orders providing access to more possible trades.
is a market platform capable of integrating global financial information into a single interface, while enveloping independent Internet trading networks into the Nasdaq fold.
Product examples include Thomsit P685, Pattex Supermontage
and Sista Solyplast SP 201.
In 2004, for example, NASDAQ's SuperMontage
executed only around 17 per cent of the trading volume in the companies listed on NASDAQ, while the NYSE executed 78 per cent of trading by volume in the companies listed on the NYSE.
3) The extensive delays in launching the SuperMontage
system, for example, were at least partially due to the time it took to get SEC approvals.
New features include free simulated trading accounts, free ECN depth of books, free news, enhanced order entry, vast order types, automated routing capabilities, SuperMontage
for exchange-listed securities, button trading and customizable order entry.
Market fragmentation can be an opportunity if investors have access to data from major liquidity sources like SuperMontage
and ECNs, combined with a set of data management tools to help control that information.
A spokesperson for NASDAQ has said that the agreement will enable the organisation to focus on core business systems such as the upcoming SuperMontage
At the core of its new exchange system will be Supermontage
, a system that -- if it lives up to its billing -- will display the five best bids and offers for every stock, allow users to specify three different kinds of orders and allow for anonymity for those placing orders, an important consideration for major traders.
In the United States, NASDAQ's SuperMontage
will increase the market's transparency by introducing a quasi-central limit order book in over-the-counter (OTC) stocks.
Direct connection" excludes orders sent through third parties, such as other ECNs, Nasdaq's SuperMontage
, or any other Exchange.