Nasdaq announces SuperMontage pricing

New York: The Nasdaq Stock Market (www.nasdaq.com) has announced the pricing schedule for SuperMontage, which was filed with the Securities and Exchange Commission (SEC) last week. The pricing will take effect with the phased launch of SuperMontage in late July 2002.

SuperMontage is a reinvention of Nasdaq and will significantly improve the overall market quality and investor protection. The new trading system will provide traders and investors alike with more information and a more efficient means to act on that information. With the new SuperMontage platform, quotes and orders will go through a single-computer architecture, adding speed and efficiency to the market.

Highlights of the SuperMontage pricing schedule include (full pricing schedule attached):
  • Same execution fees as for SuperSoes:

o $0.002 per share to access liquidity

o $0.001 per share liquidity-provider rebate

  • No charge for internalising (i.e., self-preferencing) in SuperMontage at the best bid and offer
  • No order-entry fee for non-directed orders, eliminating the $0.10 SuperSoes order-entry fee
  • Reduction of cancellation fee from $0.25 to $0.01 for non-directed and preferenced orders.

“SuperMontage pricing will be even more competitive than current SuperSoes pricing,“ says Nasdaq Transaction Services executive vice-president Dean Furbush. “We're confident this aggressive pricing package will underline the fact that SuperMontage will be the best place for market participants' and customers' orders.“

“We are well-positioned to launch SuperMontage this summer,“ says Furbush. “We continue to receive overwhelming interest and support for the new trading system and are working closely with firms to ensure a smooth rollout.“

SuperMontage will replace SuperSoes, which was implemented in July 2001. Introduction of that system was a sea change in how market participants interact with Nasdaq to quote and trade. SuperSoes has made accessing liquidity more efficient, allowing participants to access large blocks of shares, automatically, in one order.

In 2001, Nasdaq completed the design, coding and programming of SuperMontage. In January 2002, quality control testing began and, most recently, the first round of internal user testing was successfully completed. External customer testing will begin this month.

To help market participants better prepare for the launch of SuperMontage from a technology perspective, Nasdaq has made the production versions of both the computer-to-computer interface (CTCI) and application programming interface (API) specifications for SuperMontage available online. These software specifications allow firms to connect their technology infrastructure to Nasdaq's market infrastructure and SuperMontage.

SuperMontage pricing schedule

Non-directed and preferenced orders
Order entry Non-directed: No charge
Preferenced: $0.02 per order (excluding self-preferencing)
Order execution Non-directed/preferenced: $0.002 per share executed (entering party only)1

Non-directed or preferenced executed against quote/order of entering party (internalised): No charge
Liquidity-provider rebate $0.001 per share rebate to members that do not charge an access fee on SuperMontage executions (executing party only) 2
Cancellation3 $0.01 per Cancel (cancelling party only)

1 The order execution charge is reduced to $0.001 per share if the executing firm charges an access fee on SuperMontage executions.

2 No rebate to members that charge an access fee on SuperMontage executions.

3 Includes cancel portion of immediate-or-cancel orders.

Directed orders (liability and non-liability orders)
Order entry $0.10 per order
Order execution $0.0025 per share executed (entering party only)
Cancellation $0.10 per cancel (cancelling party only)
 
Quotes/orders and summary quotes (i.e. quotes and non-marketable orders)
Entry No charge
Change caused by the SuperMontage system (price or size) No charge
Cancel/replace at price with size enhancement No charge
Cancel/replace at price with size reduction $0.01 per cancel/replace
Cancel/replace with price change $0.01 per cancel/replace
Cancellation $0.01 per cancel
Order purge $0.0075 per order purged

Please note that market data revenue will continue to be shared in SuperMontage. However, that revenue sharing is outside of the scope of Nasdaq's recent pricing filing with the SEC.