Commentary

Ronald Jordan
Traders Magazine Online News

Understanding Your Data is No Longer Optional

In this contributed article from Global Markets Advisory Group, the advisory discusses the importance of data and how organizations should augment existing skill sets and capabilities to add a data-focused perspective to their operating fabric.

Traders Poll

Do you expect SEC Chairman Jay Clayton to push for regulation in the cryptocurrency issuance and trading markets?

Yes

74%

No

5%

The CFTC will push for regulation

21%

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July 31, 2001

SuperSOES Begins to Transform Nasdaq

By Peter Chapman

Last month's successful debut of Super- SOES made negotiation a thing of the past for traders of 3,500 Nasdaq National Market System (NNMS) securities.

SuperSOES replaces the accept/decline functionality of SelectNet messaging with automatic executions, transforming the inter-dealer market into an order-driven agency marketplace.

Order-Driven Market

Another 1,500 stocks in the Nasdaq SmallCap Market are under consideration for SuperSOES trading as well, according to Nasdaq. The new trading regime, which eliminates dealer-to-dealer interaction, is the latest of many rule and systems changes since the mid-90s. These changes are reshaping Nasdaq trading.

"Nasdaq has gone from a purely quote-driven market to one with a mixture of quotes and orders [on ECNs] to a purely order-driven market," said Jim Toes, a director of Nasdaq trading at Merrill Lynch.

Before SuperSOES, a market maker quote was considered an invitation to trade. A dealer didn't have to disclose his entire trading interest. "Now, I'm no longer quoting $10, for example," said Toes. "I'm telling Nasdaq I am willing to pay $10 for a certain amount of shares."