Commentary

Anne Plested
Traders Magazine Online News

Bottlenecks Ahead

Anne Plested, head of Fidessa's EU Regulation Change programme, has written a short blog arguing that although we should be thankful that ESMA have taken a pragmatic approach to moving things along, more bottlenecks could appear in the future.

Traders Poll

Would you feel better if the Chicago Stock Exchange were purchased by U.S. firm or consortium rather than a foreign one?




Free Site Registration

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."