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Tim Quast
Traders Magazine Online News

We're All HFTs Now

In this guest commentary, author Tim Quast looks back at the history of HFT and how the market has evolved to where many firms now fit the definition of high-frequency trader.

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January 1, 2002

Multiple Price Levels For SuperMontage

By Gregory Bresiger

Nasdaq's SuperMontage, which is slated to begin operations next summer, will have a five level pricing structure for its Quotation Dissemination Service Prime and ADAP fees, Nasdaq officials said.

"In meeting with people we found a lot of enthusiasm for a five-level system," Adena Friedman, senior vice president for data products at Nasdaq, told Traders Magazine.

"We found that offering more than three levels was widely supported by both the buyside and sellside," she added. "They believe that it would show more depth of market and five levels takes them a little further down so they understand where the liquidity for a stock is."

Friedman said the exact amount of the fees has yet to be determined. The Nasdaq board of directors, she said, will probably review that issue in January and might then approve a fee structure.

The board would then send it to the Securities and Exchange Commission for approval. Since these fees would be levied on non-members as well as Nasdaq members, the fee schedule would go to public comment.

Friedman said Nasdaq wants to have all fee schedules ready by the time the SuperMontage begins operations. Nasdaq was slated to begin quality testing in January and conduct user acceptance tests in April or May, Nasdaq officials said.