Commentary

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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March 1, 2002

SuperMontage Alternative Coming

By Gregory Bresiger

The ADF, the alternative display facility that so many ECNs are depending on so they can bypass the coming SuperMontage, is on schedule and, "should begin operating by the end of the second quarter."

That's the word from a spokesman for the NASD. "We realize that many officials of trading firms are expecting that this will be on line at the same time as the SuperMontage so they will have someplace else to go. We are on schedule and expect to be operating on time," he added.

It is a critical issue for ECN officials. Many have charged that the SuperMontage is a plan that is designed to give new advantages to market makers, a group that is said to be loosing Nasdaq order flow to ECNs. ECNs have been gaining share and are now estimated by some to record about 50 percent of Nasdaq business. The ADF was mandated by the Securities and Exchange Commission as part of Nasdaq's step towards separating from the NASD and its application for stock exchange status.

Separately, Nasdaq is introducing four data feed services in tandem with SuperMontage: DepthView, which will provide the top five price levels and the aggregated size of each from SuperMontage; QuoteView, an overhauled Nasdaq Level 11 feed; PowerView, which will combine QuoteView and DepthView; and TotalView, which offers the first two services as well as other data. Nasdaq plans to phase in the new products with SuperMontage.