Investor's wiki

SuperMontage

SuperMontage

What Is a SuperMontage?

A SuperMontage (SM) is a completely integrated order display and execution system for the trading of Nasdaq-recorded securities. Nasdaq's SuperMontage trading system works with better prices for investors while allowing brokers to better serve their customers by giving increased transparency.

NASDAQ has now integrated its electronic communication network (ECN) system with different instruments, including SuperMontage and Interbank Network for Electronic Transfer (INET), to form an exhaustive system that came to be known as the NASDAQ Market Center Execution System.

How SuperMontage Works

SuperMontage is Nasdaq's completely integrated order entry and execution system which replaced before systems including the small order execution system (SOES) and SuperSoes. SuperMontage allows firms to list different quotes and orders for every security, and permits market makers to enter all or part of their buy and sell interest, regardless of different traders knowing their identity. In excess of 5,000 transactions each second can be handled by SuperMontage.

One of its most significant highlights is that it shows five levels of depth as opposed to just the best current price. For instance, on the off chance that the best price someone was able to buy a particular stock for was $10, the system would show the volume accessible for $10.00, $9.99, $9.98, $9.97, and $9.96, that is to say, the number of individuals that are needing to buy at every one of these prices. This information can assist investors and traders with assessing all the more precisely an instrument's close term price developments.

Nasdaq's SuperMontage trading platform was progressively carried out in October 2002. At a cost of $107 million to build, its technology offers the fullest accessible understanding into the market and accessible liquidity. The system can consequently execute orders of up to 999,999 shares. At the point when it was presented, SuperMontage addressed an immense leap for Nasdaq in what it can collect and how it displays that information.

In SuperMontage, traders can list offers and offers at different prices. For instance, expect that a trader has 1000 shares of a company ready to move. Utilizing SuperMontage, they can make an offer to sell each of the 500 shares at $10, 300 shares at $10.25, and the excess 200 shares at $10.50. By doing this, the traders' probability of finding bargains at mutually acceptable prices increments.

SuperMontage and Anonymous Trading

The SuperMontage allows for completely anonymous trading. This means that a trader/representative can place an order without different traders being familiar with their identity. During the whole clearing and settlement process, the order stays anonymous.

SuperMontage is the main stock market platform that:

  • Completely coordinates a public limit order book and market maker citations.
  • Allows market makers and ECNs to enter different quotes at single or numerous price levels.
  • Displays orders either anonymously or by name.
  • Shows aggregate investor buy and sell interest five levels deep.
  • Time-stamps individual orders to save position and priority.

Altogether, these highlights make a more pleasant, more level playing field for all market participants, expanding market quality and investor protection.

Features

  • The screen shows depth and liquidity across exchanges and ECNs in a given security.
  • Nasdaq's SuperMontage is an automated order quote and execution system for trading stocks.
  • Today, SuperMontage is part of a bigger set-up of trading instruments called the NASDAQ Market Center Execution System.
  • Sent off in 2002, it was among the primary completely integrated electronic trading platforms, giving low-cost and fast execution alongside secrecy highlights.