SuperMontage Trading System 2025: Advanced Nasdaq Order Execution & Pricing

What Is SuperMontage?

SuperMontage is Nasdaq's cutting-edge, fully integrated order display and execution system designed exclusively for trading Nasdaq-listed securities. This platform revolutionizes trading by offering enhanced price transparency and execution efficiency, empowering brokers to serve their clients better while providing investors with improved pricing.

Nasdaq has combined its electronic communication network (ECN) with SuperMontage and INET (a fusion of Instinet ECN and Island ECN) to create the comprehensive NASDAQ Market Center Execution System, delivering seamless market operations.

Key Highlights

• SuperMontage is an automated, integrated order quoting and execution system for Nasdaq stocks.
• Launched in 2002, it was among the first platforms to offer fast, low-cost executions with anonymity features.
• The system displays five levels of market depth, revealing liquidity across exchanges and ECNs.
• Currently, SuperMontage is a vital component of the broader NASDAQ Market Center Execution System.

How SuperMontage Operates

Replacing earlier systems like SOES and SuperSoes, SuperMontage enables firms to post multiple quotes and orders per security. Market makers can submit full or partial buy and sell interests anonymously or openly. The system processes over 5,000 transactions per second, offering unmatched speed and efficiency.

A standout feature is its five-level depth display, which shows available volumes at the best price and the next four price levels. For instance, if the highest bid is $10, SuperMontage reveals volumes at $10.00, $9.99, $9.98, $9.97, and $9.96, giving traders a clearer picture of near-term price movement potential.

Introduced in October 2002 after a $107 million investment, SuperMontage provides comprehensive market insights and liquidity visibility, capable of automatically executing orders up to 999,999 shares. This marked a significant technological leap for Nasdaq's market data and execution capabilities.

Traders can strategically list bids and offers at varying prices to maximize deal opportunities. For example, a trader selling 1,000 shares might offer 500 at $10.00, 300 at $10.25, and 200 at $10.50, increasing chances of successful transactions.

Anonymous Trading with SuperMontage

SuperMontage supports fully anonymous trading, allowing traders and brokers to place orders without revealing their identities to the market. Anonymity is preserved throughout the clearing and settlement process, enhancing privacy and fairness.

Key features include:

• Integration of a public limit order book with market maker quotes.
• Multiple quote entries by market makers and ECNs at single or various price levels.
• Option to display orders anonymously or by participant name.
• Aggregation of buy and sell interests across five price levels.
• Time-stamping of orders to maintain priority and order position.

These capabilities foster a more equitable trading environment, improving market quality and investor protection.

Note: As of December 2, 2022, INET refers to the combined Instinet and Island ECNs, not the Interbank Network for Electronic Transfer.

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