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On July 9th, The Nasdaq Stock Market® began implementation
of SuperSoesSM, their
new primary order execution system. While the initial rollout only
affects 18 securities, SuperSoes will soon be in use for all Nasdaq
National Market® (NNM) Securities. SuperSoes, which will eventually
replace Nasdaq's SOES order delivery system, is being rolled out
in unison with changes to the SelectNet® order routing system.
While many traders may notice no change in their trading or executions,
there are some key items to note regarding the SuperSoes transition:
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The changes apply to NNM
securities only - Nasdaq SmallCap stocks are not affected. |
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SuperSoes is active during
regular market hours, from 9:30 to 4pm EST; Pre and Post market
session order routing and execution remains unchanged. |
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The maximum order size
for auto-execution was raised to 999,999 shares. SOES tier limits
no longer apply. |
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Directed orders were eliminated. |
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The 17-second interval
delay between executions against the same Market Maker at the
same price level will be reduced to a system minimum of "zero"
seconds for all NNM securities ("zero" seconds is
approximately .8 seconds processing time). This is pending Securities
and Exchange Commission (SEC) approval. |
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The system is used for
all order types; customers, broker-dealers and market makers
all trade through SuperSoes. |
At the same time, SelectNet was updated to a non-liability order
delivery and negotiation system, through the addition of an 'Over-Sized
Order Requirement'. This new system no longer allows preferenced
orders to be sent to Market Makers unless the orders are at least
100 shares greater than the Market Maker's quote size. In other
words, if you send an order preferenced to a Market Maker at (or
under) their displayed quote size, your order is automatically rejected.
Two exceptions to this rule exist: Orders directed to an ECN, and
orders to and from UTP specialists*.
Nasdaq expects that implementation of SuperSoes and the changes in
SelectNet will help improve the speed of executions and increase access
to the full depth of a security's trading interest. The implementation
schedule is following a phase-in approach with two pilot periods,
followed by full implementation.
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The first pilot period,
which will include 20 securities (including two test stocks),
began on July 9, 2001. |
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The second pilot period,
which will include an additional 80 securities for a total of
100 securities (including test stocks), began on July 16, 2001. |
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Full implementation began
on July 30, 2001, and will include all Nasdaq National Market
(NNM) securities. |
The full list of pilot securities to be phased in has not yet
been determined, but will be published in advance of implementation.
The above dates may also be changed. If you would like more information
on SuperSoes and the SelectNet changes, please visit the links
below,
or call our Customer Support department at 914-422-2966 or toll-free
at 1-800-424-3934.
http://www.nasdaqtrader.com/trader/hottopics/supersoes_hottopics.stm
http://www.nasdaqtrader.com/trader/hottopics/ssoesenhancements.pdf
http://www.nasdaqtrader.com/trader/hottopics/ssoesfactsheet.pdf
http://www.nasdaqtrader.com/trader/hottopics/supersoesfaqs.stm
* "UTP Specialist"
means a broker/dealer registered as a specialist in Nasdaq securities
pursuant to the rules of an exchange that is a signatory to the
Joint Self-Regulatory Organization Plan Governing the Collection,
Consolidation and Dissemination Of Quotation and Transaction Information
For Exchange-Listed Nasdaq/National Market System Securities Traded
On Exchanges On An Unlisted Trading Privilege Basis ("Nasdaq/
NMS/UTP Plan").
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