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To: TFF who started this subject	7/22/2002 6:15:32 AM
From: supertip	of 12617

Nasdaq's Supermontage May Face Delay As SEC Approval Lags Raul Gallegos The Nasdaq Stock Market may delay the rollout of its much anticipated SuperMontage trading system because some order management vendors and other market participants are not ready and the Securities and Exchange Commission has not yet approved the Alternative Display Facility (ADF), an alternative to the Nasdaq system. The SEC requires a competing system to exist before giving the nod to launch SuperMontage. How much longer the system could be delayed is uncertain and will depend on the viability of the ADF. Observers expect the SEC to ask for changes to the ADF that could take days or weeks to solve, but any major structural changes could conceivably put off SuperMontage for months. Michael DeMeo, spokesman for Nasdaq, said market participants are working on some glitches but insisted that Nasdaq hopes to go live with the system on July 31. Nevertheless, DeMeo conceded that such a date still hinges on approval of the ADF. John Heine, spokesman for the SEC, could not be reached for comment. A delay could leave as many as 500 market participants waiting to trade through the new system. Nasdaq has invested $107 million in developing SuperMontage; DeMeo said there were no figures available to accurately gauge the cost of a postponement. However, it is clear to many that SuperMontage is the system that Nasdaq sees as crucial to its plans to become an exchange. Nasdaq officials plan to begin trading test stocks on July 29 as a final trial before launching the system by the end of the month. But trial participants say some order management firms have experienced glitches during early tests conducted in the past few weeks. For Nasdaq it is imperative that order management firms are ready to hit the ground running. DeMeo acknowledged that these trials have yielded "individual glitches and technology problems" that are already being worked on by vendors and other participants. But he added, "Nasdaq itself is ready. [A possible delay] for the most part is out of our hands." Nasdaq officials have reportedly warned traders of the possible problem but have also approached the SEC and the NASD to push for an ADF approval, said DeMeo.

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