The Next Generation Market Platform from NasdaqMORE TRANSPARENCY MORE ACCESS TO LIQUIDITY MORE STABLE TRADINGMORE TRANSPARENCY MORE ACCESS TO LIQUIDITY MORE STABLE TRADINGThe Next Generation Market Platform from NasdaqSUPERMONTAGETODAYQUOTES & ORDERSEXECUTEINDUSTRYMarketable/Non-Marketable Orders at Multiple PricesQuotes/Orders at Multiple PricesQUOTES & ORDERSEXECUTESingle Price QuotesQUOTESINDUSTRYSuperSoes MarketableOrdersAn ongoing series of stepped enhancementshave kept Nasdaq® performance at the forefrontof stock markets worldwide. The upcominginstallation of our next generation market plat-form, popularly known as SuperMontageSM,willtake Nasdaq performance to an even higher level.SuperMontage, a fully integrated order displayand execution system, will generate more access to liquidity for Nasdaq securities. WithSuperMontage, greater depth and breadth oforders will be available, and this ultimately could lead to a tempering of price volatility.How will these changes be effected? Today onNasdaq, a market maker’s best buy and sell quotation in each security is broadcast over avast network, making Nasdaq a highly transpar-ent marketplace.Buy and sell interest can be seenby all market participants—professional andindividual investors alike. Their view is about toget better.With SuperMontage, the display of orders will beexpanded for even more transparency andinvestor protection. More buyers’ and sellers’orders can be displayed, and investors will beable to see more of the orders that are availableto them. Market makers will have the ability toinput all or part of their buy and sell interest, byname or anonymously, and this buy and sellinterest will be available to view at five price levels—not just best price. Once entered into the montage, orders can be executed against elec-tronically almost instantaneously. With thiscombination of new features, market makers will have the flexibility to put more of what they have to buy or sell into the electronic montage,resulting in increased depth and breadth oforders for a company’s securities.Long-term, Nasdaq’s new market platform willroll out to Europe, Asia and beyond. The result?A seamless international market linking listedcompanies to major pools of capital worldwide.Greater depth of orders, and increased trans-parency will make for more comprehensive market intelligence and a smoother more stable market environment. These changes willafford the opportunity for in-depth real-timemonitoring of trading activity in individualstocks—valuable information for companieslooking for a deeper insight into how their stockis moving in the market.Simply stated, the purpose of securities markets is to bring buyers and sellers together, linking public companies to pools of capital. Since its inception in 1971, The Nasdaq Stock Market® has used technology to facilitate these connections. As technology has improved, Nasdaq has built these improvements into our market to create more, better and faster connections between buyers and sellers.Transparency, the ability to see, buy and sell orders for securities at multiple pricelevels, helps investors see more and gauge trends in the market—of criticalimportance for investors making decisionsabout purchasing a company’s stock.The Next Generation Market Platform from NasdaqMORE TRANSPARENCY MORE ACCESS TO LIQUIDITY MORE STABLE TRADINGSuperMontage will be the culmination of a series ofstepped enhancements to Nasdaq trading. Below isa summary of other recent and planned initiativesand their impact on Nasdaq listed securities.Lower Spreads—Decimal Pricing The move to decimal pricing, implemented in April2001, resulted in a dramatic reduction in spreadsfor stocks listed on Nasdaq. This means better pricesfor a company’s investors. Spreads decreased morethan 50% resulting in a weighted average spread ofless than 4 cents for Nasdaq stocks.Faster More Accurate Executions—SuperSoesSMAutomated TradingWith the ability to handle increased volume,SuperSoes represents a dramatic improvement inthe way liquidity is accessed for Nasdaq stocks.Since installation in August 2001, the market hasseen faster executions, higher order fill rates, andorders filled at market prices. SuperSoes allowsorders of all sizes to be executed automatically – inless than a second. This means more accuracy andmore reliability of quotes for investors.Price Improvement—Primex Bringing the best aspects of an auction marketmodel to Nasdaq’s electronic trading platform, theupcoming installation of the Primex AuctionSystem™ as a facility of Nasdaq will create oppor-tunities for investor orders to receive prices thatimprove on the displayed best bid and offer. To learn more about how SuperMontage and otherNasdaq initiatives are improving market performancelook under Hot Topics on www.nasdaqtrader.com.Better ways to trade for Nasdaq-listed Securities© Copyright 2001, The Nasdaq Stock Market, Inc. All Rights Reserved. 12/01The Nasdaq Stock Market and Nasdaq are registered service/trademarks and SuperSoes and SuperMontage are service/trademarks of The Nasdaq Stock Market, Inc. All other service/trademarks are properties of their respective owners. The Nasdaq Stock Market is an affiliate of the National Association of Securities Dealers,