September 15, 2000

Jonathan Katz
U.S. Securities and Exchange Commission
450 5th St. NW
Washington D.C. 20549

RE: Release No. 34-42573; File No. SR-NASD-99-53

Dear Mr. Katz:

The Island ECN, Inc. ("Island") is pleased to again have the opportunity to comment on the NASD's Super Montage Proposal (the "Proposal"). The NASD, through its subsidiary Nasdaq, initially submitted the Proposal in November of 1999. The NASD has filed several amendments to the Proposal to modify or further clarify the original proposed rule filing. We have reviewed the Proposal and the subsequent amendments but have been unable to identify how Nasdaq proposes to provide transactions reports to market participants at the time of a match in the Nasdaq Order Display Facility ("NODF"). While we understand that Nasdaq desires a certain level of anonymity with respect to non-attributable orders, the Proposal and its related amendments do not discuss counter-party disclosure at time of execution. Similarly, the Proposal and its related amendments do not discuss the timing of counterparty disclosure for incoming SelectNet preferences from Nasdaq to order delivery participants such as ECNs.

The timing of the disclosure of a market participant's counterparty identity is an important component to the Proposal. In order for a market participant to monitor its intraday credit risk exposure, it is critical that the counter-party's identity be revealed at time of execution and not at 4:30 p.m. (end-of-day) on trade day.

Therefore, Island strongly believes that, regardless of whether the transaction is executed on a non-attributable basis (i.e., anonymous) in the NODF or delivered as a SelectNet preference to an order delivery participant, the NASD must identify the counter-party at time of execution. This is the only way that market participants will be able to manage counter-party risk without being dependent on Nasdaq.

This issue must be addressed and resolved by the NASD. Island thanks the Commission for its consideration.


Cameron Smith
General Counsel
The Island ECN