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In an asynchronous transfer mode (ATM) endnode a method is provided by which ATM cells can experience a small delay from the ATM layer to the PHY layer to transmission on the ATM network. Such an arrangement includes providing the endnode with an ATM layer, the ATM layer having a first-in-first-out (FIFO) queue for transmitting transmit ATM traffic, providing the endnode with a PHY layer, the PHY layer having a FIFO queue for receiving the transmit ATM traffic, providing an interface between the FIFO queue of the ATM layer and the FIFO queue of the PHY layer for the flow of the transmit ATM traffic, providing a signal in the ATM endnode, providing a state machine in the ATM endnode, the state machine monitoring the signal in the ATM endnode, stalling the transfer of the transmit ATM traffic from the FIFO of the ATM layer to the FIFO of the PHY layer over the interface when the signal and the state machine indicate that the FIFO of the PHY layer is full, and transmitting the transmit ATM traffic from the FIFO of the ATM layer to the FIFO of the PHY over the interface. By causing the ATM layer to generate/transfer a continuous stream of cells to the PHY layer, the method can provide cell time indications to allow the ATM layer to synchronize itself to the network.