FOCUS-Nasdaq launches European
exchange in London
(adds Gordon Brown comments)
By Elaine Hardcastle
LONDON, Nov 5 (Reuters) - Nasdaq, the electronic U.S. stock
market which is home to some of the most highly prized U.S. technology companies, said on Friday it
plans to launch a similar pan-European exchange based in London.
Nasdaq-Europe, which hopes to attract some of the region's fastest growing companies, won
enthusiastic support from the UK government.
The new stock market, which will embrace new and old techniques of an electronic order book and
traditional market makers, is scheduled to open for business in the fourth quarter of 2000.
The National Association of Securities Dealers, Nasdaq's parent, will be joined by Softbank Corp of
Japan , Rupert Murdoch's News Corporation's (Australia:NCP.AX - news) venture capital epartners
and Vivendi's venture capital fund Viventures in funding the new exchange.
Nasdaq said the market will offer European investors an Internet-accessible, high performance,
low-cost trading platform linked on a global basis with Nasdaq markets in the U.S. and Asia. In June,
Nasdaq said it was also setting up a sibling market in Tokyo in 2001.
''Nasdaq-Europe is an important step in creating an electronic global stock market for the benefit of
companies and investors around the world,'' said Frank Zarb, chairman and chief executive officer of
the NASD, in a statement.
''Like its counterparts in the U.S. and Asia we expect Nasdaq-Europe to be the IPO market of choice
and an important contributor to job creation and economic growth for the region.''
Nasdaq has recently been promoting its image in Britain through television advertising. It will be a
powerful competitor to Europe's existing technology markets.
COMPETITION FOR TECHMARK
The news comes just one day after the London Stock Exchange launched its own technology index
techMARK to ward off the competition. Germany's Neuer Markt is already successful in attracting
fast growing companies while the Brussels-based pan-European stock forum Easdaq is still struggling
with liquidity problems.
The London Stock Exchange is unlikely to welcome more competition but companies are likely to
benefit from cheaper and easier access to sources of investment.
Nasdaq's decision to enter Europe may also encourage speedier co-operation between the European
markets. Six exchanges agreed last year to facilitate Europe-wide trading include London's LSE and
Germany's Deutsche Boerse, but they have not yet created a common trading platform.
BROWN HAPPY
UK Chancellor of the Exchequer Gordon Brown said Nasdaq's choice of London was excellent news
for the city and the economy.
''Nasdaq's decision to locate its European exchange here represents a massive vote of confidence in
the City,'' the Chancellor said in a statement.
''Nasdaq's presence here will be good for the wider economy too, not just in the UK but Europe as a
whole. Job creation and economic growth depend on efficient capital markets channelling funds to
businesses to finance their expansion. This is more than ever true in the Internet economy.''
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