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To: 16yearcycle who wrote (62660)	6/15/1999 8:32:00 PM
From: Glenn D. Rudolph	Read Replies (1) \| Respond to of 164684

FOCUS-Nasdaq, Softbank to open Japan trading system (changes dateline, updates throughout, adds quotes from press conference) By Jennifer Westhoven NEW YORK, June 15 (Reuters) - The Nasdaq Stock Market said on Tuesday it was joining with Japanese Internet giant Softbank <9984.T> to create a sister electronic trading system in Japan, a deal that would mark the Nasdaq's first international expansion. The system, scheduled to be launched by the end of 2000, would extend trading hours for some Nasdaq stocks, and the plans drew fire from some Nasdaq members who oppose a longer trading day. The plan would also allow Japanese investors to trade Nasdaq's flagship high-technology stocks, including Microsoft Corp.<MSFT.O> , the world's leading software maker, and Intel Corp.<INTC.O> , the leader in semiconductors. Japanese start-up companies would also get a chance to tap capital from the U.S. market, Softbank and Nasdaq said in a joint statement. "This is our first attempt to join our investors with investment product outside the U.S. and make it easy and less costly for that to happen," said Frank Zarb, chairman of the National Association of Securities Dealers (NASD), the Nasdaq's parent. Zarb spoke to reporters in New York via satellite from Tokyo, along with Softbank President Masayoshi Son, who will serve as president of the new venture. Japanese investors would be able to trade all 5,000-plus Nasdaq stocks during U.S. trading hours, which currently run from 9:30 a.m. (1330 GMT) to 4 p.m. (2000 GMT). During Japanese business hours, Zarb said, trading would likely be limited to the top 50 or 100 Nasdaq stocks to ensure strong liquidity. The trading session could stretch for nearly 21 hours, if U.S. extended trading hours are put in place by the time the system makes its debut, Nasdaq said. NASD is currently considering a proposal for an evening U.S. trading session. Nasdaq is the second-largest U.S. stock market. For most of its 28-year life, it was a place for start-ups to win crucial financing. But as the companies and the market have grown, many of Nasdaq's giants have opted to stay instead of transferring to the New York Stock Exchange (NYSE), the world's largest stock market. "This is a chance for the young Softbanks and the young Bill Gates of Japan, who are seeking ways to a major capital market," said Zarb, referring to Bill Gates, a Microsoft co-founder. Analysts said the move could give a leg up to smaller companies in Japan, where the financial structure is not as generous as it is in the United States. "This could really bring a diversity of funding to Japan and it could be a shot in the arm," said Seijiro Takeshita, director of Japan strategy and economics for ABN AMRO Equities London. "We don't have the nurturing structure like Silicon Valley, and it's one reason the economy has stagnated." Not all Nasdaq participants were happy about the link, saying the small U.S. broker-dealers who make up more than 90 percent of Nasdaq's membership might be unable to participate because they would have to pay higher costs to staff the Japanese session. "This appears to be a back door to extended U.S. trading hours, which is opposed by the membership of the Nasdaq-Amex, the NYSE, as well as many of the issuers," said Alan Davidson, president of Zeus Securities. Davidson was elected to the NASD board in December 1998 as an advocate for small brokerages. The Japanese move could also mark a step toward round-the-clock global trading. When asked whether NASD had a long-term goal of setting up a series of Nasdaq-like systems around the world, Zarb specifically declined to comment. But later, he said, "How we solve the issues in this market may be very helpful in solving issues in other markets. Going forward, whether in six months or six years, the major markets ... will be interconnected," Zarb said. The Australian Stock Exchange said on Tuesday it expected to announc...