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To: MileHigh who wrote (48031)	11/5/1999 11:57:00 AM
From: T L Comiskey	Respond to of 152472

$$$$$........ Friday November 5, 11:28 am Eastern Time Europe's bourses rocked by Nasdaq challenge By David Holmes LONDON, Nov 5 (Reuters) - Europe's stock markets face a serious challenge from Friday's launch of a European version of the U.S. Nasdaq market, despite assurances that it presents no threat to existing institutions. Market experts said Nasdaq's brand name recognition -- built up through a lengthy advertising campaign pegged to star stocks such as Microsoft Corp. (NasdaqNM:MSFT - news) -- could prove a powerful lure to companies and investors across Europe. Equally no-one has yet managed to achieve the truly pan-European market that investors want and Nasdaq is promising -- coupled with a global dimension, through the original Nasdaq in New York and a previously-announed Japanese venture. Publicly Nasdaq-Europe was stressing its desire to co-operate with European institutions. ``We should not be considered a threat to venerable existing institutions,' Frank Zarb, chairman and CEO of the National Association of Securities Dealers, said. ``We can be partners and we approach things from that standpoint.' Yet the new market was seen offering an attractive alternative in the hotly-contested area of technology new share issues or IPOs -- potentially the cutting edge of any stock market's future. Showing its determination to carve out a reputation in technology stocks, the London Stock Exchange this week launched its two techMARK indices, made up of 181 existing stocks but aiming to attract more growth company IPOs. KEY ADVANTAGES Ruben Lee, director of the Oxford Financial Group and author of ``What is an Exchange,' said Nasdaq had key advantages in its brand, its track record of IPOs achieving high prices -- and its success in promoting its image around the world. ``Existing markets will know that the competition could undercut their very existence,' Lee said. ``The very success of Nasdaq is an indication that an IPO market can turn into a market of major companies.' Lee said there was an opportunity for Nasdaq because of the lack of a single pan-European bourse. But he said there may yet be obstacles in its path. ``There are a lot of exchanges but no one or two is dominant and there is certainly no pan European exchange,' Lee said. ``It will put regulators on the spot...the question is, will people find ways of slowing it down?' Nasdaq officials, however, said there was room for more players in the expanding IPO market. ``I think there is an explosion of IPOs in Europe that will feed this market,' said Charles Balfour, Senior Vice-President of Nasdaq and Managing Director of Nasdaq International. ``We are not in this business to put the Neuer Markt or the Nouveau Marche out of business. We would like to be a catalyst for them and like-minded participants to join us. Together we can be very strong,' Balfour told Reuters. European exchanges also played down the impact of the initiative. ``Competition is always a good thing because it stimulates everyone else to be particularly good and efficient and seek new possibilities,' said Erich Obersteiner, half of the two-man board of the Vienna Stock Exchange. ``I do not believe that one global alliance will ultimately prevail. There will be several in competition with one another and I think that is good,' Obersteiner said. Fellow board member Wolfram Littich said Nasdaq's announcement could spur other exchanges to work more closely together. ``If someone says we are going to do something totally new and we have the money to do it, the others have to think about that, get together and ditch some of their egoism. As a customer I would welcome that,' Littich said. Yet other observers said Nasdaq-Europe still had plenty of work to do over the next year -- obtaining regulatory clearances, bringing investment banks on board and creating a technological network -- before it could succeed. ``There are a lot of bones in the announcement and not a lot of meat,' said one. " (Additional reporting by Sara Ledwith in London and bureaus in Paris and Vienna)