To: Howard Feinstein who wrote (37038 ) 11/20/1998 11:07:00 AM From: Elwood P. Dowd Respond to of 97611
Friday November 20 10:24 AM ET Compaq to link Europe's stock markets By Melanie Cheary FRANKFURT (Reuters) - Compaq Computer Corp (NYSE:CPQ - news), which provides the information technology and central host computers to the potential nine members of a pan-European bourse, said Friday it was developing software which could link them. But linking nine stock exchanges in a pan-European alliance would not be easy, and a system enabling this would take at least a year to put together, Compaq said. ''It would not be that easy. The easiest thing would be to agree on a single platform. That would be easy technically but very difficult politically,'' said Mark Miller, capital markets segment manager for Compaq Europe. Another alternative was a software program that could link all the exchanges' trading platforms and 'translate' deals from the delivering bourse to the receiving, he said. Compaq was currently developing software, called ''middleware,'' which would be able to do this, Miller said. But he emphasized that as yet Compaq was only in talks with Frankfurt and London with regard to their planned bilateral alliance. The other possible bourses in the alliance had not yet approached the company, Miller said. ''This software could divide up the contracts among the various platforms and link them all at the front end. That is technically more complicated, but we saw this coming and we've got something in the works,'' Miller said. ''It's software specifically designed to connect computers together, to connect different systems together. ''I think it's going to take at least a year to just put it all together because they'll have to come up with a common interface for the dealer and programmes that will fit between the trader's workstation and the exchange itself,'' he said. The Paris stock exchange said on Thursday it had invited the heads of exchanges in Amsterdam, Brussels, Frankfurt, London, Madrid, Milan, Stockholm and Zurich to a meet in Paris on Nov. 27. Dealers say Frankfurt's Xetra electronic trading system would be the most technically sensible adoption by a pan-European stock exchange. The German bourse operator, Deutsche Boerse AG, said this was speculation. Compaq's Miller declined to comment on whether the German platform would be adopted by the other exchanges. ''Xetra is one of the newest on the market. The other very new one being London's (SETS system). That makes the choice very difficult. Both cost tens of millions of dollars,'' he said. (Reuters/Wired)