European market planned

By BRUCE STANLEY

The Associated Press

LONDON --- The race to create Europe's first unified, regional stock market took an American twist Friday when the Nasdaq Stock Market unveiled plans to create an Internet-based European network.

Nasdaq-Europe, scheduled to begin operating late next year, aims to help the region's high-growth companies raise money while also making it easier for Europeans to invest in blue-chip American and Asian stocks.

Nasdaq is entering a crowded arena. National stock exchanges based in London and Frankfurt, Germany, are trying to build a Europe-wide market of their own. Easdaq, a niche stock market based in Brussels, claims that title already, while independent trading firms known as electronic communication networks are trying to grab regional business for themselves.

But some analysts and investors say Nasdaq's size and experience give it an edge. At the very least, they say, Nasdaq's arrival should prod its European competitors to move faster --- or get out of the way.

Nasdaq is the world's largest stock market and is dominated by the fast-growing technology companies that list their shares on it.

Its parent, the National Association of Securities Dealers Inc. in Washington, D.C., has formed a joint venture for Europe that includes the high-tech investing firm Softbank Corp., of Japan, and the venture capital arms of Rupert Murdoch's News Corp. media conglomerate and France's Vivendi industrial group.

Nasdaq-Europe would form part of a 24-hour trading network, with links to Nasdaq in the United States and to the market Nasdaq already plans to open in Japan. Nasdaq-Europe would be based in London but have branches across Europe.

NASD chief executive Frank Zarb said Nasdaq-Europe would try to work with, not against, existing European institutions. But he added: "If that doesn't work out, it's up to the marketplace."

Nasdaq-Europe still must obtain regulatory approval from Britain and other European countries where it hopes to operate.

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