Nasdaq to Cross the Pond
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High-tech stock market Nasdaq announced Friday that it will launch in Europe next year, and will base its new exchange in London.
The U.K.'s Chancellor of the Exchequer Gordon Brown applauded Nasdaq's choice of location, saying that it was massive vote of confidence for the City and would be good for the European economy as a whole.
"Job creation and economic growth depend on efficient capital markets channelling funds to businesses to finance their expansion," said Brown. "This is more than ever true in the Internet economy."
When Nasdaq-Europe launches in the fourth quarter of 2000, European investors will have an Internet-accessible, high performance trading platform linked with other Nasdaq markets in the United States and Asia. Although Europe already has a Brussels-based equivalent to Nasdaq, called Easdaq (European Association of Securities Dealers Automated Quotation system), it has not to date been very widely supported.
Nasdaq's entry into Europe may oblige the various European markets to cooperate more closely with each other. There is still no common trading platform between the six European exchanges, although plans have been initiated to create one.