Nasdaq Europe Ltd. Announces A Joint Venture With The Combined London Stock Exchange and Deutsche Börse To Provide A Globally Linked, Pan-European Trading Platform For New Economy Companies

Nasdaq Europe Ltd. today announced that it has signed a memorandum of understanding for the formation of a joint venture with iX (comprised of the London Stock Exchange and the Deutsche Börse) to provide for a wide ranging, globally linked pan-European market for the listing and trading of initial public offerings, US and Asian and other international securities and "new economy" stocks from all across Europe.

Pursuant to the agreement, the Nasdaq iX joint venture will be able to offer investors Europe's high growth, high technology companies, including the high growth companies listed on Germany's Neuer Markt and the London Stock Exchange's techMARK. Initial listings expected for the Nasdaq iX joint venture will include several hundred companies from Neuer Markt and techMARK, the Nasdaq 100 companies, and other major U.S. and non-European international securities and exchange traded funds, including the Nasdaq 100 Index Tracking Stock (QQQ). The Nasdaq iX joint venture will provide European investors with a highly liquid market dedicated to the trading of stocks associated with the "new economy."

The Nasdaq iX joint venture will deploy the innovative Nasdaq hybrid market model that combines a next generation central limit order book with the best elements of a dealer-based system. The market will offer European investors an Internet-accessible, high-performance, low-cost trading platform linked on a global basis with Nasdaq branded markets in the US and Asia.

Frank G. Zarb, Chairman and Chief Executive of the NASD, commented, "We have seen huge interest from the marketplace since announcing our intention to launch a globally linked, pan-European trading platform, and I am delighted that iX and Nasdaq are creating this joint venture."

"Today's announcement represents one further step in realizing our global vision. The Nasdaq iX joint venture combines the best of the existing high growth markets in Europe with future new listings for new economy stocks. This joint venture increases our opportunity to create a powerful pan-European trading platform custom-designed for the high-growth investment opportunities created by our fast growing digital age," Mr. Zarb said.

Commenting on the proposed joint venture, Don Cruickshank, Chairman designate of London Stock Exchange, said: "The participation of Nasdaq provides us with the opportunity to build a global market and we look forward to working together closely to deliver the strategic vision we have outlined today."