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Nasdaq announces plan to open Canadian marketplace |
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News |
April 28, 2000
NEW YORK, APR 27 (AP) - The Nasdaq Stock Market, moving further toward its goal of becoming a global trading network, announced plans Wednesday to open a Canadian marketplace.
The Nasdaq has previously announced plans to open marketplaces in Europe and Japan.
Under the proposal, Canadian investors will be able to trade Nasdaq listed companies through Canadian brokers, who will be connected to the computerized Nasdaq marketplace.
The proposal to open a market based in Montreal must be approved by the Quebec government.
Initially, only companies currently listed on the Nasdaq will be traded on the new marketplace.
Shares of Canadian companies that are publicly traded but not listed on the Nasdaq will not be eligible to trade on Nasdaq Canada.
But the proposal is designed to encourage more Canadian companies to list on the Nasdaq, said Frank Zarb, chairman of the National Association of Securities Dealers, the Nasdaq's parent company.
Currently, 128 Canadian companies are listed on the Nasdaq.
"Our agreement in principle with the Quebec government to create Nasdaq Canada will make it easier for Canadian investors to participate in the Nasdaq Stock Market, U.S. investors to participate in the Canadian economy and for Nasdaq to help foster a new generation of growth companies in Canada," Zarb said.
Most startup companies in the U.S. list their shares on the Nasdaq after completing initial public stock offerings. Hundreds of small technology companies have listed on the Nasdaq in the past few years.
"The strategy of openness on the world adopted by Nasdaq harmonize perfectly with Quebec's openness to free trade," said Quebec Prime Minister Lucien Bouchard.
"To date, the results clearly show that Quebec companies have benefitted substantially from this move to freer markets. We intend to continue in the same direction and take full advantage of the strategic
opportunity provided by Nasdaq's arrival," Bouchard added. |