Nasdaq has joined forces with Commerzbank, Dresdner Bank, and the Berlin and Bremen Stock Exchanges to establish a new blue chip stock market in direct competition with the dominant Deutsche Börse.
The new exchange, on which German and international blue chips and growth stocks will be traded, is expected to open for business in January 2003. It will operate under the name Nasdaq Deutschland with legal headquarters in Berlin and Bremen and an office in Frankfurt. The Berlin and Bremen stock exchanges will merge.
Nasdaq will hold 50% in the venture; Dresdner Bank will hold 15%, Commerzbank and its online brokerage comdirect 7.5% each, and the Berlin and Bremen stock exchanges 10% each. The partnership is open to further investment by new shareholders.
Analysts believe that Commerzbank and Dresdner Bank are dissatisfied with their lack of influence at Deutsche Börse, the dominant German exchange with 90% of domestic equity business, where trading is dominated by Deutsche Bank.
Nasdaq Deutschland will use the New York Exchange's SuperMontage trading platform and promises to offer more competitive pricing and improved liquidity for both German and international stocks. Trading will be drawn from stocks of the DAX 100, NEMAX 50, Nasdaq 100, Eurostoxx 50 and Dow 30. Over time, it is planned to expand trading to some 3000 stocks.