Nasdaq CEO Hardwick Simmons says he's not in a rush to merge

Nasdaq, the second largest stock market in the US, plans talks with top European stock exchanges such as Euronext, and bourses in London and Germany.

Last week Euronext itself expanded when it had an offer for the London International Financial Futures and Options Exchange (Liffe) accepted.

Mr Simmons indicated that Asia was also another potential merger candidate.

Nasdaq has already dabbled in European and Japanese markets through its Nasdaq Europe and Nasdaq Japan ventures. Mr Simmons said he would like to see a deal that would go beyond those initiatives.

Eyeing the future

Thursday's announcement comes as the National Market, as it is also called, is pondering a stock float.

Nasdaq hopes to sell shares in itself in the hopes of making itself a better merger partner while also creating access to a greater pool of workable capital. Also, publicly traded firms are also able to offer employees shares in the firm as a benefit.

A decision is not expected on whether to sell shares in Nasdaq before the end of 2002.

Mr Simmons indicated that both goals could be achieved simultaneously.

Nasdaq is seeking to sever itself from its parent organisation, the National Association of Securities Dealers (NASD).

Linking markets

During his speech to the SIA, Mr Simmons also said ensuring the stability of financial markets through communications links and duplicate trading floors is crucial in order for financial markets to survive another terror attack.

"It's particularly important after what we saw happen on 11 September because why would the US markets have shut down that day if indeed there were pools of liquidity either in Europe or Asia that could have traded our stocks," Mr Simmons said.

Mr Simmons also said mergers and acquisitions are the best way to solidify the agreements that would allow overseas markets to trade shares of American firms.

The attacks on the World Trade Center shut down stock markets in the US for four days, a phenomenon not witnesses since the days of the Great Depression.

In the immediate days following the attacks, Mr Simmons, New York Stock Exchange chief executive Richard Grasso and others discussed ways in which the markets could trade one another shares in the event of another national emergency.