The world's second largest stock exchange, Nasdaq, has unveiled plans to set up a rival to Deutsche Boerse, in its latest attempt to crack the European market.

Nasdaq has tried to enter Europe before

The tech-heavy US stock exchange has teamed up with two leading German banks and two small German exchanges to launch a new bourse.

Nasdaq's previous attempts to crack the European market - including its Nasdaq Europe venture - are widely regarded as having been unsuccessful.

Nasdaq Deutschland could be different, not least given the involvement of Commerzbank and Dresdner which are said to resent their lack of influence over Deutsche Boerse, the German Stock Exchange.

Deutsche Boerse handles 90% of share trading.

Nasdaq will own 50% of Nasdaq Deutschland, the Berlin and Bremen bourses will own 10% each, Dresdner Bank will own 15%, while Commerzbank and its online brokerage Comdirect will hold the remaining 15%.

Nasdaq has even extended an invite to anyone else who would be interested in taking part in the venture.

Challenge

Nasdaq is only too aware that it will be tough to grab a 14-18% market share in Germany by 2005, let alone achieve its believed aim to break even within three years.

It is widely acknowledged that there are too many stock exchanges in Europe.

Cost cutting, takeovers and mergers are seen as key for Europe's existing bourses to survive.

The new bourse will be based on Nasdaq's new Supermontage trading platform which will be launched next month.