NEW YORK. May 4: The Nasdaq. the No. 2 US stock market, says its role in the soon-to-be merged Anglo-German bourse propels its European ambitions and moves It closer toward its ultimate goal of erecting a global market, says Reuters.

The shares of some of the world's biggest technology companies. including software giant Microsoft Corp, and the No. 1 chip maker Intel Corp, are traded on the Nasdaq stock market, which also Is the home of the technology-rich Nasdaq composite index.

The Nasdaq, founded in 1971. has grown from a place to trade stocks over the counter to an electronic marketplace that now Is the chief rival of the 208-year-old New York Stock Exchange. the world's largest exchange.

For years. Nasdaq's leadership has worked on a plan to penetrate the European equities market The pieces fell quickly Into place this week. Early

Wednesday. Europe's two biggest stock markets. London and Frankfurt, announced their plans to merge as well as to link up with the Nasdaq to create a market in high-growth stocks.

"We had a vision for Nasdaq Europe. What we have here today gets this done in a matter of months Instead of years." said Frank Zarb, chairman of the National Association of Securities Dealers. Nasdaq's parent

Zarb. In London after final talks with the London Stock Exchange and the Deutsche Bocrse. was speaking via satellite to reporters at Nasdaq s glitzy "Marketsite" In Manhattan.

Establishing Nasdaq in Europe. Zarb said, builds a new gateway for US and European Investors to trade shares in companies based on either side of the Atlantic.

Yet. Nasdaq's idea of a seamless, globally linked electronic market is still Just (hat — an idea.

So Nasdaq's ability to create the world's first global electronic stock market hinges on whether It can satisfy demands from regulators in Japan. Germany and. perhaps most Importantly. the United States.

Nasdaq's plans in Europe were hatched last year, when its officials said they would build "Nasdaq Europe, a pan-Euro-pean electronic stock market that would be based In London.

It had been scheduled to open In the fourth quarter of tills year. As part of that deal, Nasdaq partnered with Australia's News Corp. France's Vivendi and Japan's Softbank Corp. 9984. T.

But on Wednesday. Nasdaq said It would Instead form a Joint venture with the new Anglo-German exchange. Nasdaq said this, as the London Stock Exchange and the Deutsche Bocrse announced they would merge Io form "IX" — standing for International exchanges. The London-Frankfurt merger

is expected to be completed this autumn.

Under the auspices of what will be Europe's biggest stock market. "Nasdaq "DC will operate as a separate market focused on smaller, high-growth companies. absorbing the Deutsche Boerse's Neuer Market and London's techMark.

Nasdaq and its original partners will own 50 per cent of the Frankfurt-based Nasdaq IX. The Anglo-German bourse will own the other half.

The idea behind Nasdaq IX Is cross-Atlantlc trading via Nasdaq's systems. This can only happen, though, with the blessing of the US Securities and Exchange Commission and German regulators. NASD spokesman Andrew MacMillan confirmed.

Nasdaq's highest hurdle In Its quest to go global Is SEC clearance, said Ian Domowltz. I he Sineal professor of finance al Pennsylvania State University.