A Nasdaq for Europe

Deutsche Borse and the LSE will join Nasdaq to create a high-growth exchange for Europe.

The two European exchanges have also announced their intention to merge, forming Europe's biggest stock exchange, iX.

The proposed exchange for high-growth stocks – Nasdaq iX – will have its headquarter in London, aided by a small office in Frankfurt.

Nasdaq iX will form a key part of the US company's strategy to create a seamless, global electronic trading platform open 24 hours a day.

Only a few hundred companies are initially expected to qualify for listing on the new exchange.

The main iX merger is expected to set off a further wave consolidation among European exchanges and settlement houses. The move towards pan-European exchanges holds out the promise of lower settlement costs and easier access to capital for growing companies.

“The Nasdaq iX joint venture combines the best of the existing high growth markets in Europe with future new listings for new economy stocks,” said Frank Zarb, Nasdaq chief executive.

“This joint venture increases our opportunity to create a powerful pan-European trading platform custom-designed for the high-growth investment opportunities created by our fast growing digital age,” Mr Zarb continued.