(March 26 – 15:00 ET) – Nasdaq and the London International Financial Futures and Options Exchange are teaming up in a partnership to develop the single stock futures market, based on global stocks, for U.S. and European customers.

Later this year, regulatory changes will allow U.S. investors to trade single stock futures for the first time. In September 2000, U.S. regulators announced they would repeal the Shad Johnson Accord enabling U.S. investors to trade single stock futures, starting December 21, 2001.

In Canada, the Montreal Exchange launched single stock futures earlier this year. The U.S. options exchanges are also getting into this business.

Nasdaq and LIFFE will form a U.S.-regulated entity which will list single stock futures on global companies through LIFFE’s electronic trading platform, LIFFE CONNECT, for trading by U.S. customers. The pair also intend to develop links with U.S. and European clearing organizations to maximize efficiencies for their customers.

Frank Zarb, chairman of Nasdaq, said, “This partnership moves Nasdaq into a market segment which is new but consistent with our global program. We expect these instruments to become important investment vehicles in the United States and Europe. This transatlantic partnership opens new opportunities for both Nasdaq and Liffe — it gets us to market faster and positions us well to offer state-of-the-art electronic trading to investors in both the U.S. and Europe.”

Brian Williamson, LIFFE’s chairman said, “Anticipating the growth in global equity trading, LIFFE pioneered the development of futures on global stocks with the successful launch of its Universal Stock Futures earlier this year. The strength of Nasdaq’s brand and its pre-eminent position in the U.S. equity market will make our single stock futures offering a compelling choice for both retail and institutional customers in the U.S., as well as in Europe and beyond.”

John Hilley, chairman and CEO of Nasdaq International Inc. said, “The world is moving rapidly toward electronic trading across a wide array of financial instruments. At the same time, geographic barriers are coming down. This partnership is an important and tangible step in both directions — bringing more products and choices to investors in the United States and Europe.”