Nasdaq Misjudged Its Japan Venture --- U（二）.docVIP

Nasdaq Misjudged Its Japan Venture --- U.S. Exchange Failed To Grasp Local Values, Setting Stage for Failure By Phred Dvorak in Tokyo and Craig Karmin in New York.?Asian Wall Street Journal.?New York, N.Y.: Aug 19, 2002.?pg.?A.1 Full Text?(1203 ? words) Copyright Dow Jones Company Inc Aug 19, 2002 When the Nasdaq Stock Market came to Japan in the late 1990s looking to set up its own market there, brokerage firms and regulators were noncommittal. After all, Japan already had eight stock exchanges and an over-the-counter market, and was still deep in the throes of a 10-year equities slump. Nasdaq bulled ahead anyway, spurred by dreams of making Japan the first leg of a global market. The Americans snubbed Japans traditional securities establishment and launched the Nasdaq Japan market in 2000 on their own -- a decision that backfired by angering Japans biggest securities firms. While the differences eventually were resolved, the episode is emblematic of the way Nasdaq just got Japan wrong -- again and again. On Friday, those mistakes contributed to Nasdaqs downfall in Japan. As expected, the board of Nasdaqs Japan unit said it was ending the venture by the end of the year, pulling the Nasdaq name from the market it set up on the Osaka Securities Exchange just two years ago. To be sure, part of Nasdaq Japans problem had to do with the bursting of the global tech bubble, which torpedoed its revenue projections. Today, Japans benchmark Nikkei 225 Stock Average is 41% lower than it was in June 2000 -- a drop that scared away companies from listing their shares on the new market and investors from trading them. The fall in stock prices also undermined profits of brokerage firms that Nasdaq hoped would invest in its new trading system. Meanwhile, the 67% slump in the Nasdaq Composite Index in the U.S. during the same period lessened the ability of the Nasdaq Stock Market to support its hemorrhaging Japan unit. Nasdaq recently announced plans to take a $20 million char