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Nasdaq, SSI division to form joint venture company

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CIOL Bureau
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BANGALORE: The Nasdaq Stock Market has tied up with SSI Technologies (SSIT),

a division of Chennai-based SSI Ltd. to form a joint venture company. The new

company, IndigoMarkets, will create Internet-based trading and market systems

for Nasdaq global markets including Nasdaq-Europe and Nasdaq-Japan– the new

markets being set up to provide European and Japanese investors with enhanced

opportunities to invest in the world’s preeminent stocks and initial public

offerings (IPOs), said a release here. IndigoMarkets will also sell its products

to other customers worldwide.

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The IndigoMarkets product line will provide a state-of-the-art electronic

securities market based on proven Nasdaq market structures. Market facilities

will include both order-driven and quote-driven structures as well as access to

external services such as third market trading. IndigoMarkets will provide these

services using the latest distributed and Internet technologies available from

several strategic partners including Compaq, Microsoft, Cisco Systems,

MCIWorldCom, and others. The new product line will also leverage existing SSIT

technology currently in use in several Asian stock markets.

More than 1,800 technical and functional specifications are under development

for the deployment of Nasdaq-Japan and testing is expected to begin in the third

quarter of 2000, the release added.

"This partnership draws together the brand, technology, and market

knowledge of Nasdaq and the execution, engineering, and brokerage skills of SSIT

to create a unique new company called IndigoMarkets. No other firm is as well

positioned to deliver on the Internet trading era," said Gregor S. Bailar,

Executive Vice President and Chief Information Officer of the National

Association of Securities Dealers (NASD), the parent company of The Nasdaq Stock

Market.

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Commented John Hilley, Chairman and CEO, Nasdaq International, Ltd. "Our

new joint venture with SSIT represents another important step in our strategy of

building on our position as the world’s leading global stock market. It

underlines our determination that the new Nasdaq-Europe and Nasdaq-Japan markets

will be based on the very best state-of-the-art technology. Nasdaq-Japan will be

first, but Nasdaq-Europe will be using the same technology and will follow

shortly. This will create the first major legs of Nasdaq’s global trading

network."

"SSIT is excited to work with Nasdaq to deliver a best-of-breed

electronic securities market. The opportunity to pool our resources to support

Nasdaq’s global needs and to offer these solutions to other world-class

clientele is truly powerful. The Nasdaq—SSIT relationship is poised for

significant expansion and growth because it leverages on the core competencies

of each partner–Nasdaq creating a new market environment and SSIT providing

the state-of-the-art Internet trading solution," said Kalpathi Suresh,

Chairman, SSI Ltd.

SSIT’s securities practice specializes in mission critical on-line

transaction processing in the areas of stock exchange automation and Internet

trading. Their product TESA–The Electronic Securities Architecture–is a

world class stock exchange automation system. The system supports various

services including trading, exchange and broker support, clearing and

settlement, and on-line risk management. SecuraTrade is an on-line Internet

trading system that provides complete trading facilities to investors over the

net. It enables brokerage houses and stock exchanges to quickly and easily

install powerful web-based trading sites on the Internet to service their

investors.

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SSIT will set-up an Off-Shore Development Centre (ODC) in Chennai, India, as

a Strategic Business Unit to support the requirements of IndigoMarkets. This ODC

will be the off-shore partner for IndigoMarkets and will actively support the

development and implementation of solutions for customers worldwide.

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