Tokyo: US stock market NASDAQ said on August 19 that it still aims to build a global 24-hour trading system using hubs in the United States and Europe despite its recent failure in Japan.

NASDAQ Europe was thriving and its hybrid trading system - vital to the global trading network - was expected to be active in a few months, said John Hilley, chairman and chief executive officer of NASDAQ International Inc. He added NASDAQ no longer had plans for a hub in Japan or the rest of Asia.

"The system that we were unable to launch in Japan is up and running in Europe," he told reporters in Tokyo. "Because of the ease under European rules at which companies can be listed for trading, we have access to the trading of virtually all European securities on our NASDAQ Europe market."

"Unfortunately in Japan, the model for attracting IPOs (initial public offerings) was somewhat successful, but again given the economic circumstances, below expectations."

The New York-based hi-tech exchange said on August 16 it would abandon its troubled Japanese joint venture, NASDAQ Japan, after just two years to stem losses amid weak trading and economic activity.

It followed a $ 20.1 million write-off two weeks ago by parent NASDAQ on its Japanese operations, including $ 4.5 million it spent on developing the new system.

Since kicking off its Japanese market in June 2000, NASDAQ had promised it would institute a hybrid computer trading system- the first of its kind in Japan- that would eventually also link up to markets in Europe and the United States.

The system would combine elements of the current auction system and a "market maker" system, but two years after attempting unsuccessfully to introduce it, Hilley said the market lacked the means to support itself.

"We came to the conclusion that given the financial outlook and the inability to launch the new system that the decision had to be made to moved toward a cessation of operations of NASDAQ Japan," Hilley said.

The introduction of the system was a vital step to eventually being linked to NASDAQ's "Super Montage" 24-hour trading system, a NASDAQ spokesman said.

The Osaka Stock Exchange (OSE), which hosted the NASDAQ Japan market, said on August 19 that its 100-plus member brokers were unconvinced the expense of the new system was worth it.

"The securities firms were concerned that with the market in such a terrible state, the introduction of a new system would be too difficult on the cost front," said OSE spokesman Naoya Noguchi, adding each brokerage would have to update their own computer systems to accommodate the change.

NASDAQ Japan will end its relationship with the OSE on October 15, but will allow trading to continue and its brand name to be used until the end of December.

The 98 firms listed on the exchange - short of the 200 expected by now - would continue to be able to trade after that on a tentatively renamed Japan New Market, the OSE has said.