AMSTERDAM EXCHANGE ANNOUNCES MODERNISATION DRIVE
The Amsterdam Stock Exchange, engaged
in a reform program to boost competitiveness, said it is
launching a modernisation drive of its operational systems.
    The move, announced one day after news of a first step
toward integration of financial market supervision in the
Netherlands, will involve new transaction and clearing and
settlement systems.
    In addition, the bourse's Amsterdam Interprofessional
Market (AIM) information system will be updated in short term
with software provided by the Chicago Midwest Stock Exchange.
    The Amsterdam bourse is also studying the possible
acquisition of Midwest Exchange software for a new
order-routing system, a statement said, noting the market here
remains firmly committed to the preservation of a trading
floor.
    "The Bourse management feels that, despite the discussions
triggered by the intended closure of the trading floor in
London, preparations for an overhaul of the trading floor in
Amsterdam have to continue," the statement said.
    The operational modernisation of the Amsterdam Stock
Exchange follows several liberalisation measures aimed at
stemming the flow of business to markets abroad.
    The liberalisation, particularly the introduction of
off-floor trading in stocks and bonds on a net-basis under the
AIM system, has been described by bourse officials as
Amsterdam's "little bang," a reference to sweeping reforms last
October on the London Stock Exchange known as Big Bang.
    AIM, started in a trial run early last year and officially
in force from January 1 this year, is already credited with
halting the growth in Dutch stocks traded abroad, mainly
London.
    Amsterdam, which feels an on-floor facility with fees is
vital for smaller investors, said it needs to overhaul the
floor to accommodate new technology and new members.
    A new floor layout and order-routing system should be ready
sometime next year, the statement said.
    It said it was also planning a new on-screen Central
Securities information System with prices from international
exchanges, including the U.S. And Japan, stock information and
company news.
    Yesterday, the bourse announced it would start coordinating
this summer market supervision with the options and futures
trade in the Netherlands as a first step toward a unified
financial markets watchdog. In addition, the bourse, options
and gold futures price lists will be merged this April.
    Transactions in Amsterdam are still processed with a now
outdated punch card system while price information stemming
from the larger off-floor deals done through AIM are not yet
integrated in the bourse's big board.
    A bourse spokesman said the exchange hoped to launch its
screen information service by 1989, but added this service did
not have first priority.
    At present, bourse price information and company
information announced by the bourse are published by a printer
service while a select number of prices is available via
teletext.
 REUTER
