Nasdaq Canada is prepared to go after companies already listed on the Toronto Stock Exchange, now that the TSE is joining the New York Stock Exchange and eight other exchanges to form a 24-hour global market.

   "I always like to take the high road so I wouldn't want to use [ the word raid], but competition is good," said Doreen Davis, vice-president of Nasdaq International. In April, Nasdaq stunned the TSE by announcing it was setting up shop in Montreal and warned that Toronto could either join the new exchange or compete against it.

   Instead, the TSE has rejected that threat and hooked up with the world's largest exchange in what is to be called the Global Equity Market or GEM.

   Ms. Davis, while not ruling out any future deal with the TSE until she hears first hand from the exchange that it has rejected Nasdaq, acknowledged that a new battleground between Nasdaq and the NYSE appears set for Canada.

   "We weren't looking to compete with the TSE . We were hoping they would join this new market. If they decide otherwise, bottom line is we are competing," said Ms. Davis.

   She added that although Nasdaq had said in the past it would only seek new listings for Nasdaq Canada, it is prepared to go after existing companies.

   "By new listings I do not mean only initial public offerings but companies that are qualified. That could be companies that are already seasoned and publicly traded elsewhere in the Canadian market," said Ms. Davis.

   Steve Kee, a TSE spokesman, said yesterday, "We welcome the competition but feel the GEM alliance will offer around-the-clock trading. It has its advantages."

   Under the GEM alliance, multi-nationals representing about 60% of market capitalization on the world's exchanges would trade, representing about US$20-trillion.

   Details on GEM are yet to emerge and yesterday there were still no answers on questions such as what currency would be used or how the exchange might be regulated.

   Nasdaq Canada has faced its own share of criticism for lacking details but Ms. Davis said trading could begin in the third or fourth quarter of this year. The timetable for Canadian issues will not be moved up from the first quarter of 2001.

   "We anticipate we will be up and running before our competitor," she said.

   Regulatory issues have yet to be dealt with for both Nasdaq Canada and GEM, but it appears regulators are amenable to the new markets.

   "The bottom line is how do we protect investors and maintain and efficient capital markets," said Frank Switzer of the Ontario Securities Commission.

   Mr. Switzer said a situation could be set up where the regulators in the jurisdiction where a company is based would be responsible for that company.

   One thing is certain: Brokerages are already preparing themselves for an around-the-clock environment that will force them to bulk up on staff and resources.

   "We're racing towards markets that never close," said Paul Bates, president of Charles Schwab Canada. Brokerages could already see the global market coming but Wednesday's announcement was a clear signpost that we've almost reached that day, he said.

   "It's not just having people there or even having people there with language abilities to handle calls from clients in other countries," said Mr. Bates, adding that means his staff will have to well-versed in what's going on in other markets.

   "We could have a situation where we provide services in Japanese but those people will have to be culturally up-to-date. They'll have to have access to Japanese television stations and newspapers so they can be in a position to understand what issues might be going on when the client calls with a question."