Lessons learned from Easdaq

By Jacques Putzeys

With this testimony, I aim to highlight what is required for a new European Equity Exchange to succeed. My observations are based on firsthand experience: we successfully launched EASDAQ in the 1990s. Recent discussions about creating a truly integrated European capital market—together with claims by certain stock exchanges that they already offer such a platform—have motivated me to establish a forum where I can share suggestions and play an active role.

I have revisited how EASDAQ was formed and which elements were crucial for its launch, reflecting the realities we faced at the time. I have intentionally omitted the names of other professionals who, like me, participated in its creation.

EVCA and the Initial Concept

The European Venture Capital Association (EVCA) initially championed a European counterpart to Nasdaq to give high-growth tech investments a viable exit strategy. Nasdaq supported these efforts by helping draft a succinct yet effective 50-page business plan. At the time, only the London Stock Exchange offered standards resembling Nasdaq’s—leading to the creation of AIM—while most European countries still used distinct accounting standards, lacked quarterly reporting, and had weaker corporate governance.

Regulatory Framework

In the 1990s, several pre–MiFID EU directives enabled the establishment of a standard prospectus and laid the groundwork for cross-border investments:

Admission Directive (79/279/EEC)

Harmonized conditions for listing securities on official stock exchanges.

Listing Particulars Directive (80/390/EEC)

Standardized the content of listing particulars (i.e., prospectuses).

Public Offer Prospectus Directive (89/298/EEC)

Allowed a single prospectus recognized throughout EU jurisdictions.

Investment Services Directive (93/22/EEC)

Introduced the “passport” mechanism for investment firms, enabling cross-border trading and settlement—vital for EASDAQ’s pan-European ambition.

By leveraging these directives, EASDAQ was able to offer a unified English-language prospectus and operate under a single regulatory framework for the distribution of shares across the EU. The passport concept allowed brokers and market participants to function seamlessly throughout Europe.

Complexities of Creating a Pan-European Exchange

(Some of these challenges persist in 2025.)

European Parliament Support

The EVCA convinced the European Parliament to unanimously endorse the concept of a “European Nasdaq.”

National Alternatives

France’s Nouveau Marché and Germany’s Neue Markt, launched despite parliamentary support for EASDAQ, remained confined to their national markets, impeding a truly pan-European approach.

Self-Regulatory Market Authority

EASDAQ established an independent Market Authority—overseen by the Belgian Banking Commission—to ensure compliance with its Rule Book.

Licensing in Belgium

Achieving self-regulated status in Belgium involved prolonged negotiations with government entities.

Nasdaq-Based Rule Book

Law firms that shared EASDAQ’s vision contributed to creating a comprehensive rule book, often at reduced fees.

Surveillance Department

A dedicated oversight division reported directly to the Market Authority.

Limited Initial Funding

Although founding members contributed some capital, multiple funding rounds were necessary to maintain operations.

Pan-European Trading and Settlement

EASDAQ implemented a cross-border system underpinned by market making. However, funding shortfalls kept it from achieving an ideal configuration.

EASD and Stakeholder Engagement

To tap into a range of expertise, the EVCA assembled professionals from across Europe into EASD (European Association of Securities Dealers)—a non-profit that included brokers, investment banks, PR agencies, and lawyers. While many members provided invaluable support, few invested significant funds, leaving EASDAQ undercapitalized. Consequently, I had to serve as both President of the Market Authority and CEO of the exchange.

Launch

After nearly a year spent finalizing the Rule Book, strengthening stakeholder relations, and selecting trading and settlement systems, we began courting potential listing candidates. By drawing on our stakeholders’ networks and attending numerous conferences, we adopted a proactive approach to guiding companies through the IPO process—relatively novel at the time. Within three years, over 60 companies listed on EASDAQ, including several that maintained dual listings on Nasdaq. This “European Nasdaq” vision, bolstered by rules modeled on Nasdaq’s, positioned EASDAQ as a logical springboard for companies seeking both a European presence and access to U.S. capital markets.

While there is much more to tell, it is more critical to focus on the future—particularly on the obstacles my team and I faced and how we overcame them—to inform the creation of a robust European Equity Exchange going forward