Ticker Talk

As expected, the Nasdaq Stock Market on Tuesday announced plans to create a Japanese version of the electronic Nasdaq trading system in a joint venture with Japanese Internet giant Softbank.

New Japanese stocks that would list on the new market also would be listed on Nasdaq, said Frank Zarb, chairman of the National Assn. of Securities Dealers, Nasdaq’s parent.

The market also would trade Nasdaq’s flagship technology stocks such as Microsoft, essentially extending the trading day for those stocks: Japan’s market begins trading about 5 p.m. PDT.

The move could be another step toward what is expected to be round-the-clock trading in all major world stocks.

The Japanese system is expected to be running in the fourth quarter.

* The Chicago Board Options Exchange, whose trading pits face competition from stock options offered on the Internet, said Tuesday that it will develop an electronic network and start shifting some contracts to the system next year.

The world’s largest options exchange declined to provide details about its plans. It said the new network will expand the automated system currently used by pit traders, making options available on computer screens outside the exchange.

* Brokerage Bear Stearns Cos. initiated coverage of its own industry Tuesday, with “buy” ratings on beaten-down shares of Morgan Stanley Dean Witter, PaineWebber Group, Charles Schwab and Legg Mason.

“These companies are in the best position to become long-term, viable players in an increasingly competitive and technology-driven marketplace,” analyst Amy Butte said in a report.

Morgan Stanley rose $1.88 to $87.88 and Legg Mason rose 94 cents to $32.56, but Schwab slid $2.56 to $81.38 and PaineWebber eased 25 cents to $38.94.