Nasdaq denies merger report

? Nasdaq, the 32-year-old electronic market suffering from the collapse of the Internet boom, denied a published report Tuesday that it is exploring a possible merger with the New York Stock Exchange.

The Wall Street Journal, citing unidentified sources, reported Tuesday that Nasdaq chief executive Robert Greifeld approached NYSE officials with the idea about three weeks ago.

The concept is at a very preliminary stage and no formal proposal has been made, the Journal said.

In a statement, Nasdaq said the story was “based on rumors and speculation,” and “has no basis in fact.”

A spokeswoman for the all-electronic stock market used the opportunity to tweak its bigger rival, saying, “It’s natural that speculation of this type would arise when there is such broad acknowledgment that the NYSE needs to evolve toward Nasdaq’s market structure.”

Greifeld and interim NYSE chairman John S. Reed were not available for comment.

The speculation comes during challenging times for both.

The NYSE is dealing with criticism that its open-auction style trading system is antiquated, and the aftermath of controversy about former chairman Dick Grasso’s $187.5 million compensation package.

The Nasdaq has struggled to recover from the collapse of many dot-com firms beginning some four years ago.