The European Central Bank (ECB) is deciding the technology requirements for a share clearing and settlement system that will allow sharetrading across Europe.
The Target 2 Securities (T2S) platform due to go live in 2013 will reduce the costs associated with cross-border trades by creating a single system for the Eurozone.
Speaking at the sixth annual Finexpo City technology Strategies event in London today, Marc Bayle, T2S programme manager at the ECB, said the project had reached the requirement phase. The ECB is deciding on technology standards, he said.
"We are trying to turn a fragmented market into a domestic market," he said. "There will be a single IT platform to settle trades which will benefit users through economies of scale."
Bob McDowall, analyst at TowerGroup, said the project will need a significant technology planning and investment.
"They will have to connect to the investment banks which will require lots of networking and security technology."
There are currently a large number of clearing and settlement organisations across Europe. Clearing systems make sure that a share deal goes through by ensuring the buyer receives the shares and the seller receives the payment.