The Paris bourse aims to set up an alliance of continental stock exchanges to compete with the pan-European market that London and Frankfurt plan after monetary union next January. Dublin is expected to form part of the alliance.

The Dublin stock exchange is expected to forge a formal link-up with Paris by the middle of next year, providing a Europe-wide listing and presence for all the financial and industrial companies currently listed on the Irish exchange. The development is considered vital for the future of Irish companies - especially the secondline companies - once EMU is a reality.

Mr Jean-Francois Theodore, chairman of SBF-Paris Bourse, which owns the French stock and derivatives markets, yesterday said the alliance of continental exchanges could be in operation by September and would include those exchanges left out of the London-Frankfurt link-up.

It would also have ties to the New York Stock Exchange to provide access for US investors, similar to a planned venture between Nasdaq, the US growth-stock market, and the Deutsche Boerse, operator of the Frankfurt exchange.

Mr Theodore did not name the European markets that would take part, but hinted that the stock exchanges of Spain, Italy, the Benelux countries and Sweden could be included.

Other European markets declined to comment specifically on Mr Theodore's proposal. The Amsterdam Exchanges have already indicated support for the London-Frankfurt alliance. The NYSE had no comment, while the London Stock Exchange repeated that its alliance would be open to others.