The Irish Stock Exchange is at an advanced stage of negotiations to purchase an electronic share dealing system, and it is understood that a deal to buy the NSC system from the French Stock Exchange is the favoured option.

Irish Stock Exchange chief executive, Mr Tom Healy, declined to comment on the planned purchase but denied reports circulating yesterday that a deal had already been done to buy the French system. If the NSC system is the preferred option, it is expected to cost the exchange between £1 million and £2 million to install and would be up and running late next year.

Moving to an electronic trading system is seen as crucial to the Irish exchange when the single currency arrives, as stocks will then be traded more on a trans-national sectoral basis rather than a specifically national basis. It is seen as crucially important that Irish stocks are as visible as possible against their peer group within the EMU group.