After a meeting in Paris, officials said they had a "strong committment" to set up the new market and would issue an agenda to work out the details.

Europe's traders are talking to each other

Stock Exchange officials from London, Frankfurt, Amsterdam, Brussels, Madrid, Milan, Stockholm and Zurich said they were hoping to create a "federal and competitive pan-European stock market."

One exchange, however, will be notably absent from future talks.

The chief executive of Stockholm's share market, Per Larsson, said in a statement that a Europe-wide exchange would not benefit the customers and would impair free competition.

Mr Larsson said this plan was "a political project" and a "reactionary" idea creating a European exchange monopoly.

Paris traders have come to accept joining the Anglo-German alliance

The spurt to create the new stock exchange was triggered by the link-up of Europe's two largest bourses, Frankfurt and London, which was announced in July this year.

The Anglo-German market would have given companies access to more investors, making it easier to raise money. This could have persuaded more and more businesses and investors to abandon the other exchanges across Europe.

Because of this threat some of Europe's other stock markets tried organise an alternative alliance. When it became clear that a majority were prepared to throw in their lot with London and Frankfurt, talks started to create the pan-European exchange.