Mumbai: Seven of the biggest investment banks in Europe have announced the formation of a pan-European electronic share-trading platform. The banks said they would form a company with the goal of creating a trading platform for equities.

The plan groups Citigroup Inc, Credit Suisse Group, Deutsche Bank AG, Goldman Sachs Group Inc, Merrill Lynch & Co, Morgan Stanley and UBS AG.

An independent team would manage the new trading platform, the financial institutions said in a statement. The venture, expected to be up and running in 21008, follows the European Union's Markets in Financial Instruments Directive (MiFID), which takes effect in November 2007.

The EU directive allows creation of new trading platforms, or multilateral or cross-border trading facilities among member states of the European Union.

The new stock exchange would compete directly with the London Stock Exchange and other continental markets.

If the scheme goes ahead it will provide banks, fund managers and other institutions with a trading platform quite independent of the various national exchanges.

The new platform would allow banks to trade electronically in a wide range of leading European equities, including index trading on the FTSE 350.

The move also comes amidst news of takeover and merger bids among bourses that could exert downward pressure on their fees and margins. While the London Stock Exchange is eyeing acquisition in Asia, especially India, Euronext is trying to merge with the New York Stock Exchange.

The banks said they have already begun meeting with European regulators and authorities.