A joint venture to launch a European version of the US POSIT electronic equity matching system is being discussed by Investment Technology Group (ITG), the US technology based trader and SG, the commercial and investment banking arm of France's Société Genérale group.

POSIT, which works alongside existing stock exchanges, allowing institutions to anonymously match their shares at mid-market prices via electronic trading, now has over 500 US clients using it. Investors incur no transaction or market impact costs by using the system.

Alisdair Haynes, chief executive at ITG, believes if agreement can be reached with SG, increasing European investor demand for additional sources of liquidity will see it succesfully established.