Manchester's financial services sector has linked with regional centres in the UK and continental Europe to lobby for the creation of a virtual stock exchange to help smaller companies with funding diffculties, reports the Financial Times.

The project, involving internet based share-trading, would be aimed at helping businesses across Europe. Small and medium-sized enterprises are the engine of economic growth but their capital is limited, said John Barnacle, chief executive of Pro.Manchester, a lobbying organisation for financial and professional services.