"The introduction of a single currency within the European Union will increase the breadth and sophistication of financial products offered in that market and provide new opportunities for US-based brokerages," the US Securities Industry Association said.

Outlets generated by the Euro include financing mergers and acquisitions as well as high-yield bonds, according to the SIA, an association of 800 US securities firms.

"These may become preferred investment alternatives, not only for European investors but for US investors seeking diversification," said the author of the study, Everett Ehrlich.

The report noted that Europe's market for high-yield securities totals only $2 billion in contrast to the $250 billion in the United States.

But the study predicted that "the limitations resulting fromthe smaller size and lesser liquidity of individual EU members" markets will give way to the expanded reach of the single market.

European monetary union is scheduled to take effect on January 1 in 11 of the 15 EU members. Monetary Union should be completed by July 1, 2002, when national currencies will be eliminated.