The Open Internet Exchange will help ensure fewer irrelevant ads, as well as additional protection against fraudulent websites.
Kent Ertugrul, chairman and chief Executive of Phorm, said: "In a world where all websites rely on advertising for their existence this offers the promise of better content for consumers."
The new system will create a new marketplace for online advertising, based on internet users' browsing activity.
The user will be served with ads based on their previous browsing history.
In addition, the system will alert users to websites which could fraudulently attempt to obtain their personal details.