  Using observations of pulsars from the Parkes Pulsar Timing Array (PPTA)
project we develop the first pulsar-based timescale that has a precision
comparable to the uncertainties in international atomic timescales. Our
ensemble of pulsars provides an Ensemble Pulsar Scale (EPS) analogous to the
free atomic timescale Echelle Atomique Libre (EAL). The EPS can be used to
detect fluctuations in atomic timescales and therefore can lead to a new
realisation of Terrestrial Time, TT(PPTA11). We successfully follow features
known to affect the frequency of the International Atomic Timescale (TAI) and
we find marginally significant differences between TT(PPTA11) and TT(BIPM11).
We discuss the various phenomena that lead to a correlated signal in the pulsar
timing residuals and therefore limit the stability of the pulsar timescale.
