NYSE Euronext and Deutsche Boerse reveal merger details

image captionThe newly combined company will have headquarters in both New York and Frankfurt

NYSE Euronext and Deutsche Boerse have formally announced their plan to merge, in a move that will create the world's largest stock exchange operator.

The newly-combined company will have headquarters in both New York and Frankfurt.

NYSE Euronext's chief executive Duncan Niederauer will take the the role of chief executive at the yet-to-be-named company.

Reto Francioni, chief executive of Deutsche Boerse, will become chairman.

At the close of New York trading, NYSE shares were down 3.4% at $38.12, while Deutsche Boerse shares were 2.4% lower.

Deutsche Boerse will own 60% of the combined group, which will have a combined net revenue of $5.4bn (£3.4bn).

Fresh access

The two exchanges have faced increasing competition from newer exchanges who cater to dominant high-speed electronic traders.

"This transaction brings together two of the most respected and successful exchange operators," said Mr Francioni.

"Clients will have unparalleled access to markets, products, information, world-class technology, clearing services and settlement."

The deal is subject to acceptance by a majority of NYSE Euronext shareholders, 75% of Deutsche Boerse shareholders and the approval of regulators in the US and Europe.

Related Internet Links

The BBC is not responsible for the content of external sites.