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German and NY Stock Exchanges Approve Merger The company that operates the Frankfurt Stock Exchange and other European markets is buying the New York Stock Exchange to form the world's largest market for trading stock and other securities. The boards of Deutsche Boerse and NYSE Euronext approved the nearly $10 billion, all-stock merger Tuesday. Together, the two exchanges will list companies with about $15 trillion in value. The two exchanges had $5.4 billion in profits last year and said they expect to become even more profitable. The merger of two of the world's largest exchanges is in part a response to competition around the world in the securities industry. Smaller trading exchanges have increasingly gained a foothold in regional markets and in the trading of new types of securities. That market share has often come at the expense of more established exchanges like the ones in New York and Frankfurt. Duncan Neiderauer is now head of the New York exchange and is slated to become chief executive of the new one. He called the merger "the next step to reinvent the industry." Neiderauer said the new exchange would in time prove to be a "very attractive partner" to companies developing in emerging economies throughout the world. But he dodged one key question - the name for the new exchange. Neiderauer called it "an emotional decision for everyone" because of the U.S. and German identities in the current names. He said no decision has been made and will not be for awhile. The deal will create a single company that the Reuters news agency says will handle an estimated $20 trillion in annual trading in the United States, Germany, France, Britain, the Netherlands, Portugal and Belgium. Under terms of the deal, the Frankfurt exchange's shareholders will control 60 percent of the combined company and the New York exchange's the remainder. Officials said they expect that within three years the combined exchanges will be able to cut their operating costs by $400 million and add $133 million in new revenue. The deal must still be approved by regulators in the United States and Europe.