In a statement NYSE Euronext and the Deutsche Boerse said they could cut costs by 300 million euros ($400 million) a year.
Also, the companies say traders “would benefit from significant savings available through common IT infrastructure, simplified clearing processes, capital efficiencies and the formation of a more liquid, pan-European, pan-Euro regulated market.”
Meanwhile, it’s also worth noting that in a statement, the companies warned that they might not be able to reach an agreement. According to the New York Times that disclaimer may be warranted. The paper says “Deutsche Boerse has a history of efforts to merge with other exchanges, including the NYSE and the London Stock Exchange, but they have fallen apart.”
Looking at the sector broadly, exchange shares such as Nasdaq and CBOE soared on Wednesday, as investors placed their bets on who might be next.
“CBOE is the prettiest girl at the dance,” says Jon Najarian. But Rutschow adds that "I don't think they'll see a take out bid until the lock-up is done and that's June."
And as for Nasdaq, “There just aren’t enough buyers,” says Rutschow. "If you look around the world there aren’t any names out there.”
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CNBC.com with wires.