The London Stock Exchange has confirmed that it is in talks with its German counterpart Deutsche Boerse over a possible merger.
LSE said it was in "detailed discussions" over what it described as a "merger of equals". The London Stock Exchange Group's shares shot up 17% after the news, while Deutsche Boerse saw its share rise 7%.
This the third time to two firms have tried to merge, having failed to do so in 2000 and 2004/5.
Both companies said their businesses would continue to operate under their current names.