A German magazine is reporting that German stock Exchange, Deutsche Borse has developed a plan to merge with New York-based, NYSE Euronext.

The deal, which would create thw world’s biggest stock exchange group, would combine the businesses in a holding company in the Netherlands.

According to the report, Deutsche’s Chief Executive Reto Francioni, has presented his supervisory board with proposals for the merger.

The implications for the London Stock Exchange are not entirely clear, but must be worrying given the general economic climate.