Economics Report.A ten-billion-dollar dealaims to create the world'slargest exchange company.The plan would combinethe operators of the New YorkStock Exchange and Germany'sFrankfurt Stock Exchange.The two companies, NYSE Euronextand Deutsche Borse,announced the agreement Tuesday.Deutsche Borse shareholderswould own about sixty percentof the combined group.One thing it still needs is a name.The new company would haveheadquarters in Frankfurt and New York.The New York Stock Exchangeis the world's most famousstock market and a symbolof American capitalism.Treasury Secretary Tim Geithner saysNew York will remain at the heartof the world's financial systemfor a long time to come.But the exchange businesshas changed in these daysof high-speed trading by computersin a globally connected economy.The Big Board now has to competewith smaller exchanges.Where stocks are traded has becomeless important thanhow much those trades cost.NYSE Euronext and Deutsche Borsehad profits of almost fourand a half billion dollars last year.They expect to save four hundredmillion dollars a yearby combining their operations.These savings could lowerthe cost of stock orders.But the size of the companycould raise concerns about competitionin the exchange industry.The new company would also havetrading operations in Britain,France and other European countries.Stock trading and otherfinancial services would remainimportant to the combined company.But much of its income is expectedto come from trading complexfinancial products called derivatives.The deal requires approvalby American and European officialsand by shareholders.Other exchange operators,like the CME Group, could tryto offer a higher pricefor NYSE Euronext.The CME Group, operator ofthe Chicago Mercantile Exchange,is one of the world'slargest traders of derivatives.Duncan Niederauer, chief executiveof NYSE Euronext,is expected to keepthat job in the new company.He says combining with Deutsche Borsewill make the company more competitive.DUNCAN NIEDERAUER: "This not only createsthe world's premier exchange group,but there's a word we allwant you to focus on today,and that is diversified.This will position us to compete onwhat is increasing a global landscapein a very competitive industry."Last week the operators ofthe London and Toronto stock exchangesannounced a deal to combine their companies.And the Singapore Exchangeoffered in October to mergewith Australia's exchange.And that's the VOA Special EnglishEconomics Report,written by Mario Ritter.