Strategic alliances, mergers, and acquisitions are changing the partnerships in global financial trading. This week the New York Stock Exchange (NYSE) announced a marriage with the Deutsche Boerse (DE), the financial trading behemoth in Europe.Another engagement announced last week that garnered less attention is the planned merger of the Toronto Stock Exchange (TSX) with the London Stock Exchange (LSE). These cross-country liaisons are not new. However, they have increased in frequency over the last few years, motivated by tighter profit margins and a broader investment horizon.The DE suitor is not without rivals. The Chicago Mercantile Exchange (CME) and the Chicago Board of Trade (CBOT) have entered the fray. According to Sun-Times Media LLC, they will “try to buy” the NYSE Euronext Inc., the parent company of the NYSE. Currently, the Chicago duo controls almost all of the US based derivatives market. By partnering with the NYSE, it would create the largest single exchange for trading stock options along with the stocks.One of the strong points of German suitor DE for the NYSE is its European derivatives business. After the marriage, that would comprise more than a third of the combined revenue. The marriage would also further fortify its European footprint.In 2007, the NYSE bought the Euronext (ENXT) exchange which was headquartered in Paris. This was the year after the NYSE ‘went public’ with an initial public stock offering. Good timing. It shed its two-hundred year tradition as a members owned club. The NYSE was grown from a gentlemen’s agreement under a Buttontree in 1792 near where its iconic building was built in 1902. It served as rallying point for American patriotism after the 9/11 attacks so nearby. This proposed further dilution of its gene pool with foreign entities is not welcomed by all.The new couple would have its incorporation in the Netherlands and keep residences in New York and Germany. The two companies have not yet decided on a joint name. This will be a tricky subject because of the current national references to New York and Deutsche (German). When the NYSE and ENXT it opted for the typical double-barrel name of NYSE Euronext. Similarly, the acquisition by the NASDAQ exchange of the Nordic stock market resulted in the new corporate name of NASDAQ OMX. The latter was acquired for $3.7 billion in May 2007. NASDAQ OMX has also signed Memorandums of Understanding with the Shanghai, the Korean, and Japan’s Jasdaq exchanges.Also in 2007, the DE made forays into the Bombay Stock Exchange, where the NYSE also had nearly a 20 percent holding of India’s Nation Stock Exchange. What may have precipitated this year’s deal was the DE purchase of the International Securities Exchange (ISE) in 2007, whereby it created a transatlantic derivatives market. In 2010, the DE had to write-down 453 million euros of ISE intangible assets as an impairment loss, according to their 2010 Financial Report released earlier this week.There was also an ‘efficiency’ programme costing 110.7 million euros. These resulted in a net reported loss for the DE Group. However, it did have strong cash flow from operations and issued a dividend of 2.10 euro, similar to last year. Going forward, the new combined entity is expected to save some $400 million of operating costs. One wonders who will not be invited to the wedding.The combined value after the marriage is estimated to be $25 billion. The NYSE shareholders would receive about a half or 0.47 shares in the new entity for each of their existing shares. Under the current stock valuations, this would result in DE owning 60 percent of whatever it’s called. The DE shares are trading as ‘DB1’ at 57.70 euro with a market 11.2 billion euros.The NYSE Euronext shares trading in the US as ‘NYX’ soared 17 percent on the rumour. They have retreated a few points since Tuesday’s announcement. It is currently at $36.95 with a market cap of $9.5 billion. The NYSE has listings for a total of $13.4 trillion of other company stock as of December 2010. That makes it the largest stock exchange in the world.The London Stock Exchange (LSE) is the next in line in terms of competition. Its announced intentions to merge with the TSX owner TMX Group would result in a combined value of $6.9 billion, according to the New York Times. The TMX is trading as ‘X’ at $40.60 CAD with a market cap of $3 billion. The ‘LSE’ is trading in the UK at £9.12 with a market cap of £2.75 billion. The LSE would own 55 percent of the entity with the TMX holding the smaller share. It would create the largest market for mining and natural resource companies. The TMX shareholders would receive just under three shares in the also to-be-named entity. It may have future competition from a proposed $8.3 billion merger between the Singapore and the Australian Exchanges.All this merger activity is a bit heady. They will be fewer standing after the wedding bells stop chiming. Suffice it to say, that providing a platform for trading stocks is a business that is not as profitable as it was a few decades ago. With a greater international perspective and a focus abroad on listing new companies, a global reach for the exchanges will make dollar and cents. It will also facilitate the proliferation of trading in the far reaches of the World. How will the Old World fare?New York Mayor and part-time Bermuda resident Michael Bloomberg is quoted as saying the proposed DE and NYSE merger “is a good deal for New York City.” He goes on to say it will encourage a common set of accounting standards, such as the global move to the International Financial Reporting Standards (IFRS). This is a good thing for investors. Will the marriages bring forth fruit? Only time will tell.Patrice Horner holds an MBA in Finance, a FINRA Series 7 Licence, and is a Certified Financial Planner (CFP-US). Any opinions expressed in this article are not specific recommendations, nor endorsements of any products. Individuals should consult with their banker, insurance agent, lawyer, accountant, or a financial planner for advice to address their personal situations.