The Exchange Council of the Frankfurt Stock Exchange (FWB) backed yesterday a merger of market operator Deutsche Boerse and NYSE Euronext, a deal that would create the world’s biggest exchange.

The FWB, which represents brokers, investors and the interests of the German state of Hessen, “commented positively on the planned merger”, a statement said, noting opportunities were to be gained by combining a “global presence and local roots.”

Council chairman Lutz Raettig said that the move was a “clear expression of the strength and attractiveness of Frankfurt as a financial centre”.

Deutsche Boerse’s strength was “based on its firm roots and ties” in the German financial capital, the statement added.

“We have to preserve and safeguard these success factors within the larger unit in future, too,” it said.

A plan signed on Tuesday by heads of Deutsche Boerse and NYSE Euronext, and due to be finalised by the end of the year, would create the world’s biggest exchange by revenues and profit.

According to the Deutsche Boerse website, its management board “requires the approval of the Exchange Council on all questions of fundamental significance”.

The German market operator’s works council has voiced concerns meanwhile over possible job losses, in particular because computer services for the new group are to be based in Paris.

Deutsche Boerse’s electronic exchange platform Xetra, which handles more than 90 per cent of German stock transactions, could be ditched in favour of a single Pan-European system, the Financial Times Deutschland newspaper reported.

“Nothing has been decided yet regarding the choice of a single exchange system,” a Deutsche Boerse spokesman said.

The head of NYSE Euronext, Duncan Niederauer, who was chosen to run the new, as-yet unnamed entity, visited on Wednesday the exchanges’s headquarters in suburban Frankfurt to present the merger plans to staff there, the spokesman added.