German stock market operator Deutsche Börse and the London Stock Exchange have held talks over a potential merger.

Both groups confirmed on Tuesday that detailed discussions over a planned tie-up had taken place, with the aim of creating a “leading European-based global markets infrastructure group”.

The news comes less than a week after Deutsche Börse mapped out plans to cement its position across cash and derivatives trading, clearing and post-trade.

Carsten Kengeter, chief executive of the German stock market operator, said the firm would target a top two global position in 2016 within all its business areas.

The German group owns clearing and settlement giant Clearstream and Europe’s largest derivatives exchange Eurex.

Under Xavier Rolet, the LSE has expanded by buying a number of businesses and owns part of LCH.Clearnet, Borsa Italiana, trade repository UnaVista and multilateral trading facility Turquoise.

The group also operates SwapClear, a clearing service for over the counter derivatives. 

Under the merger plans, a new holding company would be formed with the LSE owning 45.6% of the merged group and Deutsche Boerse holding the remaining 54.4%.

If a deal is agreed, all major  divisions on both sides would operate under their existing brand names and the merged company’s board would have equal numbers of members from each side.

The latest talks mark the third time the LSE and Deutsche Börse have tried to strike a deal, first in 2000 then in 2004-5.

Back in 2012, EU regulators blocked a planned $17bn tie-up between Deutsche Börse and NYSE Euronext.

The deal would have created the world’s largest combined market for trading stocks and derivatives.

Since then, NYSE Euronext was sold to Atlanta-based ICE, with Euronext then detaching itself in an IPO of its own. 

Euronext now competes with pan-European market Bats Chi-X Europe as well as the LSE and Deutsche Börse.