The newly-merged CME Group is in preliminary discussions to buy The New York Mercantile Exchange (Nymex) in a cash and stock deal that could be worth around $11 billion.
Under the terms being discussed, Nymex shareholders would receive $36 in cash and 0.1323 of a share of CME stock, in exchange for each Nymex share they hold.
The deal would value each Nymex share at roughly $119.22, a 11% premium to the stock's closing price of $107.16 on Friday.
In a statement the two companies say that discussions are in "early stages" and the final terms of any potential transaction "may be materially different from what is being discussed".
CME says it expects to maintain trading floors in the New York City metropolitan area. The potential transaction also contemplates that NYMEX will repurchase the 816 Nymex memberships upon closing for no more than $500 million.
The two exchanges have agreed a 30 day negotiating period.
The transaction remains subject to negotiation of other terms, completion of due diligence, negotiation of terms of a definitive agreement and approvals of the boards of directors of both companies, says the statement.
CME Group was created by the $11.9 billion merger of the Chicago Mercantile Exchange and Chicago Board of Trade last year.