The London Stock Exchange is in talks with the owner of the Singapore stock exchange over a potential £7.2bn merger.
According to the Telegraph, the LSE has held a number of informal conversations with the Singapore exchange over a tie-up.
The news comes as there are continued attempts at consolidation in the sector. Last year the LSE pulled out of a £4.2bn merger with the Toronto stock exchange, while NYSE Euronext has been attempting to merge with the Deutsche Borse. The Singapore exchange has also attempted to buy the Australian stock exchange.
If a tie-up between the two exchanges was concluded it would create the third largest exchange in the world, behind the NYSE Euronext and the Nasdaq OMX.