The tie-up between NYSE Euronext and Deutsche Börse has the potential to create a global equities monster with a formidable pan-European franchise, and would dwarf the group created by Wednesday's other surprise merger of the London Stock Exchange and the Toronto Stock Exchange, analysts said.

Will Rhode, an analyst at Tabb Group, said the merger will create a massive, truly pan-European exchange: "The deal with NYSE Euronext makes sense because the exchanges are aligned in terms of regions, products, and their regulatory outlook on the future of the European market infrastructure. The exchange will be truly-pan European, provided it does not violate European competition rules."