According to the latest reports, Bats Global Markets has agreed to merge with Direct Edge Holdings to create one of the largest exchange operators in the United States.

The merger would join two of the biggest stock exchanges owners in the United States. The reports of Bats Global  and Direct Edge merger talks comes as futures market Intercontinental Exchange Inc. (ICE) prepares to complete the acquisition of NYSE Euronext.

If the Bats Global Markets, which is based in Kansas and Direct Edge, which is based in Jersey City, New Jersey come to an agreement on merger then it would create the second-largest exchange operator backing the combined NYSE-ICE. Bats Global was formed in 2005 by trader Dave Cummings of Tradebot Systems and along with Direct Edge provided an alternative to the two leading players, the New York Stock Exchange and the Nasdaq Stock Market.

Joe Ratterman, the chief executive officer of Bats will continue to be the chief executive Direct Edge CEO William O'Brien will become the president. The financial details of the deal was not disclosed by the two companies.