Deutsche Börse and CME Group Inc. (NASDAQ: CME) talked about a merger of the two big exchanges, and then apparently they did not. The consolidation of the sector has left some exchanges feeling small compared to the newly created giants. Managements of the two exchanges must have believe that they can make it on their own.

The Wall Street Journal reports:

The discussions, which haven’t progressed into formal merger talks, illustrate the pressure on exchanges to expand by fusing their operations following a multiyear slide in trading activity.

It also reflects the stepped-up challenge to CME as rivals forge deals to create stronger competition to the Chicago-based company.

Deutsche Börse said in a statement Monday it isn’t in merger negotiations with CME Group and is focused on “organic growth.”

A spokeswoman for CME declined to comment.

In December 2012, the boards of both IntercontinentalExchange Inc. (NYSE: ICE) and the NYSE Euronext Inc. (NYSE: NYX) approved a merger of the two exchanges.

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