One driving force behind the merger mania we're seeing in the exchange business is the need for a business model that can unlock the benefits of technological might.

In many ways, the NYSE has become a technology business. The trading of securities, especially in straight equities, is under a lot of margin pressure, battling a relentless assault of smaller companies that were built on a whole new business and technology model. The NYSE has had a horrific time trying to compete with exchanges like BATS and Direct Edge and all the dark pools out there.

Technology both as a business via NYSE Technologies and as a tool to enhance its own services has been a competitive driver at least since the exchange bought SAIC back in 2006.

If the combined company is going to realize the benefits of the deal that executives are touting--$400 million in savings--the key will be integrating technology to lower costs. The bet is that the combined entity can indeed find ways to unlock the synergies, beyond the obvious redundancies.

But this is not a slam dunk. Many banks have had a notoriously hard time integrating systems after mergers. We're seeing that today. For its sake, we can only hope the NYSE Euronext fares better.

For more:
- here's a Dow Jones article
- here's an article on larger integration challenges

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NYSE-Deutsche Bourse merger terms unveiled
The global exchange game