Originally the specialized exchange was to go under the name Alex, but due to a trademark dispute it will initially be called BÃ¶rse Frankfurt Smart Trading in the German market and SWX Quotematch in Switzerland.
A spokesman for the new exchange said: "SWX Group and Deutsche BÃ¶rse AG are combining their clout in a rapidly growing market segment and thereby creating a new market standard.
"As a specialized exchange, it can address more directly the specific needs of customers in this segment. The advantages of Alex also lie in the aggregated liquidity that will be attracted to this centralized trading venue from all corners of Europe and a large network of participants."
At first, SWX will outsource its warrants and structured products business to create the new exchange and it will also become a partial owner of the warrant-certificate and certificate trades at the Frankfurt Stock Exchange. Over the medium term, the aim is for trading on the two exchanges to migrate to a joint technology platform.
The company will be based in Luxembourg, but have subsidiaries in Switzerland and Germany.