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It is a significant coup for the exchange, which has been embroiled in a battle with the New York Stock Exchange for the darlings of Silicon Valley.
The two already own half each of Eurex, the world's largest derivatives exchange, which has lately been trying to expand in America.
Avatars trade their creations in "Linden dollars", convertible into hard dollars on Linden's currency exchange, which has a monthly trading volume of $4m.
The Sensex index of the Bombay Stock Exchange, which has fallen sharply since hitting a record high in early November, was up 0.69 percent.
The $2.8 billion deal is a boon for the German exchange, which has been thwarted in its previous efforts to combine with other institutions.
But its lead has since eroded, amid increasing competition from the exchange, which has spent considerable energy courting the new class of high-flying Internet companies.
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Possible partners in such an exchange might include the Chicago Board Options Exchange, owned by the Chicago Board of Trade; Eurex, based in Frankfurt, half-owned by Deutsche Börse; London's futures exchange, Liffe, now owned by Euronext; or the Chicago Mercantile Exchange, which has long been eager to establish itself in Europe.Screen-trading of European derivatives has crossed the Atlantic.
The executive, David Vitale, 54, hired by the 18-member board today, said he was prepared to seek partnerships with other exchanges and resolve a dispute with the neighboring Chicago Board Options Exchange, which has delayed the trade board's conversion to a shareholder-owned company.
C1 New Bid for London Exchange OM Gruppen, which runs the Stockholm stock exchange, is expected to make a formal offer, which could include a hostile bid, for the London Stock Exchange, which has rejected an informal $1.18 billion offer.
It is also considering its options in a potential tie-up with the London Stock Exchange, which has agreed to a separate merger with the Toronto Stock Exchange.
Witness the member-owned New York Mercantile Exchange, which has been pursued by two private-equity firms and a consortium led by its former chairman.
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