The European Commission has initiated a formal antitrust investigation into Deutsche Börse and Nasdaq, focusing on potential collusion in the listing, trading, and clearing of financial derivatives within the European Economic Area (EEA). The Commission suspects that these entities may have engaged in agreements or coordinated practices to avoid competition, which could include allocating demand, coordinating prices, and exchanging commercially sensitive information. Such actions, if confirmed, would contravene EU competition laws that prohibit cartels and restrictive business practices.
This investigation follows unannounced inspections conducted at the offices of both companies in September 2024. The Commission emphasized that the opening of a formal investigation does not prejudge its outcome and will be conducted as a matter of priority.
Deutsche Börse and Nasdaq have acknowledged the investigation, noting that it pertains to a cooperation agreement from 1999 between Deutsche Börse’s derivatives arm, Eurex, and the Helsinki Stock Exchange, which Nasdaq acquired in 2008. Both companies assert that the agreement was designed to enhance market liquidity and efficiency in the Nordic derivatives markets, providing clear benefits to market participants. They also highlighted that the agreement was public and had been discussed with the Commission at the time without objections.
In response to the announcement, Deutsche Börse’s stock experienced a decline of up to 7.3% before partially recovering. Both companies have stated their commitment to cooperating fully with the Commission’s investigation and believe they have strong legal grounds to defend their actions.
EU competition chief Teresa Ribera stated, “We are investigating whether Deutsche Börse and Nasdaq may have colluded to avoid competing for the listing, trading, and clearing of certain financial derivatives. Competition rules help secure fair and open competition among financial exchanges and ensure the proper functioning of the Capital Markets Union—a cornerstone for innovation, financial stability, and growth in the interest of all European citizens.”
The Commission has not specified a timeline for the investigation but has indicated that it will be conducted as a matter of priority. The outcome could have significant implications for the financial derivatives market and the broader financial services industry within the EU.