EU Opens Antitrust Probe Into Deutsche Boerse and Nasdaq Derivatives Dealings

In Brief

• EU investigates suspected cartel behavior in derivatives by Deutsche Boerse and Nasdaq
• Authorities suspect price coordination and sharing of sensitive commercial information
• September 2024 raids preceded full probe into competition breaches in EU markets

The European Commission has launched a formal antitrust investigation into Deutsche Boerse AG and Nasdaq Inc. over derivatives trading. Regulators suspect both firms may have coordinated to limit competition within the European market.

Officials are examining whether the exchanges avoided competing by dividing demand and aligning pricing strategies. They are also reviewing if the companies shared commercially sensitive data to support this arrangement.

The probe focuses on the trading, listing, and clearing of financial derivatives across the European Economic Area. These instruments derive their value from underlying assets like stocks, bonds, or commodities.

Authorities carried out unannounced inspections at company offices across Europe in September 2024. This step preceded the current investigation and helped gather preliminary evidence.

The suspected conduct may breach Article 101 of the Treaty on the Functioning of the EU, which prohibits cartel behavior. The Commission has confirmed that the case is now under full examination and may lead to sanctions.

EU suspects collusion and information sharing in derivatives operations

Regulators can fine companies up to 10% of their global turnover if violations are confirmed. They may also order an immediate end to any ongoing anti-competitive practices.

The investigation follows a canceled deal between Deutsche Boerse’s European Energy Exchange and Nasdaq’s Nordic power business. That proposed acquisition had raised earlier competition concerns within the bloc.

Deutsche Boerse’s shares dropped as much as 7.3% after the announcement, marking their sharpest fall since April 2023. Nasdaq also recorded a 2.3% decline during U.S. pre-market trading hours.

This case adds to a series of antitrust actions targeting financial services in Europe over the last decade. Past cases have involved manipulation of benchmarks and collusion among traders.

The Commission has emphasized that opening an investigation does not imply guilt. However, officials remain focused on enforcing fair competition across all European markets.