EU Launches Full Probe Into Deutsche Boerse, Nasdaq Over Derivatives Cartel Allegations
Europe's competition watchdog has escalated scrutiny of Deutsche Boerse AG and Nasdaq Inc., launching a formal antitrust investigation into alleged collusion in derivatives markets. The probe centers on suspicions of price coordination, market division, and sensitive data sharing between the exchanges' derivatives arms.
Market reactions were immediate and severe. Deutsche Boerse shares plunged 7%, their steepest decline in two years, while Nasdaq slipped 1.7% in pre-market trading. The investigation revives concerns about fair competition in financial markets and regulatory tolerance for cooperative agreements between major players.
At issue is a 1999 cooperation pact between Deutsche Boerse's Eurex and Nasdaq's acquired Finnish exchange HEX. Both firms maintain the arrangement was above board, with Nasdaq noting the European Commission previously raised no objections during the active cooperation period.
