EU Launches Antitrust Probe into Deutsche Boerse and Nasdaq

The European Commission has initiated a formal antitrust investigation into Deutsche Boerse AG and Nasdaq Inc., scrutinizing potential non-competitive agreements that may have distorted derivatives trading across European markets. The probe centers on a 1999 cooperation deal between Deutsche Boerse's Eurex unit and Nasdaq's predecessor, HEX, with regulators suspecting violations of EU competition laws.

Market reaction was swift and severe. Deutsche Boerse shares plunged over 7%, their sharpest decline in nearly two years, while Nasdaq saw pre-market dips in U.S. trading. The selloff reflects mounting concerns over Europe's escalating regulatory crackdown on financial institutions.

Both exchanges deny wrongdoing, with Nasdaq defending the arrangement as "transparent and previously approved by Brussels," while Deutsche Boerse framed it as a liquidity-enhancing measure for Nordic markets. The investigation follows unannounced raids last year, signaling regulators' prolonged preparation for this case.