Commission investigates possible collusion between Deutsche Börse and Nasdaq

The European Commission launched on Thursday an investigation into potential collusion between the two stock exchange groups, Deutsche Börse and Nasdaq, in the market for derivative financial products.

At the heart of the EU antitrust enforcer’s concerns is the possible coordination of their conduct in the listing, trading, and clearing of those derivatives, which, if proven, would be in violation of competition rules.

EU law encourages competition between different economic operators to ensure that prices are set fairly by the market, free from collusion or abuse of a company’s dominant position.

In September 2024, the Commission carried out an unannounced inspection at the premises of both financial groups, which is permitted under EU rules.

It targeted their practices around financial derivatives, which are contracts whose value changes depending on the price of another asset, such as stocks or commodities.

“Deutsche Börse and Nasdaq entities may have entered into agreements or concerted practices not to compete,” the Commission said in a statement, “in addition, the entities may have allocated demand, coordinated prices and exchanged commercially sensitive information.”

Deutsche Börse and Nasdaq are among the world’s largest stock exchange groups.

According to EU competition commissioner Teresa Ribera, such behaviours could also affect “the proper functioning of the Capital Markets Union – a cornerstone for innovation, financial stability and growth.”

The completion of the European Capital Markets Union — a barrier-free market for capitals aimed at reducing their costs for listed companies and improve investment conditions — is one of the priorities of Commission President Ursula von der Leyen.

If there was collusion between Deutsche Börse and Nasdaq, it would constitute “an artificial barrier” on the EU market, Commission’s spokesperson Thomas Regnier told Euronews on Thursday.

Deutsche Börse responded in a statement saying: “We are engaging constructively with the European Commission.”

The stock exchange group said that the Commission’s investigation concerned a deal agreed in 1999, which Deutsche Börse considers “pro-competitive”.

“It aimed to build deeper liquidity in the respective Nordic derivatives markets and create efficiencies,” it argued, adding: “It provided clear benefits for market participants and was public.”

The deal was originally made between Deutsche Börse’s derivatives branch Eurex and the Helsinki Stock Exchange, which was acquired by Nasdaq in 2008, for the Nordic derivatives markets, it said.