The European Commission has initiated a formal antitrust investigation to determine whether Deutsche Börse and Nasdaq have violated EU competition regulations by coordinating their activities in the listing, trading, and clearing of financial derivatives within the European Economic Area (EEA).
Both Deutsche Börse and Nasdaq are prominent financial services providers that operate substantial exchanges in the financial derivatives market.
The Commission has expressed concerns that these entities may have engaged in agreements or concerted practices that restrict competition in the EEA regarding certain derivatives.
Furthermore, there are apprehensions regarding potential actions such as: (i) allocating demand, (ii) coordinating pricing strategies, and (iii) exchanging commercially sensitive information. Should these allegations be confirmed, they may constitute violations of EU competition rules, which prohibit cartels and restrictive business practices, as established in Article 101 of the Treaty on the Functioning of the European Union (TFEU) and Article 53 of the EEA Agreement.
“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 ensuring the proper functioning of the Capital Markets Union – a cornerstone for innovation, financial stability and growth in the interest of all European citizens,” said Commissioner Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition.
Such anticompetitive agreements and practices pose the risk of market fragmentation. They could negatively impact the pricing and quality of goods and services offered, as well as the overall functioning of the Single Market. This investigation is a crucial part of the Commission’s commitment to fostering a fair and open Single Market and a fully integrated Capital Markets Union, thereby benefiting investors, businesses, and consumers.
Promoting more efficient and competitive financial markets within the European Union is vital to achieving broader objectives related to growth and competitiveness.
The Commission will prioritise this in-depth investigation. It is important to note that the initiation of a formal investigation does not imply any presumption regarding its outcome.
