European Commission opens probe into possible financial cartel between Deutsche Börse and Nasdaq

Brussels – The European Commission has launched an antitrust investigation into potential collusion between Deutsche Börse and Nasdaq in the listing, trading, and clearing of financial derivatives within the European Economic Area (EEA). It is a severe accusation: according to the Commission, the two financial services companies may have entered into agreements not to compete, and to allocate demand, coordinate prices, and exchange sensitive information. 

In September of last year, the European Commission carried out surprise inspections at the headquarters of Deutsche Börse and Nasdaq in two EU member states. Today, the opening of the formal investigation into the possible breach of EU competition rules. In particular, Brussels, in a statement, cites Article 101 of the Treaty on the Functioning of the European Union and Article 53 of the EEA Agreement, which prohibit cartels and restrictive business practices. 

Anti-competitive agreements “can lead to market fragmentation” and “may impact, among others, the prices and quality of the goods and services offered, as well as the functioning of the Single Market.​, as well as on the functioning of the single market,” the European Commission stressed. Competition rules help secure fair and open competition among financial exchanges and ensure the proper functioning of the Capital Markets Union, a cornerstone for innovation, financial stability, and growth in the interest of all European citizens,” added Teresa Ribera, Executive Vice-President of the EU executive. 

These are two giants among financial services providers. Within the Deutsche Börse group, Eurex is the largest derivatives exchange in the European Economic Area. At the same time, US-based Nasdaq is a global provider of financial and technology services that operates stock exchanges in the US and Europe. 

The two companies were informed, as were the antitrust authorities of the Member States. As there is no legal deadline for concluding an antitrust investigation, the European Commission stated that it “will now carry out its in-depth investigation as a matter of priority.”