The EU’s competition authority is examining a possible agreement between two stock exchange groups concerning derivatives, suggesting it might contravene European regulations intended to promote competition within the EU market.
On Thursday, the Commission initiated an inquiry into possible collusion between Deutsche Börse and Nasdaq in the market of derivative financial instruments.
The primary focus of the EU antitrust enforcer lies in the suspected alignment of their activities in listing, trading, and clearing these derivatives, which if confirmed, would breach the EU’s competition legislation.
EU legislation promotes rivalry among economic operators to ensure market-driven pricing, free from coordination or misuse of market dominance.
In September 2024, the Commission conducted surprise inspections at the offices of both financial groups, as authorised under EU protocols.
These inspections targeted their conduct relating to financial derivatives, which are contracts whose value varies in response to the price fluctuations of other assets such as stocks or commodities.
«Deutsche Börse and Nasdaq entities might have formed agreements or engaged in concerted actions to avoid competition,” the Commission stated, «furthermore, they may have divided demand, aligned prices, and exchanged sensitive commercial information.»
An agreement established in 1999
Deutsche Börse and Nasdaq rank among the world’s leading stock exchange operators.
According to EU competition commissioner Teresa Ribera, such conduct could undermine “the effective operation of the Capital Markets Union – a fundamental element for innovation, financial stability and growth.”
One of the core goals of Commission President Ursula von der Leyen is the completion of the European Capital Markets Union — a unified capital market intended to lower costs for listed firms and enhance investment conditions.
Should collusion between Deutsche Börse and Nasdaq be confirmed, it would represent “an artificial barrier” within the EU market, Commission spokesperson Thomas Regnier told Euronews.
Deutsche Börse responded with a statement: “We are cooperating constructively with the European Commission.”
The exchange group clarified that the probe relates to a 1999 agreement, which Deutsche Börse regards as “pro-competitive.”
“The agreement was designed to deepen liquidity in the respective Nordic derivatives markets and improve efficiencies,” it explained, adding: “It offered clear advantages for market participants and was publicly disclosed.”
This 1999 agreement was entered into between Deutsche Börse’s derivatives division Eurex and the Helsinki Stock Exchange, acquired by Nasdaq in 2008, specifically covering the Nordic derivatives markets, the statement added.