Deutsche Börse raided over EU derivatives cartel investigation – The Irish Times

Deutsche Börse said on Wednesday it had been investigated by European Union (EU) competition authorities who suspect the company may have been involved in a cartel involving “financial derivatives.”

A spokesman confirmed the company had been the victim of unannounced EU inspections on Monday and that it was “cooperating fully” with the investigation.

The European Commission said the raids took place in two EU countries and the companies involved may have “breached EU antitrust rules banning restrictive business practices.” Officials did not provide any further details.

While so-called “dawn raids” can be a precursor to fines of up to 10% of a company’s global sales, regulators rarely impose fines of that size. The EU’s antitrust watchdog has also said that while the companies are suspected, they are not yet guilty of any wrongdoing. There is no legal deadline for the commission to conclude its investigation.

The sweeps are the latest in a decade of EU probes into the financial sector and key benchmarks – including how investors shared information in chat rooms to distort the components of derivatives prices, and to manipulate euro-denominated bonds and government-guaranteed securities.

The investigations were launched after the EU approved a government bailout to keep many European lenders afloat during the financial crisis following the collapse of Lehman Brothers Holdings in 2008. – Bloomberg