Deutsche Börse Probe Expanding to Include Management

Any hopes Deutsche Börse had of a quick resolution after last month’s settlement of a trading probe were summarily crushed as Frankfurt prosecutors expanded an ongoing investigation. Initially, an investigation was looking into Deutsche Börse CEO Carsten Kengeter’s role in share purchases, however the probe has now expanded to all leading management.

Register now to the London Summit 2017, Europe’s largest gathering of top-tier retail brokers and institutional FX investors

Originally launched back in February 2017 by German prosecutors, the probe focused on Mr. Kengeter, alleging insider trading of company stock. The timing of share purchases had been suspect given its proximity to the ultimately doomed bid and merger with the London Stock Exchange Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin Read this Term (LSE).

For his part, Mr. Kengeter has towed the same line since the investigation was first brought to light, firmly shooting down any such allegations. Over the past few months he has on multiple occasions reiterated that any insider charges against him would prove totally unfounded and that he had no role in dictating the timing of his share purchases with the announced merger plans with the LSE.

Last month’s settlement gave little credence to his stance – allegations had extended back to a 2015 purchase of over $4.85 million of Deutsche Börse shares at the onset of merger talks with the LSE. While Deutsche Börse was hit with a $12.3 million (€10.5 million fine), Mr. Kengeter was not cleared of all wrongdoing with the investigation left still open and ongoing.

Reliability of management being questioned

Fast-forwarding to the present, German investigators are now examining not just Mr. Kengeter but all of the group’s management, according to an FT report. In particular, domestic authorities are opening up a broader investigation into the ‘reliability’ of Deutsche Börse’s currently installed management in running the exchange.

The timing of the expanded probe is noteworthy given that Mr. Kengeter’s contract is up for renewal in March 2018. Any lingering uncertainty, or worse, expanded charges could complicate the decision to keep him on. However, Deutsche Börse chairman Joachim Faber has already stated he wants to keep Mr. Kengeter in his current role.

Deutsche Börse is hoping for a quick and speedy resolution, as it looks into a potential expansion of a euro interest rate Swaps Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Read this Term clearing business.