Deutsche Boerse agrees to pay a bumper €10.5m in fines to close the door on chief executive insider trading investigation

 
Rebecca Smith
The firm said it assumed the investigation into chief Carsten Kengeter would be brought to a close
The firm said it assumed the investigation into chief Carsten Kengeter would be brought to a close (Source: Getty)

Deutsche Boerse has agreed to pay two fines totalling €10.5m (£9.5m) to settle a Frankfurt prosecutor's investigation into potential insider trading by its boss Carsten Kengeter.

The German exchanges operator said it wants to "re-focus as quickly as possible on managing the business and leave behind the serious burdens" placed on it by the investigation proceedings.

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The firm said it had agreed to pay two fines, of €5m and €5.5m under separate proceedings, accepting a proposal made by the prosecutor in July on the insider trading, and a related penalty for alleged failure to reveal market-sensitive information in early 2016, ahead of its prospective merger with the London Stock Exchange Group.

Deutsche Boerse however, said it did not share the prosecutor's view concerning the accusations raised.

"The decision to nevertheless accept the fines was made for the purpose of protecting the overriding interests of the company," Deutsche Boerse said in a statement.

Deutsche Boerse assumes the current investigation proceedings against Kengeter will be closed subject to conditions, which City A.M. understands could include a small personal payment paid by Kengeter.

In February, it was announced that German prosecutors were investigating Kengeter over possible insider trading. The Deutsche Boerse boss bought around €4.5m of stock in his own firm, around two months before the German exchange announced merger talks with the London Stock Exchange.

Deutsche Boerse said the purchase was related to its remuneration programme and Kengeter bought the shares ahead of a December deadline set by the group's management remuneration programme.

The proposed merger was derailed in March, when the European Commission blocked the deal, saying it would have created a "de facto monopoly".

The Commission said the merged company would have owned stock exchanges in the UK, Germany, Italy, as well as several of Europe’s largest clearing houses.

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