Clearstream loses EC case
THE second-highest court in Europe yesterday upheld a ruling by the European Commission (EC) that Deutsche Boerse’s settlement arm Clearstream had abused its dominant market position.
The decision by the Luxembourg-based Court of First Instance poured cold water on Clearstream’s appeal against a 2004 EC ruling that it took advantage of its market share by refusing to supply clearing and settlement services to Euroclear Bank and charging discriminatory prices.
“The Court of First Instance dismisses the action brought against the Commission’s decision, finding that Clearstream unlawfully refused to provide certain financial services to Euroclear,” the court said.
“Clearstream abused its dominant position on the market in the provision of primary clearing and settlement services related to securities issued in Germany,” it added.
Clearstream did not incur a fine after the initial ruling, because the EC said there was insufficient community case law to conduct a proper analysis of clearing and settlement.
Clearstream, a wholly-owned subsidiary of Deutsche Boerse, is responsible for the execution of stock trading mainly in Frankfurt as well as on electronic exchange Xetra.
It was created in January 2000 with the merger of Cedel International and Deutsche Boerse Clearing and later bought out entirely by the Frankfurt stock exchange owner, which paid €1.6bn (£1.4bn) for the remaining 50 per cent in 2002.
The platform is no stranger to controversy, having been falsely accused in a 2001 book called Révélation$ of being an international hub for money laundering and tax evasion.