Deutsche Börse to pay fine of €10.5m
Deutsche Börse chief executive Carsten Kengeter is set to personally pay a penalty of about €500,000 as part of the exchange’s plan to swiftly end the long-running investigation into his alleged insider trading.
The group, Europe’s largest bourses operator by market capitalisation, made its move to end the seven-month inquiry late on Wednesday by agreeing to pay penalties totalling €10.5 million.
It also said it would not discuss whether it would renew Mr Kengeter’s contract – which expires in March next year – until after all the regulatory investigations triggered by the episode had been concluded.
The Frankfurt prosecutor has proposed two fines, €5 million related to the insider trading investigation and €5.5 million related to an alleged failure to disclose market-sensitive information before Deutsche Börse publicly confirmed plans to merge with the London Stock Exchange Group (LSEG) in early 2016.
The deal was blocked by European antitrust regulators this year.
Mr Kengeter’s payment is in addition to the €10.5 million penalty. His spokesman declined to comment.
Raided his home
In February authorities raided Mr Kengeter’s home and office as part of the inquiry into his purchase of 60,000 shares worth about €4.5 million in December 2015, weeks before formal talks between Deutsche Börse and the LSEG began. When the news became public in February 2016, shares in both exchanges rose.
The share purchases were part of the company’s long-term incentive scheme and cannot be sold until 2019. Mr Kengeter has consistently denied any wrongdoing.
In agreeing to settle, Deutsche Börse said it assumed the investigation into Mr Kengeter would be closed, subject to additional conditions being approved.