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Regulation

Deutsche Bourse to pay €10.5 million to settle insider-trading allegations

Deutsche Bourse Chairman Carsten Kengeter

Deutsche Bourse agreed to pay a combined €10.5 million ($12.5 million) to settle accusations by the Frankfurt public prosecutor that it violated an insider-trading ban.

Despite accepting the charges, Deutsche Bourse did not accept the responsibility for the prohibited insider trading, which allegedly took place in December 2015, stating that external "analyses did not find any elements indicating a violation of capital market rules."

The German exchange said in a news release it will pay two fines of €5 million and €5.5 million under separate proceedings and expects current investigation against the chairman of its executive board, Carsten Kengeter, to be closed.

The Frankfurt public prosecutor was investigating Mr. Kengeter for purchasing company shares in December 2015, before the exchange embarked on talks about all-share merger with London Stock Exchange Group. The merger was ultimately blocked by the European Commission in March.

"We did not take this decision lightly. It has been one of the most difficult decisions I have faced together with my colleagues of Deutsche Bourse AG's supervisory board. By making this decision, we have established the prerequisites for the closure of the proceedings," Joachim Faber, chairman of Deutsche Bourse's supervisory board, said in the release.

"It is incumbent upon the local court to rule on this. Subsequently, the ... supervisory authority will carry out their reliability assessments. Only afterwards will the supervisory board of Deutsche Bourse be addressing the subject of the contract renewal with Carsten Kengeter," Mr. Faber added.