Exclusive: Germany shields parts of Deutsche Börse from EU oversight
The EU is negotiating a reform in Brussels to better integrate its capital markets. Germany has secured an exemption for major European operator Deutsche Börse’s domestically focused trading venues from centralised supervision, leaving a key part of the system under regional control.
Deutsche Börse has successfully lobbied Germany to retain regional supervision over some of its trading venues, according to two sources familiar with the negotiations. The Irish government, currently leading discussions among member states, has included this carve-out in the latest compromise text. This move could potentially weaken the proposed reform or delay an agreement on capital markets integration, a key legislative package aimed at enhancing Europe's global economic competitiveness.
The reform aims to cede supervisory power to the European Securities and Markets Authority (ESMA), but the exclusion of certain Deutsche Börse trading venues from direct ESMA supervision has faced opposition from other member states. The German government clarified that the exemption would only apply to trading venues with a primary domestic focus, not the entire Deutsche Börse Group.
Deutsche Börse's financial market infrastructure entities, including clearing houses and central securities depositories, will come under direct ESMA supervision from the start. While the reform is part of the EU's Savings and Investments Union strategy to reduce fragmentation, its success depends on overcoming opposition from other member states seeking similar exemptions.
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