Deutsche Börse

50.115°N 8.678°E / 50.115; 8.678

Deutsche Börse AG
TypePublic (Aktiengesellschaft)
IndustryFinance
Founded1992 (1992)[1]
HeadquartersFrankfurt am Main, Germany
Key people
ServicesEquity trading platforms, derivatives markets, clearing, market data
RevenueIncrease €4.34 billion (2022)[2]
Increase €2.17 billion (2022)[2]
Increase €1.49 billion (2022)[2]
Total assetsIncrease €269.1 billion (2022)[2]
Total equityIncrease €9.06 billion (2022)[2]
Number of employees
11,078 (FTE, end 2022)[2]
Subsidiaries360T, Frankfurt Stock Exchange, Clearstream, Xetra, Eurex, STOXX, Qontigo
Websitedeutsche-boerse.com

Deutsche Börse AG (German pronunciation: [ˈdɔʏtʃə ˈbœʁzə]), or the Deutsche Börse Group, is a German multinational that offers a marketplace for organizing the trading of shares and other securities. It is also a transaction services provider, giving companies and investors access to global capital markets. It is a joint stock company and was founded in 1992, with headquarters in Frankfurt. On 1 October 2014, Deutsche Börse AG became the 14th announced member of the United Nations Sustainable Stock Exchanges initiative.[3]

Company
The new building of Deutsche Börse called The Cube in Eschborn above S-train station Eschborn Süd with DB class 423 as S 4, heading for Langen (above)

More than 3,200 employees service customers in Europe, the United States, and Asia. Deutsche Börse has locations in Germany, Luxembourg, Switzerland, Czech Republic, and Spain, as well as representative offices in Beijing, London, Paris, Chicago, New York, Hong Kong, and Dubai.

FWB Frankfurter Wertpapierbörse (Frankfurt Stock Exchange), is one of the world's largest trading centers for securities. With a share in turnover of around 90%, it is the largest of the German stock exchanges. Deutsche Börse AG operates the Frankfurt Stock Exchange.[4]

Deutsche Börse is the owner of Clearstream, a clearing house based in Luxembourg.[5]

Despite the COVID-19 pandemic, Deutsche Börse was able to increase its turnover by 15% and its net revenue by 9% in 2020 compared to 2019. In addition, Deutsche Börse's workforce grew by 463 employees in 2020.[6]

Mergers and acquisitions

On 3 May 2000, it was announced that the London Stock Exchange would merge with Deutsche Börse, though the deal fell through before the merger could be realized.[7]

In 2001, Deutsche Börse tried again to merge with the London Stock Exchange, followed by a takeover bid in late 2004, but both offers rejected by the LSE.[8] After CEO Werner Seifert was forced to resign by the main shareholders in 2005, Deutsche Börse changed plans and entered into advanced negotiations for a merger with Euronext which would have brought two of the biggest stock exchanges in Europe into one holding. The New York Stock Exchange beat out Deutsche Börse's final bid for Euronext in 2006.

Since 2007, Deutsche Börse operates the joint venture Scoach with SIX Swiss Exchange to provide a European derivative trading platform.[9]

In July 2015, Deutsche Börse bought the 360T company for €725 million[10] and also acquired all shares (100%) of the joint venture STOXX AG for a purchase price of CHF 650 million from the SIX Group.[11]

On September 16, 2019, Deutsche Börse has announced its acquisition of Axioma Inc. which was combined with STOXX and DAX to form Qontigo.[12] As part of the transaction, Deutsche Börse has entered into a strategic partnership with General Atlantic, a global equity firm.[13]

In March 2022, Deutsche Börse announced the acquisition of 100% of Luxembourg-based fund data manager Kneip.[14]

In April 2023, Deutsche Börse agreed to buy Danish investment management software firm SimCorp for €3.9 billion.[15]

In August 2023, Deutsche Börse announced the acquisition of the Luxembourg-based distributed ledger technology company, FundsDLT.[16]

Attempted NYSE Euronext merger

On 7 December 2008, Deutsche Börse rebuffed rumors that it might join with NYSE Euronext (the company formed as a result of the merger of NYSE and Euronext) to create the world's leading stock exchange.[17] While the company claims that it pursued the matter, on 8 December 2008, it reported that talks which began on 25 November 2008, were closed without any result due to differences in valuation of the company.[18]

Deutsche Börse had also considered the acquisition again in 2009.

On 9 February 2011, reports suggested that NYSE Euronext and Deutsche Börse were in advanced talks about an all-stock merger.[19] Deutsche Börse was in advanced talks to buy NYSE Euronext in a deal that would create the world's largest trading powerhouse. The shares of both companies were temporarily frozen on the news due to the risk of large price movements and clarifications of the deal. A successful deal would see the new company becoming the world's largest stock exchange operator with a market capitalisation of listed companies equal to US$15 trillion, US$13.39 trillion of which is part of the much larger NYSE Euronext, which is approximately six times the size of Deutsche Börse.

President and deputy CEO of NYSE Euronext Dominique Cerutti would become the new company's president and head of commercial and internal technology. Roland Bellegarde, also of NYSE Euronext, would become the head of European cash equities. The new company would potentially have €300 million (US$410 million) in cost savings. However, the merger would be subject to review in both the United States and European Union under concerns it could create a "de facto monopoly".[20] NYSE Euronext shareholders approved the Deutsche Börse's all-stock deal on 7 July 2011,[21] and Deutsche Börse shareholders had accepted the deal by 15 July 2011.[22]

On 22 December 2011, Deutsche Boerse won U.S. antitrust approval to buy NYSE Euronext, on the condition that a Deutsche Börse subsidiary, the International Securities Exchange, divest its 31.5% interest in Direct Edge.[23] NYSE Euronext and Deutsche Boerse AG delayed the deadline for completing their merger until 31 March 2012, as the exchange operators try to persuade European regulators to approve the deal.[24]

The European Commission blocked the merger on 1 February 2012, citing the fact that the merged company would have a near monopoly.[25] This measure taken by the EC is the fourth blocking in over a decade.[26] The commission rejected the merger on antitrust grounds, saying the combined businesses would dominate Europe's on-exchange derivatives trading with an estimated 93% market share. "This is a black day for Europe and its global competitiveness on financial markets", said former Deutsche Börse chief executive Reto Francioni. NYSE Euronext chairman Jan-Michiel Hessels said: "While we are disappointed and strongly disagree with the EU decision, which is based on a fundamentally different understanding of the derivatives market, it is now time to move on".[27]

Failed merger with London Stock Exchange Group

In March 2016, the company announced it had reached an agreement with London Stock Exchange Group to merge.[28] The companies were to be brought under a new holding company, with a temporary placeholder name of UK TopCo, and would have retained both headquarters in London and Frankfurt. The deal needed approval from regulators in the European Union, the U.S. and Russia. The London Stock Exchange said Russian approval was needed because it owns Exactpro, a firm with offices in Russia specializing in quality assurance for exchanges and financial organizations.[29] The European Commission opened an in-depth investigation into the proposed Deutsche Börse/LSEG merger on 28 September 2016.[30] The European Commission delayed its decision on the deal by 15 working days to 6 March 2017. LSEG planned to hive off the French half of its LCH SA arm in a bid to ease EU concerns about the deal, although the companies had not formally submitted any concessions to the Commission.[31]

In February 2017, the Commission required that the parties commit to the divestment of LSEG's majority stake in fixed-income sovereign bond trading platform MTS S.p.A. LSEG stated it would not sell MTS in Italy to appease anti-trust concerns.[32] The planned merger between the two exchanges, which was estimated to create the largest exchange in Europe, was subsequently described as "at risk" by The Wall Street Journal.[33] The merger attempt was blocked by EU Competition Regulator on 29 March 2017 stating that "The Commission's investigation concluded the merger would have created a de facto monopoly in the markets for clearing fixed income instruments".[34]

Recent

In October 2017, several shareholders called for the resignation of the chairman.[35]

On 16 November 2017, Theodor Weimer was appointed as new CEO of Deutsche Börse AG,[36] effective January 2018.

Art collection

Deutsche Börse Group is a major sponsor of contemporary photography. In 1999, the Group established the Art Collection Deutsche Börse, which today comprises more than 900 mostly large size works from around 90 international artists. In 2005, the stock exchange became the sponsor of the annually awarded Deutsche Börse Photography Prize of the Photographers' Gallery in London, which was started up in 1996 by the gallery, to promote the best work by contemporary photographers.

Charity involvement

Deutsche Börse Group have participated in and sponsored many events, including Futures For Kids Annual Football Tournament (held in the London Docklands, England). The event raised £2.6 million for charity and included firms such as Marex Spectron, Trading Technologies, Futex, Oak Futures and the London Metal Exchange.[37]

References
  1. "Deutsche Börse Group - Company history". Archived from the original on 6 August 2013. Retrieved 14 December 2012.
  2. "Deutsche Börse Group - Annual report 2022" (PDF). Deutsche Börse. Archived (PDF) from the original on 12 June 2023. Retrieved 26 August 2023.
  3. "Deutsche Börse joins UN's Sustainable Stock Exchanges Initiative". FTSE. Deutsche Börse. Archived from the original on 4 October 2014. Retrieved 2 October 2014.
  4. "Quick Summary | Frankfurt Stock Exchange | Cross-Border Listings Guide | Baker McKenzie Resource Hub". resourcehub.bakermckenzie.com. Retrieved 19 January 2023.
  5. "EU blocks LSE-Deutsche Boerse merger amid Brexit jitters". Luxembourg Times. 11 December 2017. Retrieved 19 January 2023.
  6. "Geschäftsbericht 2020. (PDF) Deutsche Börse" (PDF).
  7. "2000: Leading stock exchanges plan merger". 3 May 2000. Archived from the original on 7 March 2008. Retrieved 21 June 2017.
  8. "London Stock Exchange's tumultuous history of bids". The Daily Telegraph. 2 September 2011. Archived from the original on 7 September 2013. Retrieved 8 October 2013.
  9. "In respect of the description of Eurex Group, a derivatives exchange business jointly owned by Deutsche Börse and SIX Swiss Exchange AG, contained in the Offer Document, the following is published". www.businesswire.com. 16 June 2011. Retrieved 19 January 2023.
  10. Alexander Hüsing (27 July 2015). "Deutsche Börse schluckt Devisenplattform 360T". German Startups Group (in German). Archived from the original on 1 December 2017. Retrieved 20 November 2017.
  11. "Gruppe Deutsche Börse - Erfolgreicher Abschluss der Verhandlungen zum vollständigen Erwerb der STOXX AG und Indexium AG von der SIX Group". deutsche-boerse.com (in German). Archived from the original on 1 December 2017. Retrieved 20 November 2017.
  12. "Deutsche Boerse launches financial intelligence company following Axioma acquisition". ETF Stream. 15 July 2020. Archived from the original on 16 July 2021. Retrieved 16 July 2021.
  13. Team, Finadium Editorial (18 September 2019). "Deutsche Börse launches Qontigo, a combo of Axioma, STOXX and DAX – Finadium". Archived from the original on 7 June 2021. Retrieved 16 July 2021.
  14. "Deutsche Börse to acquire fund data manager Kneip". Finextra Research. 28 March 2022. Archived from the original on 28 March 2022. Retrieved 28 March 2022.
  15. Farr, Emma-Victoria; Masoni, Danilo (27 April 2023). "Deutsche Boerse offers $4.3 billion for Denmark's SimCorp". Reuters.
  16. "Deutsche Börse Group to acquire FundsDLT". Finextra Research. 3 August 2023. Retrieved 3 August 2023.
  17. https://news.yahoo.com/s/ap/20081207/ap_on_bi_ge/eu_germany_deutsche_boerse_nyse;_ylt=AsauGZb2LtlsfwROcCUexTmyBhIF
  18. Simon Kennedy. "Discussions ended without agreement". Retrieved 9 December 2008.
  19. Bunge, Jacob (10 February 2011). "NYSE, Deutsche Börse Talk Tie-Up as Competition Intensifies". The Wall Street Journal. Archived from the original on 19 February 2017. Retrieved 3 August 2017.
  20. Kirchfeld, Aaron; Sukumar, Nandini; Kearns, Jeff (9 February 2011). "Deutsche Boerse in Advanced Talks to Buy NYSE Euronext". Bloomberg. Archived from the original on 4 March 2014. Retrieved 6 March 2017.
  21. "NYSE-Deutsche Börse deal clears U.S. hurdle". Financial Times. Archived from the original on 10 July 2011. Retrieved 24 July 2011.
  22. Bunge, Jacob (15 July 2011). "Deutsche Börse Wins 82% Backing for NYSE Deal". The Wall Street Journal. Archived from the original on 24 March 2021. Retrieved 24 July 2011.
  23. Bartz, Diane (22 December 2011). "Deutsche Boerse, NYSE deal wins U.S. approval". Reuters. Archived from the original on 22 June 2021. Retrieved 5 July 2021.
  24. NYSE, Deutsche Boerse Merger Date Extended Archived 3 November 2013 at the Wayback Machine, Bloomberg, 28 December 2011. Retrieved 9 January 2012.
  25. "Mergers: Commission blocks proposed merger between Deutsche Börse and NYSE Euronext" Archived 4 February 2012 at the Wayback Machine, European Commission press release, 1 February 2012.
  26. Mergers Archived 5 March 2012 at the Wayback Machine
  27. "NYSE Euronext merger with Deutsche Boerse blocked by EU" Archived 11 January 2023 at the Wayback Machine, BBC, 1 February 2012.
  28. John Detrixhe (16 March 2016). "London Stock Exchange, Deutsche Boerse Agree on Merger". Bloomberg.com. Archived from the original on 15 February 2020. Retrieved 1 November 2016.
  29. "European stock exchanges agree to $30 billion merger". Daily Herald. Associated Press. 16 March 2016. Archived from the original on 11 January 2023. Retrieved 1 November 2016.
  30. "European Commission - Press release - Mergers: Commission opens in-depth investigation into proposed Deutsche Börse/LSE merger". europa.eu. Archived from the original on 4 November 2016. Retrieved 1 November 2016.
  31. "EU extends LSE-Deutsche Boerse merger review until March 6". Reuters. 21 October 2016. Archived from the original on 3 November 2016. Retrieved 1 November 2016.
  32. "Deutsche Boerse-LSE Deal in Danger as EU Demand Rejected". Bloomberg.com. 26 February 2017. Archived from the original on 5 March 2017. Retrieved 4 March 2017.
  33. Dummett, Ben (27 February 2017). "London Stock Exchange Merger With Deutsche Börse at Risk Over Antitrust Issues". The Wall Street Journal. New York City. Archived from the original on 27 February 2017. Retrieved 27 February 2017.
  34. "European Commission - Press release - Mergers: Commission blocks proposed merger between Deutsche Börse and London Stock Exchange". europa.eu. Archived from the original on 29 March 2017. Retrieved 21 July 2017.
  35. Storbeck, Olaf; Stafford, Philip (29 October 2017). "Two shareholders call for resignation of Deutsche Börse chairman". Financial Times. London. Archived from the original on 11 December 2022. Retrieved 29 October 2017.
  36. "Theodor Weimer appointed as new CEO of Deutsche Börse AG". Deutsche Börse Press releases. Archived from the original on 11 February 2019. Retrieved 20 November 2017.
  37. "Futures for Kids News: Football Tournament". Futures For Kids. 26 March 2012. Archived from the original on 10 August 2012. Retrieved 26 July 2012.
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