Germany’s Federal Financial Supervisory Authority (BaFin) has approved the merger of Deutsche Börse and NYSE Euronext. With BaFin’s decision, the merger has reached an important regulatory milestone in Germany.
The BaFin examination is comparable to the shareholder control procedure by the stock exchange regulators. It concerns a significant acquisition of shares in the banks and financial services institutions of the Deutsche Börse Group by the parent company of the new group (Holdco) headquartered in the Netherlands, and the permissibility of this acquisition. This particularly includes Clearstream Banking AG as the central settlement institution for securities transactions, and Eurex Clearing AG as the central counterparty for the derivatives exchange Eurex.
Among other things, BaFin’s examination involved assessing the reliability of the Dutch Holdco and its financial solidity. BaFin’s overall conclusion was that there are no grounds against the merger in Germany in terms of banking supervisory regulations.
The transaction remains subject to further conditions being met, such as approval by the responsible EU competition authorities and by responsible exchange supervisory authorities.