Deutsche Börse C.E.O. to Resign Amid Insider Trading Scandal
- 7 years ago
Deutsche Börse C.E.O. to Resign Amid Insider Trading Scandal
The exchange operator said last month, when it agreed to pay fines to resolve the German investigation,
that it did not “share the public prosecutor’s view concerning the accusations raised,” but “the decision to nevertheless accept the fines was made for the purpose of protecting the overriding interests of the company.”
It is rare to see a top exchange executive forced out by concerns about their conduct.
“In the light of the public accusations and allegations, I am taking this step to protect Deutsche Börse.”
In March 2016, Deutsche Börse and the London Stock Exchange Group agreed to merge in an all-stock deal
that they hoped would forge a European heavyweight in a rapidly consolidating industry.
On Thursday, Deutsche Börse said in a news release
that Mr. Kengeter had offered his resignation “in order to allow the company to focus its energy back onto clients, business and growth and to avoid further burdens caused by the ongoing investigation.”
He will lead the exchange on an interim basis until the end of this year and still has “the supervisory board’s full confidence,” Deutsche Börse said.
Deutsche Börse agreed last year to merge with the London Stock Exchange Group, and Mr. Kengeter was to lead the combined company.
German authorities had been investigating the purchase of stock by Mr. Kengeter in late 2015, months
before Deutsche Börse’s talks to merge with the London Stock Exchange Group became public.
Deutsche Börse said Thursday that its chief executive would step down amid an insider trading scandal, the latest step in an unprecedented
and distracting chapter at one of the world’s biggest stock exchanges.
The exchange operator said last month, when it agreed to pay fines to resolve the German investigation,
that it did not “share the public prosecutor’s view concerning the accusations raised,” but “the decision to nevertheless accept the fines was made for the purpose of protecting the overriding interests of the company.”
It is rare to see a top exchange executive forced out by concerns about their conduct.
“In the light of the public accusations and allegations, I am taking this step to protect Deutsche Börse.”
In March 2016, Deutsche Börse and the London Stock Exchange Group agreed to merge in an all-stock deal
that they hoped would forge a European heavyweight in a rapidly consolidating industry.
On Thursday, Deutsche Börse said in a news release
that Mr. Kengeter had offered his resignation “in order to allow the company to focus its energy back onto clients, business and growth and to avoid further burdens caused by the ongoing investigation.”
He will lead the exchange on an interim basis until the end of this year and still has “the supervisory board’s full confidence,” Deutsche Börse said.
Deutsche Börse agreed last year to merge with the London Stock Exchange Group, and Mr. Kengeter was to lead the combined company.
German authorities had been investigating the purchase of stock by Mr. Kengeter in late 2015, months
before Deutsche Börse’s talks to merge with the London Stock Exchange Group became public.
Deutsche Börse said Thursday that its chief executive would step down amid an insider trading scandal, the latest step in an unprecedented
and distracting chapter at one of the world’s biggest stock exchanges.