The European Union said on Thursday it opened a formal antitrust probe against stock exchange operators Nasdaq and Deutsche Boerse over "possible collusion" involving financial derivatives.
The European Commission said it suspected U.S.-headquartered Nasdaq and Germany's Deutsche Boerse "may have entered into agreements or concerted practices not to compete" in the EU when dealing with certain derivatives.
"We are investigating whether Deutsche Boerse and Nasdaq may have colluded to avoid competing for the listing, trading and clearing of certain financial derivatives," EU competition chief Teresa Ribera said in a statement.
"Competition rules help secure fair and open competition among financial exchanges."
The announcement of the probe comes after EU investigators carried out raids on the two firms in September as a preliminary step.
The commission said that "if proven, this behavior may breach EU competition rules that prohibit cartels and restrictive business practices."
"The commission will now carry out its in-depth investigation as a matter of priority. The opening of a formal investigation does not prejudge its outcome," the statement said.
Financial derivatives are financial contracts whose value is derived from the performance of underlying assets such as bonds, stocks or commodities.
Deutsche Boerse said later during the day it was "engaging constructively" with the EU after the bloc opened the probe.
