Germany secures regional oversight for parts of Deutsche Börse

Germany has successfully lobbied for an exception in the European Union’s proposed capital markets reform, allowing certain trading venues within the Deutsche Börse Group to remain under regional rather than centralized supervision.

According to sources familiar with the negotiations, the Irish government, which is currently leading discussions among member states, included this exception in a recent compromise text. The reform aims to strengthen the EU’s global economic competitiveness by integrating capital markets and transferring supervisory responsibilities to the European Securities and Markets Authority (ESMA).

The proposal to exempt specific trading venues of the Deutsche Börse from direct ESMA oversight has met with opposition from several member states, potentially delaying the goal of reaching an agreement by the end of the year. The German government clarified that the exemption is intended only for trading venues with a predominantly domestic focus and does not apply to the entire Deutsche Börse Group. Financial market infrastructures, such as central counterparties (CCPs) and central securities depositories (CSDs), will remain under direct ESMA supervision from the outset.

EU economic and finance ministers are scheduled to meet on October 9 to discuss the reform and attempt to reach a consensus.