EU Accepts Concessions from Markit and ISDA in Deutsche Börse Probe

Finance Magnates has learned that EU antitrust regulators have accepted concessions from financial information company Markit and trade body International Swaps and Derivatives Association (ISDA) to settle charges that they obstructed rivals from the lucrative credit derivatives market.

Charges

The European Commission charged the two firms along with 13 banks with blocking Deutsche Börse from the credit default swaps market in 2007 and the Chicago Mercantile Exchange in 2008.

While the banks involved were dropped from the case last year, Markit and the ISDA subsequently offered concessions to settle the case despite the fact there was no finding of wrongdoing or possible fines.

The proposal includes the companies offering rights on fair and reasonable terms and being willing to use an arbitrator to resolve disputes. The commitments will apply for 10 years.

The Commission said: "The commitments address these concerns as they will make it easier to trade CDS on exchanges, while improving transparency. The increased efficiency and stability in the market for credit derivatives will benefit investors such as mutual funds, pension funds and insurers”.