The Frankfurt public prosecutor has extended the deadline for Deutsche Börse AG to prepare its official response to the proceedings against its CEO, Carsten Kengeter, who is being investigated for insider trading, Handelsblatt reported Aug. 7, without naming sources.
The CEO is subject of two ongoing investigations, by the Frankfurt prosecutor and the stock exchange regulator of the state of Hesse. The prosecutor is looking into Kengeter's purchase of shares in Deutsche Börse just weeks before it officially began merger talks with London Stock Exchange Group Plc.
The stock exchange regulator on its part wants to assess Kengeter's credibility, but it said Aug. 7 that it will wait for Deutsche Börse's response before making a decision, according to Handelsblatt.
The stock exchange group has until the middle of September to respond, while earlier the prosecutor was expecting to hear from the company by the middle of August.
In July, the prosecutor's office informed Deutsche Börse it could be fined for a total of €10.5 million because of the suspected insider trading and a belated ad hoc message to investors informing them about the merger with LSE Group. While Deutsche Börse initially indicated that the fines may end the proceedings against its CEO, the prosecutor rejected the suggestion, saying the probe will continue.