Deutsche Boerse's Clearstream loses appeal

Europe's second-highest court today upheld a decision by the European Commission that Deutsche Boerse's settlement arm Clearstream…

Europe's second-highest court today upheld a decision by the European Commission that Deutsche Boerse's settlement arm Clearstream had abused its dominant position.

"The Court of First Instance dismisses the action brought against the Commission's decision, finding that Clearstream unlawfully refused to provide certain financial services to Euroclear," the court said in a statement.

"Clearstream abused its dominant position on the market in the provision of primary clearing and settlement services related to securities issued in Germany," it added.

In 2004 the Commission, executive arm of the European Union, decided Clearstream had abused its dominant position by refusing to supply certain clearing and settlement services to Euroclear Bank and imposing discriminatory pricing for the bank.

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Clearstream contested this decision before the Court of First Instance in Luxembourg.

The EU executive had not fined Clearstream, citing a lack of community case law to deal with the competition analysis of clearing and settlement.

Clearstream is responsible for the execution of stock trading mainly in Frankfurt as well as on electronic exchange Xetra.

Reuters