Deutsche Boerse proposes new rules for quick DAX expulsion in wake of Wirecard
If adopted, rules may mean Wirecard leaves DAX in August
Updates with details
FRANKFURT, July 17 (Reuters) - In the wake of the Wirecard WDIG.DE accounting scandal, exchange operator Deutsche Boerse DB1Gn.DE said on Thursday it was proposing rules to enable it to quickly expel companies from the leading DAX index if those firms file for insolvency.
The ruling, if adopted, could mean that Wirecard would leave the DAX index in August, rather than during a regular review of the index makeup in September.
Wirecard was promoted to the DAX index of 30 leading companies in 2018, displacing Commerzbank, as the fortunes of a rising technology star underscored the declining fortunes of the nation's top banks.
But in a dramatic fall from grace, Wirecard filed for insolvency last month owing creditors 4 billion euros ($4.55 billion) after disclosing a 1.9 billion euro hole in its accounts that its auditor EY said was the result of a sophisticated global fraud.
The rule change proposed by Deutsche Boerse would allow it to eject companies from the DAX two trading days after such news.
Deutsche Boerse is seeking feedback from market participants about the rules change by Aug. 7 and will make an announcement before Aug. 13.
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(Reporting by Hans Seidenstuecker and Tom Sims Editing by Michelle Martin)
((Tom.Sims@thomsonreuters.com; +49 69 7565 1242;))
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