FRANKFURR (BLOOMBERG) – After Wirecard’s collapse, Deutsche Boerse is replacing the payment company in its DAX benchmark ahead of the quarterly index review.
The decision was taken following the conclusion of a market consultation that Deutsche Boerse conducted after Wirecard declared insolvency in June. The results favoured immediate removal of bankrupt companies from the index rather than at the quarterly review.
“According to the new rules, insolvent companies shall be removed from the DAX Selection Indices with two trading days’ notice,” Deutsche Boerse said in a statement ON Wednesday night (AUG 12).
Wirecard’s successor will be announced on Aug 19 with all changes taking effect from August 24.
Irrespective of the current change in the rules for dealing with insolvent companies, an in-depth review of the DAX rules will be conducted. For this purpose, another extensive market consultation will be launched with results expected by the end of the year, Deutsche Boerse said.
Wirecard filed for insolvency after admitting that €1.9 billion (S$3.1 billion) in previously reported cash didn’t exist. The scandal has continued to widen since then and now threatens to engulf top politicians, regulators and auditors.
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