Deutsche Boerse's subsidiary Clearsteam raided over Cum-Ex tax fraud case

The offices of the German exchange operator Deutsche Boerse's subsidiary Clearsteam were raided by public prosecutors on Tuesday. The offices were raided over the Cum-Ex tax fraud case which involves cross-border trading of company shares around a syndicate of banks, investors and hedge funds to create the impression of numerous owners, with each entitled to a tax rebate.

Reuters reported that a Deutsche Boerse spokesman confirmed that offices of its Clearsteam subsidiary were searched, adding that the investigation was focused on both clients and staff.

"As in the past, Deutsche Boerse is fully cooperating with the authorities," the spokesman said.

Handelsblatt first reported the raids, adding that Clearstream apparently played a key role in the illegal dealings.

The investigation into the scheme began as far back as 2013. Prosecutors have said the practice misled the German government into paying tax refunds that have cost the country billions of euros.