Wirecard is being booted from the blue-chip DAX Index by exchange operator Deutsche Boerse after a new policy revision, creating another headache for the bankrupt German payments group.
Deutsche Boerse disclosed on Wednesday that it will need to adjust its trading policies to be able to remove the fraud-hit Wirecard from the highly reputable DAX 30 Index after the credit card operator's financial collapse.
Wirecard was elevated to the DAX list of 30 rising companies in 2018 – the same year the company made headlines as a European tech powerhouse and overtook Commerzbank.
But in a sudden twist of fate, Wirecard became insolvent in June following the disclosure of a $1.9 billion anomaly that its auditor, EY, claimed resulted from a well-orchestrated fraud.
Earlier this year, a high-profile controversy broke out over a missing $2.2 billion from the group's annual report, which grew into a global money laundering conspiracy that resulted in arrests of top executives, including Wirecard chief executive officer Markus Braun.
Wirecard eventually admitted the supposed missing money did not exist after all. It became the first ever DAX 30-listed group to have been embroiled in such a high-profile scandal that filed for insolvency.
Deutsche Boerse clarified that the decision to remove financially struggling companies on "short notice" was immensely supported in a poll of investment players, the German exchange operator stated. Berlin-headquartered food delivery group Delivery Hero is expected to replace Wirecard in the DAX 30.
Meanwhile, German authorities appealed for help in locating Marsalek. A wanted notice was shown together with the appeal that was made on national television on Wednesday. Marsalek is accused of pocketing billions of euros from the scandal-tained Wirecard.
Markus Braun, former Wirecard chief executive, and Burkhard Ley, former finance director, have been detained since July 22. The two executives are also accused of defrauding the company.
