Since 2011, investigations into dividend arbitrage transactions have been ongoing in Germany with fines imposed on a number of banks and one institution shut down and insolvent. In total, around 100 financial institutions are said to be subject to investigations.

With the latest revelations by Correctiv (, it appears that cum ex trades are still ongoing and affecting a significant number of other European countries as well. Given the German experience, this is likely to send a shock wave through various institutions, triggering public and internal investigations with fines and D&O litigation to follow.