Wirecard to be ejected from Dax index

Wirecard will be ejected from the Dax index of leading German shares after a rule change enabling the scandal-ridden company's ejection.

Deutsche Boerse has adopted new rules, proposed in July, allowing a Dax member's removal within two days if the company becomes insolvent, Reuters reported.

The payments company joined the index of 30 leading German shares in 2018 when it was growing rapidly as a rare technology success story for Germany. The company filed for insolvency in June after a €1.9bn (£1.7bn) hole was discovered in its finances. Revelations since point to widespread fraud at the company.

The new Dax list will be published on 19 August and Dax will leave the index on 21 August. Wirecard shares fell 9.8% to €1.45. They have lost 99% of their value in 2020.

The company's collapse is a source of embarrassment for the German financial establishment. Regulators tried to defend Wirecard against allegations of fraud uncovered by the Financial Times which have since been vindicated.

On Wednesday German prosecutors appealed for help in tracking down Jan Marsalek, Wirecard's former operations head, who has gone missing and is wanted for suspected embezzlement.