The scandal on Deutsche Boerse that led to the ouster of two top executives has triggered a probe by German markets regulator BaFin into whether the investors in the top publicly-traded stock-exchange operator in the world properly acted in countering the stock exchange’s bid for London Stock Exchange PLC or properly behaved with regard to the removal of Chief Executive Werner Seifert. This shows increased regulatory scrutiny of the activities of hedge funds.

"This shows that we must put the activities of hedge funds in Germany, Europe and the world under the microscope," German Economy Minister Wolfgang Clement was reported as saying Wednesday.

The comparison of some investors with "a plague of locusts" from one of the German politicians comes amid calls for greater transparency in hedge funds operations. The fierce opposition at Deutsche Boerse was spurred by the hedge funds from US and UK, signifying the end of the era when CEOs enjoyed wide powers and support of friendly banking institutions.

The two funds that were opposing the bid for LSE, the London-based Children’s Investment Fund Management (U.K.) LLP (TCI), and Atticus Capital of New York, are the obvious targets of the investigation.