CMC Markets plc (LON:CMCX) has signed an agreement to enter into a long-term strategic partnership with major New Zealand financial institution ASB Bank.
Following an integration period, CMC will provide ASB clients with access to market-leading technology and execution via an ASB-branded web and mobile platform, including full integration with ASB Bank’s current technological offering.
Integration is expected to take between 12 and 18 months, with the associated costs expected to be largely capitalised and revenue upside proving meaningful in the context of CMC Markets’ Invest business. On an ongoing basis, the cost impact is expected to be incremental as the Group leverages existing scale to service the business.
ASB customers will receive CMC’s mobile and desktop trading technology, as well as access to over 15 international markets, extensive market research and tax reporting tools.
As part of this agreement there is a requirement for CMC to become a full NZX trading, settling and clearing participant.
The transaction is not subject to any regulatory or shareholder approval.
CMC Markets CEO, Lord Peter Cruddas, commented:
“We are delighted to be announcing this partnership with ASB Bank to deliver our market-leading white label technology. There is no higher endorsement of our company than when a major bank or financial institution trusts our technology to deliver a service to their valued clients and this agreement marks further progress in our ongoing diversification strategy, as our B2B technology and institutional-first approach continue to unlock global opportunities. We look forward to working with ASB Bank to deliver the best online share trading service in New Zealand.”
ASB Executive General Manager of Corporate Banking, Jonathan Oram, commented:
“We are proud of our online share trading platform and the fact that we are the only bank in New Zealand to offer a share broking service, which complements our other investment products and services including Wealth advisory and KiwiSaver. We are focused on accelerating progress for all New Zealanders and, by investing in this partnership with CMC, we will develop our offering even further for ASB customers looking to buy or sell shares and other market listed securities.”
