CMC Markets grows bigger in Australia, set to service 500,000 ANZ retail stockbroking clients

Maria Nikolova

During the transition period, CMC will collaborate with ANZ to provide full integration of the platform with ANZ’s product offering.

International online retail trading services provider CMC Markets Plc (LON:CMCX) has today unveiled an important step in its global expansion – a stockbroking partnership with Australia and New Zealand Banking Group Ltd (ANZ).

In a filing with the London Stock Exchange today, CMC said the deal will lead to it becoming the second-largest stockbroker in Australia in terms of number of clients and trades executed.

Under the terms of the deal, after a transition period, CMC will service more than 500,000 ANZ retail stockbroking clients under the ANZ Share Investing (ANZSI) brand. During the transition period, CMC will collaborate with ANZ to provide full integration of the platform with ANZ’s product offering, including margin lending, Internet banking and integrated Grow app.

CMC is set to service the entire ANZSI client base by September 2018, with ANZSI clients contracting with CMC. The latter will offer these clients technology, customer service and execution via an ANZ-branded stockbroking platform. Talking of trading terms, let’s note that CMC will charge ANZ a fixed price per trade executed.

CMC views this as an important transaction and a valuable opportunity to bolster its presence in Australia. As a result, gross revenue received from CMC’s stockbroking business is forecast to increase by approximately A$40 million.

The rise in volume expected from the transaction means that staff numbers are set to increase in Sydney, CMC comments, with most of these roles being filled by existing ANZSI staff.

Considering CMC’s activities in Australia, we cannot skip mentioning the recent appointment of Deutsche Bank senior executive Andrew Wood as CMC Markets’ Business Development Manager, Institutional Business, at the company’s Sydney office. Mr Wood brings with him 15 years of financial services expertise and is known as a specialist in the provision of foreign exchange solutions and derivatives products for the institutional sector.

The ANZ transaction does not require any regulatory or shareholder approval.

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