CMC Markets enters partnership with New Zealand's ASB

1st Nov 2024 07:17

(Sharecast News) - CMC Markets announced a strategic partnership with New Zealand bank ASB on Friday, marking a significant expansion into the Australia-New Zealand region.

The FTSE 250 company said the collaboration would allow ASB's clients access to CMC's trading technology via an ASB-branded web and mobile platform, integrated with the bank's existing systems.

It said the integration was expected to take between 12 and 18 months, with costs largely capitalised and expected to generate substantial revenue within CMC's Invest business.

Under the agreement, customers of ASB - owned by Australia's Commonwealth Bank - would gain access to CMC's trading platforms, featuring more than 15 international markets, along with market research and tax reporting tools.

CMC, currently Australia's second-largest stockbroker with over AUD 70bn (£35.6bn) in assets under administration and over a million trading accounts, would also become a full trading, settling, and clearing participant of the NZX exchange as part of the partnership.

"We are delighted to be announcing this partnership with ASB Bank to deliver our market-leading white label technology," said CMC Markets CEO Lord Peter Cruddas.

"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."

At 0827 GMT, shares in CMC Markets were up 0.72% at 308.7p.

Reporting by Josh White for Sharecast.com.