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Major Partnership with ANZ

8 Mar 2017 07:00

RNS Number : 8102Y
CMC Markets Plc
08 March 2017
 

Major Partnership with ANZ

CMC Markets plc, (LSE: CMCX, "CMC" or the "Group"), a leading global provider of online retail trading, today announces a major stockbroking partnership with Australia and New Zealand Banking Group Ltd ("ANZ"). The transaction will result in CMC becoming the second-largest stockbroker in Australia by both number of clients and trades executed.

 

Key highlights:
· Following a transition period, CMC will service over 500,000 ANZ retail stockbroking clients under the ANZ Share Investing brand
· CMC will provide leading technology, customer service and execution via an ANZ-branded stockbroking platform
· Gross revenue received from CMC’s stockbroking business is projected to increase by approximately A$40m
· Leverages the scalability of CMC’s existing best-in-class stockbroking technology, providing ANZ retail stockbroking clients with access to leading technology, customer service and execution via an ANZ-branded stockbroking platform, which includes full integration with ANZ’s wider product offering
· Long term agreement with high-quality Australian institution, which includes a commitment by CMC to work with ANZ to bring new and innovative features to ANZ retail stockbroking clients

 

Peter Cruddas, Chief Executive Officer said, "I am delighted to announce a significant transaction for the CMC Group which will result in our Australian stockbroking business becoming the clear number two online broker in Australia. ANZ is a high-quality partner with whom we have an excellent relationship and this transaction demonstrates their confidence in CMC's technology capability, the quality of our people and our commitment to Australia. I particularly look forward to welcoming ANZ staff as part of the CMC team in due course."

The transaction is not subject to any regulatory or shareholder approval.

Overview of ANZSI

The ANZ Share Investing ("ANZSI") stockbroking business is the second-largest in Australia and has over 500,000 clients with deep and longstanding relationships with approximately 110 intermediaries and partnerships with three major financial institutions.

Transaction overview

CMC has signed an agreement with ANZ to service the entire ANZSI client base by September 2018 following a transition period, with ANZSI clients contracting with CMC. CMC will provide these clients with leading technology, customer service and execution via an ANZ-branded stockbroking platform. CMC will charge ANZ a fixed price per trade executed. CMC has also committed to work with ANZ to bring new and innovative features to ANZ retail stockbroking clients, to ensure that these clients, together with CMC's other clients, are provided with a market-leading offering.

This is an important transaction for CMC and represents an opportunity to expand its presence in Australia. The increase in volume anticipated from the transaction means that staff numbers are expected to increase in Sydney with the majority of these roles being filled by existing ANZSI staff. Due to the scalability of CMC's platform, the forecast cost increase will be significantly lower than the revenue increase from the additional trading volume.

Technology

CMC has leading stockbroking technology, and has been top-rated in the annual CANSTAR awards with five stars every year since 2011. The platform was entirely built in-house by CMC technologists, and is feature-rich, packed with tools including a leading charting package, Reuters News and Morningstar research.

During the transition period, CMC will work with ANZ to provide full integration of the platform with ANZ's wider product offering, including margin lending, internet banking and integrated Grow app in order to maintain a seamless client experience. As CMC continues to invest, evolve and enhance its platform we look forward to offering our existing clients a market-leading options solution and the ability to trade in international equities.

 

The information contained within this announcement is deemed by CMC to constitute inside information as stipulated under the Market Abuse Regulations (EU) No.596/2014 ("MAR"). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

Enquiries

CMC Markets plc +44 (0)20 7170 8200 / +61 2 8221 2124

Peter Cruddas, Chief Executive Officer

Grant Foley, Chief Financial Officer

Charlie Steel, Global Head of Corporate Development

Matthew Lewis, Head of APAC

Camarco (Financial PR) +44(0) 20 3757 4994

Geoffrey Pelham-Lane

Ed Gascoigne-Pees

Jennifer Renwick

Forward Looking Statements

This announcement may include statements that are forward looking in nature. Forward looking statements involve known and unknown risks, assumptions, uncertainties and other factors which may cause the actual results, performance or achievements of the Group to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. Except as required by the Listing Rules and applicable law, the Group undertakes no obligation to update, revise or change any forward looking statements to reflect events or developments occurring after the date such statements are published.

Overview of CMC

CMC, listed on the London Stock Exchange under the ticker CMCX, was established in 1989 and is now one of the world's leading online financial trading businesses. The Group services retail and institutional clients through regulated offices and branches in 14 countries, with a significant presence in the UK, Australia, Germany and Singapore.

CMC offers an award-winning, online and mobile trading platform, enabling clients to trade over 10,000 financial instruments across shares, indices, foreign currencies, commodities and treasuries through contracts for difference ("CFDs").

In Australia, CMC Markets Stockbroking is a leading provider of white-label trading platforms to financial institutions, such as Bank of Queensland, Bendigo Bank and Suncorp.

This information is provided by RNS
The company news service from the London Stock Exchange
 
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