CMC Markets (LSE: CMCX) today announced a joint venture in the stockbroking business with ANZ Bank’s share trading platform ANZ Share Investing, in a strategic step to grow its equity brokerage businesses in the Asia-Pacific region.
In a filing with the London Stock Exchange, the online retail broker said that the partnership will offer the group access to over 500,000 ANZ retail stockbroking clients under the ANZ Share Investing brand. The collaboration will see ANZSI’s clients gaining access to CMC’s technology, customer service and execution via an ANZ-branded stockbroking platform.
ANZ Share Investing is a trading platform aimed at entry-level investors, and provides access to shares, EFTs, initial public offerings (IPOs), secondary offerings and options. ANZSI has over 500,000 clients and relationships with approximately 110 intermediaries in addition to partnerships with three major financial institutions. The online stockbroker that launched in 1998, and was until recently known as ETrade, has been rumoured to be a possible sale target for some months.
CMC added that following a transition period, which will see CMC service the entire ANZSI client base by September 2018, it will become the second-largest stockbroker in Australia by both number of clients and trades executed. The transaction is not subject to any regulatory or shareholder approval.
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The transition period will see the two leaders in their respective markets combine their expertise and reach to integrate CMC’s platform with ANZ’s wider product offering, including margin lending, internet banking and its integrated app Grow in order to maintain a seamless client experience.
Peter Cruddas, Chief Executive Officer of CMC Markets, 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.”