flatex AG, a German-headquartered company which offers online brokerage services, announced this Wednesday that it has won an exclusive contract with Société Générale, where the French bank will be its contracts for difference (CFD) product provider for its brokerage business.
The agreement, which is valid until 2025, has been made as part of Société Générale’s ongoing integration of Commerzbank’s EMC business. Previously, the EMC business had been the exclusive CFD partner of flatex. Upon the completion of the acquisition, the deal between the French bank and the German broker will commence.
flatex AG expects a sizeable boost to CFD business
By partnering with Société Générale, flatex expects income from its CFD business to increase significantly. Per year, the broker processes more than 2 million CFD transactions. In total, the company executes approximately 12.5 million customer’s securities transactions paperless per annum.
KVB PRIME Strikes UK with Influential Finance Summit SponsorshipGo to article >>
Furthermore, the long-term partnership will allow flatex to offer its customers a greater variety of products in the future, the statement released today said. However, the company did not specify what these new products might be.
Commenting on the collaboration, Frank Niehage, the Chief Executive Officer (CEO) of flatex AG, said: “We are delighted to have won Societe Generale, a top-tier derivatives player and one of the future leading CFD product providers, as our exclusive product partner.”
“This allows us to guarantee our clients a strong and reliable product partner for the coming years. Together we will expand the product range and further increase the product quality. And due to the existing system interfaces of the former Commerzbank partnership, no additional technical effort is required – a win-win-win deal.”
flatex provides banking services, as well as brokerage, securities, credit servicing, routing, and ATM services. For its business to consumer (B2C) operations, which includes its brokerage unit, the company has more than 300 thousand customers. The company is part of FinTech Group AG.