ANZ Group to Move Its Share Investing Client Base to CMC Markets

CMC Markets plc (LSE: CMCX), an online financial trading services provider, announced the official transition of ANZ Group Share Investing client base to CMC for a sum of AUD 25 million. According to the press release, the deal involved the transition of over 500,000 ANZ Share Investing clients, exceeding total assets of AUD 45 billion.

That said, the AUD 25 million will be funded from CMC Markets’ existing cash resources. Further, the transaction implies that the existing white label technology partnership between the parties will end, whose deal generated £39.5 million in net trading revenue for CMC Markets during the financial year of 2021.

“This transaction is part of our strategy to create a non-leveraged investment platform and forms part of our longer-term goals for the company. As this new venture expands and develops, we will be able to offer more products, including third-party funds and tax wrappers, directly to our clients. This is a further step towards the diversification of CMC’s earnings and complements the launch of our new investment platform in the UK, aligning our business strategy across our core geographies,” Lord Cruddas, CMC Markets CEO, commented on the announcement.

Recent CMC Markets Trading Update

CMC Markets expects that it could take 12 to 18 months to take all the clients through the transition. “I would like to take this opportunity to extend a warm welcome to our new share investing clients, and also thank our colleagues at ANZ Bank, with whom we have worked closely over the last three years to put clients’ needs first,” Cruddas added.

Earlier this month, CMC Markets released a trading update, lowering its operating income expectation for fiscal 2022 from more than £330 million to between the range of £250 million and £280 million. The operating income expectation was estimated based on the performance of the first five months of the ongoing financial year.