LONDON: CMC Markets Stockbroking has been selected as the preferred vendor to extend its long-term technology and platform partnership with Westpac Banking Corporation (WBC.ASX), one of Australia’s largest financial institutions.
The agreement covers Westpac’s online share trading services, Westpac Share Trading (WST) and St.George Directshares (DS), and will see CMC provide white-label web and mobile platforms integrated with the bank’s existing technology stack.
Integration is expected to take 12 months, with associated costs largely capitalised. CMC said the arrangement is expected to deliver meaningful revenue upside to its Australian CMC Invest business.
“This is a significant and exciting opportunity for CMC Markets,” said Group CEO Lord Peter Cruddas. “There is no greater validation of our capabilities than when a major institution places their trust in our technology.”
Westpac and St.George customers will gain access to CMC’s trading technology, including global market access, advanced analytics, and future roadmap features.
CMC Markets Stockbroking, Australia’s second-largest broker by assets under administration, manages over A$90 billion and serves more than 1.2 million accounts. The deal is expected to boost its customer base by approximately 40% and domestic trading volumes by 45%.
The transaction does not require regulatory or shareholder approval.
Westpac, which serves around 13 million customers, said the selection followed a strategic review and tender process.
“CMC is a recognised market leader in online share trading,” said Ashley Stewart, Westpac’s Managing Director of Private Wealth. “We look forward to extending our relationship to deliver innovative trading features and a leading user experience.”