CMC Connect, the institutional arm of UK-based brokerage group CMC Markets, announced on Friday that it has signed an agreement with ASB Bank.
The agreement will mean that CMC Markets provides a white label web and mobile platform for ASB clients that use the bank to invest.
That also includes access to a range of different markets, tax reporting tools, and market research.
In a statement, CMC Markets said that integration with its technology will take between 12 to 18 months.
The broker also said costs associated with the deal will be capitalised in its accounts.
As reported on Thursday, CMC Markets is looking to get approvals with NZX – New Zealand’s main stock exchange operator – so that it can execute, clear, and settle trades.
The company said in its statement today that a condition of the agreement with ASB is that it must get those approvals.
CMC Connect has emerged as a core part of CMC Markets’ business over the last few years. Since leverage restrictions were imposed in 2018 by the FCA and ESMA, the company has sought to try and generate more revenues from its B2B offering.
Historically one of its major wins in this regard was getting ANZ as a client in Australia, which massively helped the firm build its stockbroking business in the country.
More recently, the company partnered with Revolut to facilitate the company’s new Invest offering.
