Commerzbank AG and HSBC Transaction Services GmbH have entered a partnership for securities settlement.
German lender, Commerzbank will have a 20% minority stake in the joint venture. The partnership will initially be in place for a period of ten years. The new venture is due to begin operations in early 2020. By 2020, both parties will have implemented the technical framework for the data migration.
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An intensive testing phase will take place in 2018 to ensure a seamless transition of the securities settlement operations. Commerzbank has said that its investment and expected medium-term savings have been fully accounted for in its recently announced ‘4.0’ digitisation plan.
Frank Annuscheit, chief operating officer and a member of the board of managing directors of Commerzbank, stated: “Our ‘Commerzbank 4.0’ strategy is aimed at digitalising the Bank, while also simplifying processes and cutting costs.
“The strategic partnership with HSBC for securities settlement ties in with both these aims: in the future, we will be using HSBC’s state-of-the-art securities platform and achieving clear cost benefits.”
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