CMC Markets PLC (LSE:CMCX) shares climbed 6% on news that it has been selected as preferred vendor by Australia's Westpac for online share price trading services, extending an existing relationship Down Under.
Following a 12-month integration period, the online CFD provider and stockbroker will provide technology and execution for share trading customers of Westpac and St.George, integrating with the bank's current technology offering.
Costs of integration are expected to be largely capitalised with "revenue upside proving meaningful" to the Australian CMC Invest business, the FTSE 250-listed group said.
CMC is Australia's second-largest stockbroker, managing over A$90 billion in assets under administration and serving more than 1.2 million share trading accounts.
"This new arrangement will result in a meaningful increase in CMC's market presence which will see the business post integration servicing circa 40% more customers with increased domestic volumes of approximately 45%," the company said.
Broker Panmure Liberum said it was "another example of CMC’s strategy of leveraging its existing trading platform (and cost base) through B2B relationships with financial partners".
The shares rose 13.6p to 237.09p on Monday morning.