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CMC Invest, recognized as Australia’s second-largest retail stockbroker, is undertaking a significant strategic initiative to overhaul and future-proof its business-to-business (B2B) post-trade operations in New Zealand. This transformation involves a partnership with Contemi Solutions, which will enable CMC Invest to become a full trading and clearing participant of NZX (New Zealand Exchange) and NZClear.
Key aspects of this initiative include:
* Transforming CMC Connect: CMC Connect is CMC Markets’ institutional arm, providing online trading and investment services, technology, and liquidity to banks, brokerages, family offices, hedge funds, and dealing desks globally. The strategic initiative will specifically target and enhance its B2B post-trade operations within New Zealand. “Post-trade operations” generally refer to the processes that occur after a trade is executed, including clearing, settlement, custody, and reconciliation.
* Partnership with Contemi Solutions: Contemi Solutions, a technology provider with a strong presence in the market, will implement its NOVA Post Trade Settlement and Clearing platform. This suggests a significant technological upgrade and streamlining of CMC’s back-end processes in New Zealand.
* Full NZX and NZClear Participation: By becoming a full trading and clearing participant of NZX and NZClear, CMC Invest will deepen its integration into New Zealand’s financial market infrastructure. NZClear is the central counterparty to trades on NZX markets, handling clearing, settlement, and risk management functions. This status will enhance CMC’s operational efficiency, control, and potentially allow for broader offerings to its B2B clients in New Zealand.
* Future-Proofing and Scalability: This strategic move is aimed at scaling CMC’s business, delivering an enhanced client experience, and positioning itself as a market leader in New Zealand. It’s designed to meet the growing demands of retail investors, including support for 24-hour trading, multi-time zone operations, and broadening investment options for clients.
* Enhanced Client Control and Transparency: The transformation will also bring a structure similar to Australia’s Holder Identification Number (HIN) framework to New Zealand, providing investors with greater transparency, control, and security over their assets.
This strategic investment by CMC Invest in its New Zealand operations, building on previous announcements about becoming an NZX participant and partnering with ASB Bank, underscores its commitment to the New Zealand market and its vision for operational agility and innovation in a dynamic regulatory and market environment.

Video courtesy of KDPW

Video courtesy of KDPW