Shares of CMC Markets Plc (LSE:CMCX) climbed more than 6% on Monday following news that the UK-based financial services firm will become Westpac’s preferred platform provider for its online share trading services. The deal will bring CMCX’s trading technology to a wider audience across both mobile and desktop platforms.
The full integration is anticipated to take around 12 months, with the majority of implementation costs capitalized and ongoing expenses described as incremental.
CMC Markets expects the partnership to significantly boost its Australian stockbroking operations, projecting service to roughly 40% more clients and an increase in domestic trading volumes of approximately 45% after integration. The company noted that the arrangement does not require regulatory or shareholder approval.
In its announcement, CMCX highlighted that the Westpac platform collaboration could deliver a “meaningful” revenue benefit to its Australian CMC Invest business. RBC Capital Markets estimated that Australian stockbroking contributed around 15% of CMCX’s net operating income in FY2025.
The integration will leverage existing technology and operational scale, with capitalized costs covering most of the setup and only incremental expenses expected to continue post-launch. CMC Markets holds the position of the second-largest stockbroking firm in Australia, largely due to client transitions from ANZ.
RBC Capital Markets noted that with major investments now behind it, FY25 results could provide a clearer view of the group’s profitability potential. The brokerage added that CMCX is currently trading at a CY26E price-to-earnings ratio of 10x, compared with the European diversified financials sector average of 15x.
The firm emphasized that it is “continually advancing its propositions to respond to industry developments” and highlighted the high-margin, debt-free, and capital-generative characteristics of its business. The Westpac deal, the company confirmed, is intended to expand service capacity and trading volumes, allowing CMCX to handle “circa 40% more customers with increased domestic volumes of approximately 45%.”
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