- Commerzbank's securities settlement operations will be transferred
- Cost savings and simpler processes tie in with "Commerzbank 4.0" strategy
- Due to go live by early 2020, once migration is complete

Commerzbank AG and HSBC Transaction Services GmbH have agreed to enter into a strategic partnership for securities settlement. Under this partnership, Commerzbank's securities settlement business processes will be transferred. For this purpose, a joint venture shall be set up in which Commerzbank shall have a 20 per cent minority stake. The partnership will be in place for an initial period of 10 years.

The new company is due to begin operations in early 2020. By then, both partners will have put in place the technical framework for the data migration. The investments and expected medium-term savings are fully accounted for in the "Commerzbank 4.0" strategy. In 2018, the partners will embark on an intensive testing phase designed to ensure a smooth transition of the securities settlement operations. The partners agreed not to disclose any further details of the agreement.

"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", said Frank Annuscheit, Chief Operating Officer and a member of the Board of Managing Directors of Commerzbank.