Commerzbank AG (CBK.XE) said Thursday that it was transferring its securities settlement operations to a newly-created joint venture with HSBC Transaction Services GmbH.
Commerzbank will have a 20% stake in the joint venture, which will begin operations in early 2020 and will go on for an initial period of 10 years.
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The bank said Commerzbank's 4.0 strategy, which aims to digitalize the bank and cut costs, accounts for investments and expected medium-term savings.
"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 Commerzbank Chief Operating Officer Frank Annuscheit.
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(END) Dow Jones Newswires
December 07, 2017 04:49 ET (09:49 GMT)