DGAP-News

FinTech Group AG: FinTech Group and Commerzbank form long-term strategic CFD partnership

DGAP-News: FinTech Group AG / Key word(s): Alliance
FinTech Group AG: FinTech Group and Commerzbank form long-term
strategic CFD partnership

16.06.2015 / 08:50

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- Commerzbank takes over FinTech Group's CFD-orderflow

- FinTech Group will receive a significant amount for the business

- FinTech Group significantly reduces its costs base and avoids impending
investments into IT-infrastructure

- Wind down of CeFDeX will free up regulatory capital and will reduce
FinTech Group's overall risk exposure

FinTech Group AG (WKN 524 960, ISIN: DE0005249601, FLA.GR) and
Commerzbank's Securities division join forces. With this step Commerzbank
becomes the leading b2b CFD (Contract for Differences) trading operator in
Germany and will offer this service in the future also to FinTech Group's
subsidiary flatex, one of the leading online brokers in Germany. The
long-term contract provides for a profit-sharing and a significant one off
payment and underpins the strategic goal both parties pursue together.

Flatex clients will not be affected by the agreement as only the market
maker changes. The CFD order system will be integrated into flatex
accounts. This integrated model is also a major competitive advantage
compared to other CFD providers. Most of the competitors need to convince
new clients to set up a completely new account, while flatex clients have a
one-stop trading experience.

This transaction will support FinTech Group's transition to become Europe's
leading infrastructure provider and operator for financial services
technologies.

FinTech Group's subsidiary CeFDeX, which so far has been the in-house
market maker for CFDs, will be wound down. This will reduce FinTech Group's
cost base by a single-digit million euro sum p.a. and thus have a positive
impact on FinTech Group's earnings. The joint venture also reduces FinTech
Group's overall risk exposure as any future market maker risks will be
covered by Commerzbank. In addition, CeFDeX' s regulatory capital amounting
to a double-digit million Euro sum will be freed up and can be used for
other purposes.

"We are glad that we have been able to seal the new CFD partnership with
Commerzbank, especially as we have been working together with Commerzbank
very successfully since many years. For example our subsidiary XCOM
operates the OTC trading system of Commerzbank and flatex is one of the