Commerzbank Archives - The Industry Spread

David Hatton Joins EuroCCP as Its New Chief Technical Officer

May 16, 2019 by Karthik Subramanian Leave a Comment Filed Under: Industry News Tagged: Brokers, Capital Markets, Cécile Nagel, Commerzbank, CTO, David Hatton, EuroCCP, Forex Clear, FX

European clearing house EuroCCP has appointed David Hatton as the firm’s new Chief Technology Officer (CTO) as per the announcement made by the firm yesterday. He is replacing Albert Jan Huizing as CTO but will work in co-capacity as CTO until Albert resigns from the post at end of June to ensure a smooth transition.

Albert has been with EuroCCP since it was founded in 2007 making him one of the oldest employees of the firm. While Albert’s resignation is going to create quite a big void to be filled, David is a really good replacement to fill the gap given his experience of over two decades in the financial service sector. In his role as CTO at EuroCCP, David is responsible for setting the clearing house’s IT strategy and will oversee the management of IT functions in terms of infrastructure, application development, and support.

According to a statement released by EuroCCP, David will join the firm on 20.05.2019 and will be reporting directly to Cecile Nagel, Chief Executive Officer of the firm. Hutton has nearly 25 years of experience working in various major financial firms across Europe in the capacity of IT/Technology Officer. Prior to joining EuroCCP, David was working in as Product owner for Commerzbank AG on their Foreign Exchange Option Migration Project for a period of 7 months.

Before his recent tenure at Commerzbank, David was worked at LCH and during his tenure there he helped build and launch the firm’s FX clearing service Forex Clear. David also served as Head of IT for Paris based CDS Clear for several years overseeing their IT strategy and was also in charge of technical aspects of the firm’s transformation programme.

He had multiple tenures with Commerzbank during his career, having held various key roles in their technical division. His first tenure with Commerzbank was from July 2002 to August 2005 and second tenure was from 2009 to 2010. When speaking about David’s appointment as CTO at EuroCCP Cecile Nagel, CEO of the firm commented “I am delighted that David has chosen to join EuroCCP. As we continue to develop our business, we need to understand how existing and new technology can help support our growth and bring efficiencies to our clients”. And when speaking about Albert’s departure, Nagel stated, “He has been integral to the development and success of EuroCCP since it was launched more than 10 years ago, helping turn the business into one of Europe’s leading market infrastructures. His contribution and counsel will be missed”.

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Deutsche Bank Pledged to Arrest Decline in Revenue in 2019, Fiscal 2018 Revenue 4.3% Lower at €25.32 billion

March 23, 2019 by Karthik Subramanian Leave a Comment Filed Under: Industry News Tagged: annual report, Christian Sewing, citigroup, Commerzbank, Deutsche Bank, financial services, Fiscal 2018, investment, Societe Generale

Deutsche Bank

German multinational investment and financial services company, Deutsche Bank published its annual report for fiscal 2018, that ended on 31st Dec 2018.

During the period, the bank showed a weak performance achieving revenue of €25.32 billion, which is 4.3 per cent lower compared to that of 2017. Taking a look at the report, the bank has pledged to reverse the declining revenue in 2019 assuming solid economic growth during the period.

Further, the bank is also working to achieve a 4 per cent return on tangible equity, but that is fully linked to market conditions. The bank has predicted the same in the previous year, but the market conditions didn’t support the growth.

Christian Sewing, the CEO of Deutsche Bank said:

“Market conditions have improved as compared to those experienced in the fourth quarter of 2018. However, they are somewhat weaker than we had anticipated. We aim to achieve our other key performance indicators over time, consistent with becoming a simpler and safer bank.”

According to reports from Bloomberg, many analysts are skeptical on the forecast estimate by the bank and have a general consensus that the bank will report a decline in revenue and return on tangible equity of 1.2 per cent in 2019.

Deutsche Bank is not the only case, several other banks such as Societe Generale has previously revised its guidance with lower profits for its markets business, and also executive from both Citigroup and JPMorgan Chase & Co. told that they are expecting a weaker trading revenue compared to a year ago.

The report also mentions about Deutsche Bank and Commerzbank of a possible merger, and the merging of two rival banks will be a very positive move. CEO Sewing believes that the combined entity would improve the cost of funding, but job cuts coming out of the merger will be the pain points ahead. Together, the bank would employ close to 140,000 employees worldwide.

Commerzbank Sells Equity Markets & Commodities Business to Societe Generale

July 5, 2018 by Ricardo Esteves Leave a Comment Filed Under: Industry News Tagged: brokerage, Commerzbank, commodities, Equity Brokerage, Equity Capital Markets, Equity Markets, ETF, exchange-traded funds, Lyxor, market making, Societe Generale, trading

Commerzbank has sold its Equity Markets & Commodities (EMC) business to Societe Generale as the bank reduces its overall complexity and frees up capital for investment in Commerzbank’s core franchise.

The business comprises the Commerzbank’s manufacturing and market making of flow and structured trading and investment products as well as its established exchange-traded funds (ETF) brand, Comstage, which is amongst the major retail products market makers and amongst the leading dealers of medium-term notes. The bank’s EMC business generated €381m gross revenues in 2017.

Marking a further milestone in the execution of the “Commerzbank 4.0” strategy, the transaction is subject to pre-clearance with competent tax authorities, approval by further relevant authorities and the employee representative committees as well as the finalization of legal documentation.

Martin Zielke, Chief Executive Officer (CEO) of Commerzbank

The Equity Capital Markets (“ECM”), the Equity Brokerage (“Equity Trading” and “Equity Sales”/”Brokerage”) businesses, and the hedging business for commodity risks will not be part of the transaction. These businesses remain part of its strategic client offering.

The deal includes the transfer of EMC’s trading books and client franchise, staff, as well as parts of the IT infrastructure to Societe Generale. The transfer of EMC front office employees and certain associated support function staff is subject to approval by employee representative committees.

EMC revenues are expected to fade out in the profit and loss statement of Commerzbank during 2019 as the transfer of trading books and associated balance sheet will gradually take place starting at the end of 2018. The sale of the EMC business will save Commerzbank at least €200m by year-end 2020 in expenses.

Martin Zielke, Chief Executive Officer (CEO) of Commerzbank, said:

“With this agreement, we are delivering a further milestone in the implementation of our ‘Commerzbank 4.0’ strategy. We are simplifying our business, we are contributing to our cost-cutting targets, and we are freeing up capital for the benefit of our core business with private and corporate clients.”

Michael Reuther, member of the Board of Managing Directors responsible for the Corporate Clients segment, commented:

Roberto Vila, Divisional Board Member Equity Markets & Commodities

“As a market leader for corporates in Germany, we will, of course, continue to offer the full range of capital markets products including commodity hedging products and brokerage services to our clients.”

Roberto Vila, Divisional Board Member Equity Markets & Commodities, said:

“Over the last 29 years, the Equity Markets & Commodities business has grown in Commerzbank to be one of the leading European manufacturers and market makers of financial products. I am convinced that with Societe Generale and Lyxor, leading Derivatives and ETF Houses, we have found the right new owners for this franchise to grow, innovate and be even more successful in the future. We will ensure a smooth and transparent transition process for investors who are holding our products.”

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