Investment Operations

Commerzbank May Outsource Securities Settlement

Commerz Bank

Historically, we’ve seen businesses outsource certain select departments or services, or poach another firm’s department (i.e., stock lending department, corporate actions group, etc.) and bring that entire group into their business. So it should come as little surprise that Germany’s second largest public bank, Commerzbank AG, is seeking to outsource its entire securities settlement operation to HSBC Holdings PLC in the United Kingdom. Commerzbank has been engaged in a long-term headcount reduction strategy, seeking to eliminate nearly 10,000 full-time employee positions by the year 2020. Commerzbank is seeking to reduce its operating expenses, and the move to outsource its securities settlement operation to HSBC is a strategic move to that end. Details have not yet been officially confirmed as of this time, and the deal is not certain yet, according to anonymous sources at the banks. Further details may be found here: