CIMB, Kepler Cheureux sign cooperation pact on equity research

KUALA LUMPUR: CIMB Investment Bank Bhd and Kepler Cheuvreux have signed a cooperation agreement and a memorandum of understanding (MoU) to cross-distribute equity research in both their respective regional markets in Asia and Europe.

In a statement yesterday, chief executive of CIMB Group, Tengku Datuk Zafrul Tengku Abdul Aziz, said they will also collaborate in creating a single global program trading platform.

“This will include Kepler Cheuvreux staff taking up positions in CIMBs office in Hong Kong to market European equities to Asian clients.

“In the UK, access to Asian equities will be provided through CIMB sales personnel as well as sales traders already located in London, while the creation of a new desk in Paris will connect continental European clients with the Asian market,” he said.

Tengku Zafrul said CIMB was very excited about this tie-up with Kepler Cheuvreux.

“It is a smart and efficient operating structure to reach clients in each others regions without the heavy expenses and efforts of setting up local distribution.

“During our discussions, we have been struck by the similarities between our two organisations,” said.

He added that both companies had an extensive multi-local set-up within their regions and both firms enjoyed dominant positions in their markets and provided an edge for clients with highly-specialised execution capability backed by highly robust research.

CIMB said the cooperation agreement concerned equities only.

It is envisaged that the partnership could also be extended to other areas such as equity capital markets, mergers and acquisitions, retail as well as private banking.

Subject to the appropriate board approvals and compliance and regulatory due diligence, the cooperation agreement is expected to be operational from fourth quarter of 2015.— Bernama