Fidessa sees revenue growth across all regions in 2017
20 February 2018 London
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Fidessa has reported that its yearly revenue increased by 7 percent for 2017, ending the year with 拢353.9 million compared to 拢331.9 million in 2016.
The software provider stated that 66 percent of this revenue was accounted for outside of Europe.
In 2017, Fidessa stated it achieved a 拢92.4 million cash balance after it totalled net outflows of 拢10.1 million, which it attributed to its Jersey City office move and dividend payments of 拢36 million. It also reported it had signed 10 new derivatives deals since January.
In terms of buy side, Fidessa said that firms concerned are now under much stricter requirements to measure execution outcomes and this results in these firms automating more of their order flow.
To meet these demands, Fidessa explained that its approach has been to 鈥渕eet these needs whilst allowing its customers to share common infrastructure with their other higher touch business lines鈥�, which it said 鈥減rovides operational efficiency鈥�.
For buy-side trading, Fidessa said it has 鈥渆xpanded its network, via partnerships with regulation reporting vendors, to allow key transactional events to be recorded...as to support forensic investigation by regulators鈥�.
For regulation, especially in Europe, Fidessa suggested it has worked closely with its customers to deliver an extensive second Markets in Financial Instruments Directive (MiFID II) upgrade
programme.
According to Fidessa, the programme provides enhanced controls, increased transparency, regulatory order and trade data, compliance monitoring and systematic internaliser quoting capabilities.
Looking further ahead to 2019, Fidessa predicted that 鈥渢he gradual reduction in the amount of work required to support regulatory changes and the anticipated improved contribution from the derivatives business is expected to increase Fidessa's ability to invest in further opportunities as the markets develop鈥�.
Fidessa added: 鈥淚f the right opportunities are not clear Fidessa expects that margin would further increase in 2019.鈥�
Chris Aspinwall, chief executive of Fidessa, said: "Fidessa has worked hard during 2017 to position itself to benefit from these changes. This is reflected in a solid financial performance for 2017 as a whole with a strong and developing pipeline, combined with increasing capacity as we move into 2018/19.鈥�
Commenting on the longer-term outlook, Aspinwall continued: 鈥淟ooking further ahead, it is clear that technology will play a greater role in financial markets as the impact of new regulation takes effect. It is also clear that increasing numbers of firms are going to need assistance in building out the platforms of the future and Fidessa is already seeing evidence of this within
its pipeline.鈥�
Christian Voigt, senior regulatory adviser at Fidessa, recently published a blog stating that looming double volume caps have impacted trading behaviour. In the blog, he notes that, 鈥渄espite the caps not being enforced yet, there has been a decrease in the size of dark trading鈥�.
He said: 鈥淲ith great anticipation the industry awaits the announcement of the estimates for the double volume caps, now expected in March. Irrespective of the fact that The European Securities and Markets Authority has already missed one deadline, and with some in the industry waiting to see if there is any substance to a rumoured further delay, it鈥檚 evident that the looming caps have already impacted trading behaviour.鈥�
鈥淭he double volume caps aim to restrict dark trading, making it less attractive. It鈥檚 no great surprise, then, that we鈥檝e seen a decrease in the size of dark trading relative to lit since October 2017.鈥�
The software provider stated that 66 percent of this revenue was accounted for outside of Europe.
In 2017, Fidessa stated it achieved a 拢92.4 million cash balance after it totalled net outflows of 拢10.1 million, which it attributed to its Jersey City office move and dividend payments of 拢36 million. It also reported it had signed 10 new derivatives deals since January.
In terms of buy side, Fidessa said that firms concerned are now under much stricter requirements to measure execution outcomes and this results in these firms automating more of their order flow.
To meet these demands, Fidessa explained that its approach has been to 鈥渕eet these needs whilst allowing its customers to share common infrastructure with their other higher touch business lines鈥�, which it said 鈥減rovides operational efficiency鈥�.
For buy-side trading, Fidessa said it has 鈥渆xpanded its network, via partnerships with regulation reporting vendors, to allow key transactional events to be recorded...as to support forensic investigation by regulators鈥�.
For regulation, especially in Europe, Fidessa suggested it has worked closely with its customers to deliver an extensive second Markets in Financial Instruments Directive (MiFID II) upgrade
programme.
According to Fidessa, the programme provides enhanced controls, increased transparency, regulatory order and trade data, compliance monitoring and systematic internaliser quoting capabilities.
Looking further ahead to 2019, Fidessa predicted that 鈥渢he gradual reduction in the amount of work required to support regulatory changes and the anticipated improved contribution from the derivatives business is expected to increase Fidessa's ability to invest in further opportunities as the markets develop鈥�.
Fidessa added: 鈥淚f the right opportunities are not clear Fidessa expects that margin would further increase in 2019.鈥�
Chris Aspinwall, chief executive of Fidessa, said: "Fidessa has worked hard during 2017 to position itself to benefit from these changes. This is reflected in a solid financial performance for 2017 as a whole with a strong and developing pipeline, combined with increasing capacity as we move into 2018/19.鈥�
Commenting on the longer-term outlook, Aspinwall continued: 鈥淟ooking further ahead, it is clear that technology will play a greater role in financial markets as the impact of new regulation takes effect. It is also clear that increasing numbers of firms are going to need assistance in building out the platforms of the future and Fidessa is already seeing evidence of this within
its pipeline.鈥�
Christian Voigt, senior regulatory adviser at Fidessa, recently published a blog stating that looming double volume caps have impacted trading behaviour. In the blog, he notes that, 鈥渄espite the caps not being enforced yet, there has been a decrease in the size of dark trading鈥�.
He said: 鈥淲ith great anticipation the industry awaits the announcement of the estimates for the double volume caps, now expected in March. Irrespective of the fact that The European Securities and Markets Authority has already missed one deadline, and with some in the industry waiting to see if there is any substance to a rumoured further delay, it鈥檚 evident that the looming caps have already impacted trading behaviour.鈥�
鈥淭he double volume caps aim to restrict dark trading, making it less attractive. It鈥檚 no great surprise, then, that we鈥檝e seen a decrease in the size of dark trading relative to lit since October 2017.鈥�
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