Fidessa heralds “new phase of recovery” in markets

Regulatory changes and renewed investment by customers will offset business lost to consolidation, says CE

Fidessa, the London-listed trading and data systems vendor, says that regulatory changes such as the 2018 implementation of MiFID II in Europe and the planned Consolidated Audit Trail in the US will help offset the “increased headwind” of consolidation and closures among the company’s customer base this year.

Announcing 2016 preliminary results and a 9% growth in revenue to £158.3m, Fidessa CEO Chris Aspinwall said the company expects MiFID to be implemented in the UK despite the recent Brexit referendum vote.

“Although it is too early to say what the wider implications of Brexit will be and how this might affect customer activity, we are not currently expecting that there will be any impact on the changing regulatory environment,” said Aspinwall. “In particular, we expect that MiFID II will be introduced as planned across Europe and that, regardless of any Brexit negotiations.”

Aspinwall said that while many of Finesse’s customers had experienced a slow start to 2016, the company sees “a new phase of recovery within its customer base, characterised by a switch away from purely cost focused strategies towards a more strategic approach.”

While this will mean more consolidation in customers’ operations in 2016, Fidessa also says it will bring more investment by firms in differentiating the products and in meeting the increased burden of compliance, as well as encouraging firms to outsource IT.

Announcing the interim results, Fidessa highlighted a new contract signed this year with ABN AMRO Clearing to provide a cross-asset execution service allowing ABN to offer its customers low-latency access to more than 110 futures, options, equities and FX markets worldwide.

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