Fidessa sees revenue growth in line with 2016, says well placed to benefit from regulatory changes

Fidessa said on Thursday that constant currency revenue growth for 2017 is likely to be around the levels as the previous year, and that it is well placed to benefit from the opportunities that will arise in the market as a result of regulatory and structural change.

In its interim management statement for 1 July to date, the provider of high-performance trading, investment management and information solutions said that while it is still unclear exactly how customers will be affected by the changes, it expects that the opportunities it is seeing will continue to develop.

“This particularly in the areas of derivatives trading, electronic trading and its customers’ use of equity correlated assets (ETFs, swaps, etc.),” said the company. In line with previous guidance, it said it now seems clear that MiFID II will go ahead as planned although there is likely to be some phasing in the way it is implemented next year.

The group said it remains cash generative, which provides “strong support” for its dividend policy, and continues to expect that 2017 constant currency revenue growth will be around the levels seen during 2016.

“Looking further ahead, although it is clear that uncertainty is going to be a strong theme within the markets for some time, Fidessa believes that it is entering a period where opportunity is returning. Fidessa expects this opportunity to arise both from customers developing their businesses in response to market changes and also as a result of other vendors struggling with the scale needed to operate successfully in the increasingly complex environment.

“Fidessa believes that it will see further progress with its multi-asset initiative and will continue to look at the possibility of extending its asset class coverage further. Fidessa believes that across all asset classes, the market is moving towards the increased use of service-based solutions and that few vendors have the depth of applications, operational expertise and the scale of infrastructure needed to deliver these solutions.”