Fidessa targets derivatives market with post-trade tech

Fidessa targets derivatives market with post-trade tech

Tech firm Fidessa said it plans to extend in the coming months one of its fund management post-trade systems to cover listed derivatives instruments.

London-based Fidessa said it is looking to launch a derivatives module for its post-trade affirmation management solution by the end of the second quarter of the year.

“We are about to go into testing with one buy-side partner and one of their clearers, with a target  to match and confirm each trade on the day the trade was struck," said David Pearson, Fidessa’s head of post-trade strategy.

We have a go-live with the service by the end of the second quarter this year, and in the subsequent weeks we will expand across other clearers and executors.” 

The affirmation management solution (AMS) automates the middle and back office processing for buy-side firms. The technology will now be expanded to include processing for exchange-traded derivatives.

According to the firm, automating the post-trade workflow can help firms speed up processes, reduce errors and save money.

“The level of manual processing in the back-office to complete the trading lifecycle in exchange traded derivatives leaves a lot of potential for human error and exposes operational risk,” Pearson said.

The tech firm reported on Monday a 25% rise in 2016 profits to £48.8 million and a 12% rise in revenue to £331 million. According to the firm, a weaker pound and growth in its derivatives arm helped drive profits. 

Derivatives revenue at Fidessa grew 15% to £41.3 million last year.

Despite considerable pressure on futures brokers, Fidessa said it is seeing continued demand in exchange-based derivatives trading, and signed late last year a deal to provide a new platform to BNP Paribas. 

The agreement, announced by the French bank in October, will support the French bank's futures and options agency operation for listed derivatives across Europe, Asia-Pacific and North America.

The UK-listed firm has also said it plans to relocate its main US office from New York to Jersey City in 2017. 

 

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