500,000 existing customers all who under the 4th directive will need to be run through KYC at least once per year. While we don't know the pricing lets assume its in the 10-15 Euro range. Then add the SCA and the rate of new customers and .........you have to be looking in the 100 mil range in revenue from these guys alone. Now don''t forget the ISX cost of doing business. On a current run rate they are around $3.6 million per year of costs. their model does not really require more people and more cost to scale up. This company could be looking of an EBIT in the range of 90 million Euro by end of FY 17. And here is the kicker. You have just signed the 2nd largest FX player on the planet who now has a cost advantage over all its other competitors. Saxo who is number 1 has to be looking at this product seriously not to mention the 8 groups below XM. Then you have the smaller more nimble players who have less of a process to approve a product like what ISX offers. I get the feeling this could be an insanely busy 6 -12 months of new contracts. One last thing...how will the institutions value a company that has $100 million plus of EBIT.....10-15x. Best article on the who's who of FX is here;
