South Street Securities announced it’s acquired GX2 Systems, including the wholly owned broker-dealer subsidiary, GX2 Spread Markets. Financial details were not disclosed.
“This marks a significant step in South Street’s transformation as a leading technology-enabled provider of multi-asset class securities financing, processing, execution, analytics and information services,” according to a company statement.
GX2 is an innovative financial market software engineering company specializing in the development and implementation of next-generation US Treasury (UST) securities liquidity and related analytical solutions. Through a proprietary platform installed on the desktop of its institutional clients and offered on a platform as a service (PaaS) basis, GX2 provides algorithmic, agency brokerage and principal execution liquidity solutions to its growing network of users, along with direct exchange connectivity, real-time pricing of cash and futures markets and post-trade reporting services.
“This milestone is not just about growth; it’s about integrating GX2’s unique capabilities with our robust infrastructure,” said James Tabacchi, CEO of South Street Securities, in a statement. “Our focus now shifts to integrating our businesses and harnessing the synergies between GX2’s innovative solutions and our proven expertise. This integration will empower us to provide enhanced services to our clients and play a pivotal role in the evolution of algorithmic, agency brokerage and principal market making liquidity solutions in U.S. Treasuries.”
Since GX2’s 2015 commercial launch of ExMode, a robust and fully-hosted execution platform for UST spreads, it has impressively grown to serve over 380 unique users in prominent financial institutions, including primary dealer banks, institutional fund management firms, hedge funds, proprietary trading firms and regional broker-dealers. This expansion demonstrates the platform’s significant impact and industry acceptance. The acquisition of GX2 by South Street is a strategic move, reinforcing its commitment to providing a comprehensive suite of impactful solutions and exceptional service.
David Jaberg, GX2 president and CEO, said in a statement that South Street’s experience in securities finance, broadened product reach, and enhanced balance sheet “will provide many pathways to develop and deploy our technology in new ways that will bring value to clients across the full South Street spectrum.”