South Street Securities will acquire all of the equity interests of GX2 Systems, including GX2’s wholly owned broker-dealer subsidiary, GX2 Spread Markets. This transaction is a move to further South Street as a technology-enabled provider of multi-asset class securities financing, processing, execution, analytics, and information services. Financial details were not disclosed in the company statement.
GX2 is a financial market software engineering company specializing in the development and implementation of 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 institutional clients, along with direct exchange connectivity, real-time pricing of cash and futures markets, and post-trade reporting services. GX2’s software is being developed by a team of engineers and financial industry veterans synthesizing the best of financial market structure, asset class attributes, application functionality, and scale.
Jim Tabacchi, CEO of South Street, said in a statement: “The acquisition of GX2 will allow South Street to be better positioned to serve our clients with cutting-edge algorithmic, agency brokerage and principal market making liquidity solutions in U.S. Treasuries. The combination of our expertise and resources will enable us to deliver even more value to our growing network of institutional clients.”
GX2’s CEO David Jaberg said in a statement: “The entire GX2 team is excited to bring our highly complementary expertise in US government securities, our ExMode proprietary execution platform, our RTPL post-trade risk system, and our growing institutional client network to enhance South Street’s offerings and expand our reach within the financial industry.”
Since commercial launch of its flagship product ExMode in 2015, a fully-hosted execution platform for customized UST spreads of multiproduct relative value relationships, GX2 has grown to 380+ unique users operating within many large financial institutions, including primary dealer banks, institutional fund management firms, hedge funds, proprietary trading firms and regional broker-dealers.
Rob Creamer, president & CEO of Geneva Trading, the previous majority owner of GX2, said in a statement: “Geneva prides itself on building and supporting exceptional individuals and teams, and it has been an honor to support GX2 from its founding to this exciting transition. From our initial conversations, it was clear to me that Jim and South Street’s leadership team has an ambitious plan to leverage their combined operations that align with GX2’s unique capabilities and resolute commitment to providing a superior experience to its customers.”