“South Street Securities Holdings Announces Successful Closure of GX2 Systems Acquisition”
January 16, 2024
South Street Securities Holdings, Inc. (“South Street”) is pleased to announce the successful completion of its acquisition of GX2 Systems, LLC including GX2’s wholly owned broker-dealer subsidiary, GX2 Spread Markets, LLC (“GX2”). 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.
GX2 is an innovative financial market software engineering company…
https://www.southstreetsecurities.com/
South Street Securities Holdings Announces Successful Closure of GX2 Systems Acquisition
New York, NY, January 16, 2024— South Street Securities Holdings, Inc. (“South Street”) is pleased to announce the successful completion of its acquisition of GX2 Systems, LLC including GX2’s wholly owned broker-dealer subsidiary, GX2 Spread Markets, LLC (“GX2″). 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.
GX2 is an innovative financial market software engineering company specializing in the development and implementation of next-generation U.S. 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,” commented James Tabacchi, Chief Executive Officer of South Street Securities Holdings, Inc. “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 & Chief Executive Officer, declares that “The team at GX2 Systems and GX2 Spread Markets is thrilled to become a part of the South Street family of companies. The rich domain 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.”
About South Street Securities Holdings
South Street Securities Holdings, Inc. operates through its subsidiaries, including South Street Securities LLC, a registered broker dealer specializing in repo financing of U.S. Treasuries, Agency MBS, TBA mortgage origination hedging and equity finance; Matrix Applications, LLC, a technology and back-office services company; South Street Capital Management, LLC, an asset management company; and AmeriVet Securities, Inc., a service-disabled veteran and minority owned broker dealer.
About GX2 Systems
Formed in Chicago in 2013, GX2 Systems, LLC is a financial market software engineering company specializing in the development and implementation of next-generation U.S. Treasury securities liquidity solutions across the spectrum of agency brokerage, principal market making and algorithmic trading. Through a state-of-the-art proprietary platform as a service, offered as a desktop application or through a FIX API, GX2 provides its institutional clients direct exchange connectivity, real-time pricing of UST cash and futures markets, and post-trade reporting services. GX2’s software was developed internally by an experienced team of software engineering and trading veterans with the objective of delivering high quality, low latency, market microstructure-based execution to each of our users. All business activities requiring a regulated environment are conducted through its wholly owned broker-dealer subsidiary, GX2 Spread Markets LLC, a FINRA/SIPC member broker-dealer and CFTC/ NFA registered introducing broker.
South Street Media and Investor Relations Contacts
James (Jim) Tabacchi +1.212.803 5050, james.tabacchi@cmetllc.com
Karsten Berlage +1.646.809 6982, karsten.berlage@sssnyc.com
GX2 Systems Media and Investor Relations Contacts
David Jaberg +1.312.471 6302, djaberg@gx2spreadmarkets.com
Jennifer Drag Carson +1.312.471 6299, jenn@gx2spreadmarkets.com
“South Street Securities Holdings is Acquiring GX2 Systems”
August 1, 2023
South Street Securities Holdings Inc. (“South Street”) will acquire all of the equity interests of GX2 Systems, LLC including GX2’s wholly owned broker-dealer subsidiary, GX2 Spread Markets, LLC (“GX2”). This transaction is expected to accelerate South Street’s transformation as a leading technology-enabled provider of multi-asset class securities financing, processing, execution, analytics, and information services.
GX2 is an innovative financial market software engineering company…
https://www.southstreetsecurities.com/
South Street Securities Holdings is Acquiring GX2 Systems
NEW YORK, August 1, 2023— South Street Securities Holdings Inc. (“South Street”) will acquire all of the equity interests of GX2 Systems, LLC including GX2’s wholly owned broker-dealer subsidiary, GX2 Spread Markets, LLC (“GX2”). This transaction is expected to accelerate South Street’s transformation as a leading technology-enabled provider of multi-asset class securities financing, processing, execution, analytics, and information services.
GX2 is an innovative financial market software engineering company specializing in the development and implementation of next-generation U.S. 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, Chief Executive Officer of South Street, commented, “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 Chief Executive Officer, David Jaberg, added, “The entire GX2 team is excited to bring our highly complementary expertise in U.S. 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.” Mr. Jaberg will join the South Street executive committee after transaction closing which is expected in the fourth quarter of 2023 subject to regulatory approval. GX2 will operate from its current Chicago, IL office and from South Street’s headquarters in New York, NY.
The commercial efficacy of GX2’s software engineering and product design is evidenced by GX2’s growth, momentum, and adoption rate. 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, commented, “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. We are thrilled to have helped build such an outstanding business and we are eager to see it continue to grow and ultimately realize its enormous potential.”
Advisors
Milbank LLP and Vedder Price LLP are serving as legal advisors to South Street. SHEUMACK GMA is serving as exclusive strategic and financial advisor to the Board of Managers of GX2 Systems, LLC. and Katten Muchin Rosenman is serving as legal advisor to GX2.
About South Street Securities Holdings
South Street Securities Holdings, Inc. operates through its subsidiaries, including South Street Securities LLC, a registered broker dealer specializing in repo financing of U.S. Treasuries, Agency MBS, TBA mortgage origination hedging and equity finance; Matrix Applications, LLC, a technology and back-office services company; South Street Capital Management, LLC, an asset management company; and AmeriVet Securities, Inc., a service-disabled veteran and minority owned broker dealer.
About GX2 Systems
Formed in Chicago in 2013, GX2 Systems, LLC is a financial market software engineering company specializing in the development and implementation of next-generation U.S. Treasury securities liquidity solutions across the spectrum of agency brokerage, principal market making and algorithmic trading. Through a state-of-the-art proprietary platform as a service, offered as a desktop application or through a FIX API, GX2 provides its institutional clients direct exchange connectivity, real-time pricing of UST cash and futures markets, and post-trade reporting services. GX2’s software was developed internally by an experienced team of software engineering and trading veterans with the objective of delivering high quality, low latency, market microstructure-based execution to each of our users. All business activities requiring a regulated environment are conducted through its wholly owned broker-dealer subsidiary, GX2 Spread Markets LLC, a FINRA/SIPC member broker-dealer and CFTC/ NFA registered introducing broker.
South Street Media and Investor Relations Contacts
James (Jim) Tabacchi +1.212.803 5050, james.tabacchi@cmetllc.com
Karsten Berlage +1.646.809 6982, karsten.berlage@sssnyc.com
GX2 Systems Media and Investor Relations Contacts
David Jaberg +1.312.471 6302, djaberg@gx2spreadmarkets.com
Jennifer Drag Carson +1.312.471 6299, jenn@gx2spreadmarkets.com
“Transformation of the US Treasury Market”
November 03, 2016
The US Treasury market is becoming more and more automated, and some of the same firms that have brought automation to the equities market are moving into Treasuries, along with some new players. TABB Group founder Larry Tabb speaks with Jennifer Drag Carson, head of sales at one of the new firms entering the Treasury market, GX2 Spread Markets.
“GX2 Systems at FinTech Exchange 2016”
April 21, 2016
The FinTech Exchange is a fast-paced and engaging event designed to highlight the latest in financial technology for financial markets and trading firms. Presented by Barchart OnDemand, FinTech Exchange 2016 focuses on the latest trading technologies used by firms involved in trading software, analytics, market data and distribution and cloud computing.
http://www.fintechchicago.com/
“Spotlight on Innovation: 20 New Financial Technology Firms Show the Way Forward”
November 15, 2015
In recent years, an explosion of interest and investment in new forms of financial technology has triggered a wave of entrepreneurial energy. People from a wide variety of backgrounds are forming new companies to harness advanced techniques in software engineering, artificial intelligence, data processing and other technologies. Their goal is to create innovative solutions up and down the financial markets value chain, opening up new opportunities for more efficient trading and risk management.
In this article, MarketVoice spotlights 20 companies that typify this wave of financial technology innovation. All 20 were selected for the Innovators Pavilion at this year’s FIA Expo by a group of industry professionals and venture capitalists