Company

GX2 SYSTEMS

GX2 is focused on providing the most efficient level of spread execution services in global electronic markets. GX2’s unique offering of spread execution without legging risk in electronically traded markets is the cornerstone of our operation and offers countless avenues for continued evolution. GX2 offers systems that support algorithmic trading, traditional relative value spreading, individual futures or securities execution as well as aggregation and smart order routing. GX2 also offers an independent, complimentary middle/back-office solution as well as a pre-trade risk and entitlements package.

GX2 Systems, LLC has designed and developed the platform internally by our elite team of engineers, architects and financial market structure experts. The GX2 solution suite has been adopted and embraced by a growing number and diverse array of Primary Dealers, Regional Broker-dealers, Hedge Funds and Professional Trading Firms.

Company
ExmodePlatform

EXMODE

  • GX2 is a system for executing spreads of multiproduct, customized, relative value spread relationships that are executed precisely at the limit price of the spread level, always in balance, and never legged.
  • GX2 is built on a state-of-the-art technology foundation but it is not a traditional ISV. GX2 is a platform comprised of a trading desk, execution algorithms and risk management.
  • The company’s world-class trading platform allows users to receive quality, actionable prices on customized spreads, baskets, or strategies. With GX2, users no longer have to worry about colocation costs, infrastructure costs and escalating technology headaches.
  • Cross-venue, cross-asset class spreading functionality.
  • Fully customizable tickets.
  • Easy to manage limit order book.
  • Friendly and flexible user interface.
  • Server-based, collocated execution performance accessed through a thin client trading GUI.
  • GX2 allows end-users to focus on what matters most; alpha generation.

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THE  PROBLEM

GX2 owes its beginnings to a proprietary trading firm that used a traditional predicated spreader to execute automated trading strategies.  The firm had difficulty running these automated strategies profitably due to a lack of back test accuracy, tracking error and incomplete fills such as getting “legged” during execution.  Getting legged occurs during spread execution when certain instruments in a spread are filled at the target price but one or more other instruments are not. Getting legged introduces directional market risk that is not a part of the trader’s strategy.  A better tool for spread execution was required.

THE  SOLUTION

In order to solve this problem, GX2 was created.  GX2 uses algorithms to generate theoretical fair markets in the underlying instruments of a spread.  From these prices, the system generates fills to traders that are always in balance; never “legged” and never away from the spread order level.  Once the fill is delivered to the trader, the system inherits the execution risk and proceeds to execute against existing inventory or the aggregated marketplace using automated trading strategies to optimally fill each individual leg over varying time frames. By managing the system’s inventory with highly optimized, tick sensitive, relatively short-term automated strategies, GX2 controls its market risk with a great effectiveness.  As a result, GX2 can create streaming, actionable bid and ask markets for any custom spread relationship.   An executed spread is delivered to the client trader once the trader’s order price meets this indicative market.

Client traders can create a custom trading ticket to reflect the risk profile that they desire without the numerous steps needed in the past to both build into and exit from relative value positions.  When the true cost of execution is factored in, accounting for slippage and a trader’s time and effort managing legs, GX2 will meet and exceed the performance of other ISV spreading platforms while providing a much better user experience.  Many factors contribute to creating this advantage:  colocation with exchanges, maintaining low latency connectivity, proprietary price feed handlers, a logical GUI, and efficient order gateways.  Most important is our continual incremental improvement and optimization effort for the execution algorithm layer which makes all of this possible.

THE  BENEFITS

This leads to the true strength of the system which we feel lies in providing the client trader better, more flexible tools.  GX2 lowers the cost of execution.  Trader testimonials suggest that the overall cost of execution is reduced by 40% over traditional spreaders.  In yield curve relationships, GX2 presents bid/ask spreads that are up to 60% tighter than those shown on more traditional platforms.

THE  MARKET

GX2’s target customer is one who is actively involved in the markets, trades strategies/spreads, trades frequently, and has been fatigued by the investment of time and money on technology to reduce slippage.

THE  COMPETITION

GX2 Systems, LLC holds a United States Patent: System, Method and Apparatus For Creating and Executing Inter-Exchange Spread Instruments. GX2 Systems, LLC, assignee. Patent US 8341059 B1. 25 Dec. 2012.

ExmodePlatform
RTPL

RTPL

  • Provides a real-time consolidated view of positions and individual fills across multiple exchanges and ECNs, trading platforms, prime brokers and FCMs.
  • Provides all accounting, middle office and back office functionality from exchange drop copy to the general ledger of the firm.
  • Provides reconciliation of transactions between the trading systems of multiple ISVs, the exchanges and ECNs, and the prime brokers and FCMs.
  • Exacting ability to manage commissions, fees and rebates per instrument, per trader, per exchange.
  • Available via corporate intranet or over the web through compatible browsers. RTPL uses the highest level of SSL encryption for data transport.
  • Ability to create internal, individual trader statements.
  • Microsoft Excel plugin to access RTPL information in a spreadsheet for further custom calculations.

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THE  PROBLEMS

THE FIRM’S PROBLEM

To provide an executive summary of the firm’s risk and profitability quickly and easily.

THE RISK MANAGER’S PROBLEM

To monitor trader’s positions individually, by instrument, by group, and across the firm.  Need to produce and display real-time risk metrics such as VaR or expected shortfall.

THE TRADER’S PROBLEM

To monitor his or her trades, positions, and P&L in real-time.  The need to see historical fills, real-time risk metrics, and calculate custom metrics on-the-fly.

THE OPERATIONS DEPARTMENT’S PROBLEM

Quick, accurate reconciliation of positions, fees, rebates, and the general ledger.

THE  SOLUTION

GX2 has developed RTPL as a solution to the problems presented above.  RTPL provides real-time trade information by collecting drop copies from exchanges and ECNs and presents them to the appropriate users, along with a market data feed used to calculate P&L.  In the event that trades are not done electronically, RTPL provides a manual entry facility.

Risk calculations begin at the firm level and can be filtered down to group, trader, individual trading account (moniker), and strategy level.  Further breakdown by asset class, instrument, and additional bespoke risk metrics are accessible and easily monitored.  The system has an integrated reconciliation engine to reconcile fills between internal trading platforms and external exchange or OTC counterparty fill confirmations.

RTPL uses trade data along with configurable fee/rebate rates to generate daily individual trader statement.  RTPL provides end-of-day reporting and reconciliation at the firm level for external exchanges, internal matching or OTC counterparties based on trade and financial data provided by the Prime Broker or FCM.  These reports can be generated on a firm, trading group or individual trader basis.  The reports readily available include:  Day/Month/Year P/L By Firm, Group or Trader, Cash And Margin Report, Compare P&L by product – Int vs Ext (Futures, Securities, Equities), Detailed Trade Blotter, Repo finance reporting, Regulatory Capital Usage, Internal allocation of Volume Charges and many others.

THE  BENEFITS

RTPL allows the user to see a complete view of daily trade activity in one view to better manage risk at the trader, trader group or firm level.  An intuitive web user interface  allows users to customize RTPL’s user configuration, fee/rebate management, risk metric management to fit their specific needs.

Further, built-in risk metrics, the ability to create dynamic trader groups and the ability to stream data to Microsoft Excel provide a flexible solution not available from the industry’s legacy products.

RTPL
About us

ABOUT US

GX2 Systems is focused on providing the most efficient method of spread execution services in global electronic markets. GX2’s flagship offering, ExMode, is a fully hosted execution platform for customized spreads of multiproduct relative value relationships. Users’ strategies may consist of cross-exchange, cross-asset class products. Orders are executed precisely at the limit price of the spread level, always in balance, and free from any legging risk.

GX2 also provides STAR, our Smart Trade Aggregation and Routing system, to aggregate the world’s deepest, most tightly priced treasury markets.

Both ExMode and STAR are accessed through a friendly and flexible user interface designed by traders for traders. They are also available via FIX API for strategy-driven trading.

GX2: a refreshing approach to spread execution

About us
Contact

Locations

Chicago

GX2 Systems, LLC
190 S. LaSalle St.,Suite 1950
Chicago, IL 60603
(312) 471-6300
info@gx2systems.com

Contact
News

NEWS

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…..

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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…

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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

News
careers

CAREER OPPORTUNITIES

Trading System Support Analyst – 2024

GX2 is looking for an individual to join our team in the role of Trading System Support Analyst. We are a small team of software engineers, quants, and IT experts that deploy an algorithmic trading system developed in-house. This system is marketed through our FINRA member broker dealer unit, GX2 Spread Markets, LLC. This boutique broker dealer services top tier institutional clients including Hedge Funds, Primary Dealers, and Proprietary Trading Groups. GX2 Systems has recently been acquired by South Street Securities Holdings, Inc. and joins their family of affiliated companies.

The Trading System Support Analyst will cover the Asian trading session hours from GX2 System’s primary office at 190 S. LaSalle St., Chicago, IL. This team member is responsible for monitoring and supporting both an algorithmic trade execution system as well as a web based real-time middle and back-office risk system.

This position involves the intensive monitoring of multiple systems and markets throughout the shift. The hours of coverage are Monday through Thursday 2:30PM-12:00AM CST and Sunday 4PM-12:00AM CST,

REQUIREMENTS
  • Technical degree (BS or BA).
  • Experience in a technical support role.
  • Familiarity with the Linux OS.
  • Basic troubleshooting of networks: ping, nslookup, traceroute, netstat, telnet.
  • Familiarity with Windows System administration.
  • Ability to communicate clearly in both verbal and written form.
  • Comfortability with heavy use of email, Microsoft Teams, and telephone communication with both management and system users/clients.
  • Strong independent work ethic. Exacting attention to detail.
  • Outstanding analytical skills and passion for investigative research.
SKILLS THAT ENHANCE CONSIDERATION:
  • Technical support experience in the trading industry.
  • Familiarity with Microsoft SQL Server administration.
  • Experience with any of the following: SQL, Python, C#, R, C++.
  • QA testing experience or scripting skill.
  • Familiarity with bash, ssh.
  • Familiarity with Nagios.

Please send any additional questions to: hr@gx2systems.com.

Click here to Apply

careers