South Street Securities merges with GX2 Spread Markets

The two broker dealers are now consolidated under the South Street Securities LLC entity

South Street Securities LLC has announced the completion of its merger with GX2 Spread Markets LLC, having received regulatory approval from the Financial Industry Regulatory Authority (FINRA) and the National Futures Association (NFA). The two broker dealers are now consolidated under the South Street Securities LLC entity. This marks a significant milestone in the firm’s commitment to technology-enhanced trading across the capital markets, highlighting the evolution of algorithmic, agency brokerage and principal market making liquidity solutions in US Treasuries.  

GX2 Spread Markets transitions the operation of its leading interest rate algorithmic trading platform for outright, spread and basis strategies into South Street Securities. 

GX2 Systems continues to aggressively design, develop and deploy new execution algorithms and strategies while striving to improve customer access to execution through web application and API. The experienced team at GX2 Systems will help expand South Street Securities’ footprint in the primary dealer, large international dealer and hedge fund ecosystem. 

“We’re focused on delivering more value to our clients through increased efficiency and technology-driven solutions across our businesses,” said James Tabacchi, president and chief executive officer of South Street Securities Holdings, Inc. “Bringing GX2 Spread Markets into South Street Securities represents the next chapter in our mission to scale strategically while honoring our standard of quality, relationship-driven service.” 

This follows the January 2024 announcement of South Street Securities Holdings, Inc. acquiring: 

• GX2 Spread Markets LLC, a boutique broker dealer that offers a fully hosted aggregation and spread execution platform as a service for US Treasuries and related Futures, which has merged operations into South Street Securities LLC. 

• GX2 Systems LLC, a financial technology firm that engineers electronic trading solutions for the Fixed Income and Futures markets.

GX2 Spread Markets has fully transitioned its operations, trading and execution activity into South Street Securities, leveraging the enhanced balance sheet and direct clearing membership at FICC. 

“Joining forces under one broker dealer unlocks new opportunities for our team and clients,” said David Jaberg, president and chief executive officer of GX2 Systems. “It allows us to emphasize the growth of our voice execution desk and high-touch, client coverage by utilizing the latest technology developments and improvements within our global, algorithmic execution platform.” 

The integration brings seamless access to GX2 Systems’ next generation rate-algo technology. Recently, the financial technology firm released an advanced algo suite focused on capturing mid-market execution and providing algos for minimizing execution risk in a number of market environments. 

As South Street Securities begins this new chapter, it celebrates stronger infrastructure, deeper capital efficiency, more in-house industry experts, enhanced technology, and greater value for clients.

Image: Morgan Housel on Unsplash

Robert Welbourn Robert Welbourn is an experienced financial writer. He has worked for a number of high street banks and trading platforms. He's also a published author and freelance writer and editor.