South Street Securities Holdings Acquires GX2 Systems

NEW YORK, 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