GX2 Systems

What GX2 Systems does

GX2 Systems, LLC, founded in Chicago in 2013 by David Jaberg and acquired by South Street Securities Holdings, Inc. in January 2024, provides spread execution services and post-trade risk management technology for institutional participants in global electronic markets. The company operates through three core proprietary products developed internally by a team of engineers, architects, and financial market structure experts. ExMode is a fully-hosted execution platform for customized multiproduct relative value spread relationships that delivers fills at the spread order level with no legging risk, leveraging server-based collocated execution accessed through a thin-client GUI or FIX API. RTPL (Real-Time Position and Liability) provides a real-time consolidated view of positions and fills across exchanges, ECNs, prime brokers, and FCMs, with built-in reconciliation, fee/rebate management, VaR and expected shortfall risk calculations, and a Microsoft Excel plugin for custom analytics. STAR (Smart Trade Aggregation and Routing) aggregates deep, tightly priced U.S. Treasury markets for smart order routing across liquidity sources.

The company serves primary dealer banks, hedge funds, proprietary trading firms, regional broker-dealers, and institutional fund managers, reaching 380+ unique users since the 2015 commercial launch of ExMode. Revenue is generated through three streams: subscription-based Platform-as-a-Service (PaaS) offering, agency brokerage transaction fees via wholly owned FINRA/SIPC member broker-dealer subsidiary GX2 Spread Markets LLC (also CFTC/NFA registered), and principal market making in U.S. Treasuries with tightly controlled risk taking. The go-to-market is enterprise field sales targeting sophisticated institutional clients, distributed via desktop application, FIX API, and hosted PaaS channels. US Patent 8341059 B1 (granted December 25, 2012) protects the company's inter-exchange spread instrument execution methods, providing foundational intellectual property. Following the January 2024 acquisition, GX2 operates from its Chicago headquarters and South Street's New York office, with David Jaberg joining the parent company's executive committee.

Name

GX2 Systems

Legal name

GX2 Systems, LLC

Website

https://gx2systems.com

Company type

Private

Founded year

2013

Operating status

Acquired

Headcount range

11–50 employees

Short description

GX2 Systems provides institutional spread execution and post-trade risk management technology through ExMode, RTPL, and STAR platforms, serving primary dealers, hedge funds, proprietary trading firms, broker-dealers, and fund managers in global electronic markets.

Ownership category

akta.pro rank

Product category

Capital Markets Trading Technology

NAICS

Securities and Commodity Contracts Intermediation and Brokerage (5231), Securities and Commodity Exchanges (52321)

SIC

Security & Commodity Brokers, Dealers, Exchanges & Services (6200), Security Brokers, Dealers & Flotation Companies (6211)

akta.pro primary industry

Equities Trade Execution Platforms (ATS/MTF/ECN) (FSAFANAA)

akta.pro secondary industries

Brokerages & On/Off-Ramps (fiat rails, instant buy/sell) (FSAPADAG), Market Making & Liquidity Programs (Exchange-Operated) (FSADAAAI)

Keywords

• Spread execution services
• Treasury trading platforms
• Algorithmic trading systems
• Middle office risk management
• Relative value trading

Headquarters

HQ city

Chicago

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2B

Offering type

Software

Cost components

Technology or R&D, Personnel, Infrastructure, Operations, Marketing or Sales

Revenue model

1. Platform as a Service (PaaS): Proprietary platform offered as desktop application or through FIX API on subscription/service basis for institutional clients. Provides direct exchange connectivity, real-time pricing, and post-trade reporting.
2. Agency Brokerage Services: Agency brokerage execution liquidity solutions through wholly owned broker-dealer subsidiary GX2 Spread Markets LLC.
3. Principal Market Making: Principal execution liquidity solutions in U.S. Treasuries with tightly controlled principal risk taking.

Go-to-market motion1 record

Distribution channels3 records

Marketing channels2 records

Core offering

GX2 Systems provides proprietary spread execution technology for institutional traders in U.S. Treasury and related electronic markets. The company develops and operates the ExMode execution platform (delivering multiproduct relative value spreads without legging risk), the RTPL real-time position and risk management system, and the STAR smart order routing platform. All regulated brokerage activities are conducted through its wholly owned FINRA/SIPC member broker-dealer subsidiary, GX2 Spread Markets LLC.

Product overview

GX2 Systems offers a unified suite of financial trading and post-trade technology solutions comprising three core products: ExMode (execution platform for customized spread execution without legging risk), RTPL (real-time position, risk, and middle/back office platform), and STAR (smart trade aggregation and routing). All platforms are accessible via a user-friendly web interface or FIX API for strategy-driven trading. The company's proprietary technology was developed internally by a team of engineers and trading veterans with over 30 years of combined experience in proprietary trading and financial market structure.

Differentiator

Problem solved

Functional benefit

Brands

• ExMode: Flagship execution platform for customized multiproduct relative value spread relationships, providing spread execution without legging risk in electronically traded markets.
• RTPL
• STAR

Products and services

• ExMode Flagship fully-hosted execution platform for customized spreads of multiproduct relative value relationships. Executes cross-exchange, cross-asset class spreads at the limit price of the spread level, always in balance and never legged, using proprietary theoretical fair-market algorithms. Delivered via thin-client GUI or FIX API for institutional clients including primary dealers, hedge funds, and proprietary trading firms.
• RTPL (Real-Time Position and Liquidity)
• STAR (Smart Trade Aggregation and Routing)

Named customers5 records

Segments4 records

Ideal customer profiles4 records

Technology focussed Yes

API detail

Has API

Yes

API docs

API detail

Core technology

AI maturity

App detail

Integration1 record

Feature5 records

Scale indicators6 records

Recent moves5 records

Expansion highlights5 records

Direct peers

• MarketAxess: Electronic trading platform for fixed income securities serving institutional clients on a global basis. Directly comparable for its institutional credit, rates, and emerging markets electronic execution capabilities.
• BrokerTec (CME Group): Electronic trading platform for U.S. Treasury and repo markets owned by CME Group. Comparable institutional electronic execution venue for UST spot and futures relative value trading.
• Tradeweb Markets: Leading electronic trading platform for fixed income, derivatives, and ETFs. Directly comparable as an institutional electronic execution venue with strong penetration among primary dealers and hedge funds in U.S. Treasuries and futures.
• Fenics UST (BGC Group): Electronic trading platform for U.S. Treasury cash and futures markets operated by BGC Group. Directly comparable to GX2's ExMode for UST electronic execution serving institutional clients.

Broad incumbents

• Intercontinental Exchange (ICE): Major exchange operator and clearing house providing futures, equities, and fixed income infrastructure. Broad incumbent whose Treasury and futures venues overlap with GX2's execution focus.
• CME Group: Largest derivatives exchange operator offering futures and options across asset classes. Broad incumbent that provides the underlying futures contracts and execution infrastructure that GX2's spread platform connects to.
• Bloomberg Tradebook: Electronic trading platform operated within the Bloomberg Terminal ecosystem, offering fixed income, equities, and FX execution. Comparable institutional execution venue with strong penetration among hedge funds and asset managers.

Emerging players

• FlexTrade Systems: Execution management system (EMS) provider for institutional equities, fixed income, and FX trading. Comparable as a multi-asset trading technology provider with FIX API connectivity for institutional desks.
• TransFICC: Fixed income connectivity provider offering a single API for trading across multiple venues and counterparties. Comparable to STAR and GX2's smart order routing focus on multi-venue fixed income execution.

Others

• SS&C Eze: Provider of order management, execution, and post-trade technology to institutional buy-side firms. Comparable as adjacent trading technology with complementary middle-office and EMS capabilities to RTPL and ExMode.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

Compliance4 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles4 records

Subsidiaries1 record

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about GX2 Systems