Investors include Nasdaq Ventures, Goldman Sachs, BMO, Bank of America, AllianceBernstein, and MaC Venture Capital

Funding supports development of the first U.S. trading venue that fundamentally reengineers the price and liquidity discovery process, focusing on parent order completion speeds, not per trade latency

On target for a Q2 2021 launch, subject to U.S. regulatory approvals

PureStream Trading Technologies Inc announced today the closing of its Series A fundraising. The $14mm round was led by Nasdaq Ventures, Goldman Sachs, BMO Financial Group, Bank of America, AllianceBernstein, and MaC Venture Capital.

The funding supports the upcoming launch of the first U.S. trading venue that reengineers the price and liquidity discovery process using open-ended liquidity transfer rates akin to protocols found in data networks. PureStream’s alternative trading system (ATS) will enable institutional investors’ portfolio implementations to execute up to 40x faster without price impact. Its innovative market structure uses percentage rate-based order types, to prioritize, match, and govern open-ended matches. Price discovery is accomplished via referencing the continuous market’s trade reports from the consolidated tape, and not simply the NBBO quote. The PureStream ATS test facility is now open for broker-dealers to start the process of integration in preparation for a Q2 2021 venue launch. The ATS is currently pending U.S. regulatory approval.

“Electronic trading has not scaled for institutional investors because the basis of venue logic, quantity at a moment in time, has become outdated,” said Armando Diaz, Founder and CEO, PureStream. “The PureStream ATS will offer brokers and their institutional clients greater bandwidth to get more liquidity faster, more cost-effectively and with greater security. We are grateful for the support of major institutional participants, and we look forward to working with all institutional brokers willing to lead adoption.”

“Nasdaq Ventures seeks to partner with and invest in firms who are spurring innovation that aligns with and accelerates our vision to reimagine the markets of tomorrow,” said Gary Offner, Head of Nasdaq Ventures. “PureStream’s unique matching methodology is particularly complementary to Nasdaq’s current suite of execution services, as well as trading venues around the globe who leverage Nasdaq’s market technology platforms for their trading systems. We look forward to supporting PureStream as it provides new innovation to the capital markets ecosystem.”

“Goldman Sachs is committed to helping clients access liquidity and PureStream’s ATS will give institutional investors a new and differentiated execution experience,” said John Cosenza, Head of Americas Equities Electronic Trading, Goldman Sachs.

“At BMO Capital Markets, we continue our efforts to accelerate our strategic priorities of delivering exceptional client experiences,” said Joe Wald, Managing Director and Co-Head Electronic Trading, BMO Capital Markets. “Our acquisition of Clearpool Group and investment in PureStream affirms our vision for the advancement of innovative electronic trading technologies, aligning with our focus and commitment to access quality venues, improve execution quality for our clients, and facilitate more transparent and equitable market environments for the institutional investment community.”

“Bank of America is excited to partner with PureStream on this innovative matching paradigm, designed specifically with the institutional investor in mind,” said Pankil Patel, Head of Americas Electronic Trading, Bank of America. “Our investment underscores our relentless focus on providing cutting-edge liquidity solutions and execution capabilities for our clients.”

“We are thrilled to be partnering with PureStream to bring enhanced liquidity to institutional traders,” said Frank Loughlin, Global Co-Head of Equity Trading, AllianceBernstein. “We look forward to effecting positive change for our clients and the industry.”

“When searching for the right investments at MaC, we seek out companies that use technology to disrupt industries and founders that are uniquely qualified to lead this change,” said Marlon Nichols, Co-Founder and Managing General Partner, MaC Venture Capital. “PureStream and its CEO Armando Diaz are changing the future of electronic trading. He and his team are innovating institutional-scale liquidity, as well as raising the standard of diversity to improve inclusive representation across the financial industry. MaC VC is proud to support PureStream as they continue to grow.” 

Source: PureStream