Codestreet, a provider of fixed income liquidity discovery and matching solutions, is planning to expand its product portfolio and extend its geographic reach following minority investments from venture capital firms Cerium Technology and Rochester Advisors.
Codestreet’s flagship product is Teamwork, a software-as-a-service solution that exploits the network across a fixed income trading desk to expose high value trading opportunities that can be offered to customers by sales people. Building on the concepts behind Teamwork, the company has developed Codestreet Dealer Pool, which expands the network effect across the dealer community to provide an anonymous dealer-to-dealer electronic trading platform dedicated to finding high-quality liquidity and matching positions in the corporate bond market.
Codestreet Dealer Pool went live in the US late last year and has attracted more than 30 dealers that are already in production or are in the process of joining the platform. On the back of new investment from Cerium Technology and Rochester Advisors, the company hopes to escalate sales, fast track product development and expand its global reach.
Howard Pein, CEO of Codestreet, says: “Sourcing liquidity has become a major concern for fixed income dealers and their clients. The new investment allows us to accelerate the growth of our liquidity discovery platform and deliver other innovative ways for customers to uncover trading opportunities, reduce balance sheet exposure and maximise every client facing opportunity.”
The company, which has offices in New York and London, and a workforce of 35 people, intends to roll out a series of new products and extensions to existing products through 2015. It also plans to implement Codestreet Dealer Pool in markets outside the US and build an expanded sales and marketing team to serve global markets.
Commenting on Codestreet’s capabilities, Eldon Klaassen, managing director at Cerium Technology, says: “Codestreet has created a truly unique approach that solves a growing problem – how to find liquidity in a market that is moving from balance sheet-driven to agency-style trading. The technology is brilliant, combining a virtual balance sheet for broker-dealers with an elegant online trading environment.”
Following the latest investment round in Codestreet, Klaassen becomes chairman of the board of directors, which also includes Pein, Clive Fleissig, president of Rochester Advisors, and executives from previous investors CS Investments and RW Pressprich.