NEW YORK, Jan. 21, 2015 /PRNewswire/ -- Codestreet, the leading provider of fixed income matching and liquidity discovery solutions, today announced significant minority investments from leading venture capital firms, Rochester Advisors and Cerium Technology. The investments will help accelerate the growth of the Codestreet Dealer Pool ("CDP"), the firm's dealer-centric platform for solving the liquidity challenges of the corporate bond market.
Codestreet provides a range of technology solutions for fixed income front-office professionals, all with the primary purpose of optimizing dealers' use of capital and increasing riskless-principal business. The new investment will fast-track product development, as well as fund the hiring of an expanded sales and marketing team to significantly enlarge the global footprint of the 11 year-old firm, which already has more than half of the 20 largest banks as clients for one or more of its solutions.
"Sourcing liquidity has become a major concern of fixed income dealers and their clients," said Howard Pein, CEO of Codestreet. "This 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 maximize every client-facing opportunity."
More than 30 dealers are in production or in the process of joining the CDP, an anonymous platform for matching positions and axes in the corporate bond market. The CDP links the liquidity of each participating dealer – which to this point have used Codestreet internally to match off-setting or complementary positions and orders – allowing them to exploit the 'network effect' across the dealer community and discover previously hidden pockets of liquidity.
"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," said Eldon Klaassen, Managing Director at Cerium Technology, who has been appointed Chairman of the Board. Klaassen has more than 35 years' experience as a successful entrepreneur and innovator in financial technology.
"We are excited about our investment in Codestreet. The company has truly innovative solutions for discovering the 'other side of the trade' and tremendous potential for long-term growth. This partnership will allow the company to strengthen its position as the clear leader in building next-generation networks for fixed income trading," said Clive Fleissig, president of Rochester Advisors.
Klaassen and Fleissig will join Henri Talerman of CS Investments and Jim McGibbon of RW Pressprich on the Codestreet Board of Directors.
Since 2003, Codestreet has been focused on helping the fixed income broker dealer community do more riskless and risk-reducing business by empowering our customers to identify and execute profitable trades. Codestreet enables bank and broker-dealer clients to maximize every trading and client facing opportunity ensuring that each client call and interaction is prioritized, relevant and value-added, resulting in improved relationships and customer service. The company's flagship product, Teamwork, enables trading desks to better collaborate with Sales to service customers. It is paired with the recently launched Codestreet Dealer Pool, an anonymous dealer-to-dealer only electronic trading platform designed to generate new liquidity. Codestreet is headquartered in New York, with an office in London.
About Cerium Technology
Cerium Technology is an investment firm focused on energy, trading and technology. Cerium has current investments in oil and gas exploration and production, mobile energy analytics, and advanced trading technology, including Allegro Development, Terebras Resources, and Volatix. Cerium invests in companies with unique assets and ideas that can be enhanced by their expertise and vision.
About Rochester Advisors
Rochester Advisors is a boutique investment firm specializing in assisting ultra-high net worth families with their investments and other complex financial aspects. Its services include developing investment strategies, overseeing tax planning, legal compliance, governance and risk management.