PureStream to Launch US-Based ATS Powered by Nasdaq

PureStream Trading Technologies has selected Nasdaq to power its new alternative trading system (ATS) via the Nasdaq Execution Platform.

The ATS is expected to launch in Q2 2021. PureStream will offer brokers and their institutional clients greater bandwidth to get more liquidity at a better price and security. The partnership with Nasdaq will ensure PureStream’s ability to integrate new applications and functionalities as the company evolves and expands its platform.

Nasdaq will fully host the PureStream ATS on its Nasdaq Execution Platform, including managing system operations, as well as portions of risk controls, venue surveillance, trade reporting, and clearing facilitation. Nasdaq powers more than 2,300 companies in 50 countries that span the world’s financial industry.

Armando Diaz, CEO, PureStream Trading Technologies, said: “Our vision for creating this new institutional trading venue would not have been possible without our partnership with Nasdaq and leveraging its industry-leading market technology. As we launch our endeavor, time to market, infrastructure reliability, and scalability are critical components for success. We are confident that by utilizing Nasdaq’s execution platform provides us with an unparalleled advantage and best-in-class trading experience for our clients and partners.”

Valerie Bannert Thurner, Senior Vice President and Head of the Buy-Side and Sell-Side Solutions, Market Technology, Nasdaq, added: “By changing the basis of a match and virtualizing price discovery, PureStream’s unique business model is enabling algorithmic orders to search, find, and yield more liquidity faster without price impact. In partnering with Nasdaq, PureStream will seamlessly leverage our market operating experience and technological scale to effectively manage its internal marketplace, further reduce expenses, and provide an opportunity for more revenue-generating activities as it launches its innovative market.”

PureStream is a technology platform company with a singular focus on making institutional trading scale efficiently and securely. In February 2021, the firm closed a Series A fundraising.

The firm raised $14 million in a round led by Nasdaq Ventures, Goldman Sachs, BMO Financial Group, Bank of America, AllianceBernstein, and MaC Venture Capital.

The funding will support 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, the firm claims.

Its 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.

“Electronic trading has not scaled for institutional investors because the basis of venue logic, quantity at a moment in time, has become outdated. 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”, said CEO Armando Diaz at the time of the fundraiser.