PureStream Trading Technologies

PureStream is an alternative trading system (ATS) that aims to re-engineer the price and liquidity discovery process for institutional traders. It uses open-ended liquidity transfer rates, akin to data networks, enabling institutional investors to execute trades up to 40x faster without price impact on their portfolio implementations. 

PureStream is exclusively available to broker-dealers and does not connect directly with the buy side. PureStream claims to provide brokers and their institutional clients with improved bandwidth to access liquidity faster, more cost-effectively, and with greater security. The company claims to address the gap in the electronification of equity markets, which has negatively impacted traders' ability to match directly with other institutional liquidity. PureStream's innovative streaming block order type enables algorithms with different strategies to match at the parent level, achieving their strategies more efficiently without sending orders to the broader market.

The ATS operates a business model that matches with compatible liquidity, without selling data, employing market makers, or engaging in payment for order flow. It uses percentage rate-based order types to match orders, with the matched orders' percentage rate applied to subsequent trades reported to the consolidated tape, providing an alternative to discovering prices solely from the national best bid and offer quote. 

In Q3 2023, PureStream recorded 40 million total trades, marking an increase of 2.5x YoY.

Key customers and partnerships

PureStream’s customer base includes established financial institutions such as the Bank of America.