Cloud9 Announces Closing of Investment by J.P. Morgan, ICAP, and Barclays
J.P. Morgan, ICAP, and Barclays Lead Consortium Investment in Cloud9 Voice Trading Communication Platform
New York, NY, April, 12, 2016 - Cloud9 Technologies LLC, a cloud-based voice trading communication provider for financial firms and institutional traders, announced today the closing of an initial investment round with J.P. Morgan, ICAP, and Barclays. Cloud9 replaces traditional telephone-based trading hardware (turrets) to deliver secure, compliant, real-time voice communications for the trading community while adhering to stringent compliance and security standards required by financial professionals.
Built on WebRTC and supported by Amazon Cloud Infrastructure, Cloud9 has quickly become the most widely used cloud-based voice trading platform due to its reliability, resiliency, and ability to streamline trading technology and hardware overhead. Cloud9 believes that with increased adoption by the industry, it could save banks up to $1 billion in annual costs related to telecom equipment and services.
“Communications and collaboration products are undergoing a transformation with the introduction of cloud services and new technologies such as WebRTC,” said Jerry Starr, CEO and co-founder of Cloud9 Technologies. “We’re thrilled to be able to offer traders a modern voice communications alternative, and are excited to be a part of the rapidly changing technology landscape.”
Since launching in 2014, Cloud9 has steadily grown and currently serves more than 2,000 traders at 350 firms in 21 countries, an indication that financial institutions are ready to embrace the next generation of communications technology. This investment by J.P. Morgan, ICAP, and Barclays represents the confidence that these organizations have in Cloud9 to make significant changes within the sector and will enable the company to grow its business to meet industry demand.
“Cloud9’s technology is a very important advancement for the industry,” said Rick Smith, Head of Private Investments at J.P. Morgan Chase & Co. Inc. “It allows us to rethink our communication strategy for traders, and with it the economics of communication.”
Having seen the positive effects of Cloud9’s technology on their traders’ workflow as well as their own balance sheets, some of Cloud9’s investors are also its customers. ICAP is already using Cloud9 within its energy teams, while J.P. Morgan is working toward implementing the Cloud9 solution this year. Barclays also plans to work with Cloud9 in its development of the product for Barclays and to review opportunities where Cloud9 can help Barclays address expense and technological challenges related to voice trading.
“Working with our co-investors J.P. Morgan and Barclays, we are investing in Cloud9 to help drive this long overdue evolution,” said Steve Gibson, CEO, Euclid Opportunities, ICAP. “In line with our philosophy to support early-stage firms that have the potential to transform legacy infrastructure, we believe Cloud9 will be at the forefront of a market movement to adopt this compelling technology.”
“Soft turrets are clearly the direction of travel for the industry and their security capabilities and compliance functionality are continually improving,” said Sean Charlton, Head of Voice at Barclays. “We look forward to seeing Cloud9 roll out across the market.”
Wachtell, Lipton, Rosen & Katz served as legal advisor to Cloud9 in connection with the investment. Fenwick & West LLP served as legal advisor to the consortium of J.P. Morgan, ICAP, and Barclays.
Cloud9 Technologies is a cloud communications service provider that delivers high performance voice and collaboration services designed for the unique needs of institutional customers. The company delivers its services from the cloud using software applications that leverages the Internet and advanced WebRTC technologies.
In the financial industry, Cloud9 connects counterparties across all asset classes via a cloud-based voice platform that features end-to-end security and encryption. Cloud9 eliminates the infrastructure and expense associated with legacy turret systems and telecommunication services for trader voice. Our customer base includes top brokerages, sell-side firms, and tier one banks. For more information, visit: www.c9tec.com.
ICAP is a leading markets operator and provider of post trade risk mitigation and information services. The Group matches buyers and sellers in the wholesale markets in interest rates, credit, commodities, FX, emerging markets and equity derivatives through voice and electronic networks. Through its post trade risk mitigation and information services ICAP helps customers manage and mitigate risks in their portfolios. For more information, go to www.icap.com.
Through Euclid Opportunities, ICAP's early stage fintech investment business, ICAP supports innovative financial technology firms in the areas of post trade risk management, data and financial market applications. Euclid Opportunities forms part of the post trade division of ICAP, which also comprises TriOptima, Traiana, RESET and ICAP Information Services. Portfolio companies include Duco, AcadiaSoft, Enso Financial, OpenGamma and Abide Financial.