Cape City Command, a company that has developed software to help make electronic trades of securities more efficient, has raised $2 million in funding.
The financing is a mix of debt and equity and it comes from a single investor, according to securities filings. The first sale of securities for the Wilmington company occurred in 2011; the company indicated in the filing the offering would last more than a year. Cape City Command said in the filing that $150,000 of the funding would be used for operating expenses that include salaries.
Cape City Command’s software monitors latency, the microseconds of delays in electronic trades. These delays are unnoticeable to humans but in the world of electronic trading they put financial institutions at a competitive disadvantage.
The company’s website says it continuously and automatically monitors trading sessions, in contrast to other monitoring and network tools that it characterizes as “passive.” In Cape City Command’s release of its software last year, the company said that its technology can direct each trade to the fastest sessions.
Earlier this year, Cape City Command released a new tool that allows users to build a “latency profile” to show traders where they are experiencing latency and where they can improve. At the time, Tony Pettipiece, the company’s global head of sales and marketing, said that even the best built and best monitored infrastructures can suffer latency beyond their control and that session latency fluctuates in real time.
“Early feedback has shown the Latency Evaluator to be a real eye-opener in this area, as it highlights the lost opportunities with doing business as usual, while providing demonstrable recommendations on where improvements can be made,” Pettipiece said in a statement.