Startup Stories: Expanding the Benefits of Automated Market Trading
A conversation with David Campbell ’22, whose startup ICP Securities (ICPS) leverages its own algorithm to increase liquidity for small- and mid-cap stocks.
In this series, Karen Guzman talks to student and alumni entrepreneurs about how they are making an impact with their startups.
Founders: David Campbell ’22 and Ian Clark
Venture: ICP Securities (ICPS) specializes in automated market making and liquidity provision. The firm uses its proprietary market making algorithm, ICP Premium, to deliver liquidity and execution services to public issuers and institutional investors in Canada.
What was the moment when you had the idea for this startup?
I work with my co-founder, Ian Clark, at Insight Capital Partners, a capital markets consulting firm. We both have extensive backgrounds in institutional trading. After graduating from Yale SOM in 2022, my experiences and MBA education helped me spot market deficiencies, particularly in liquidity and trading solutions being left behind in the cross-section of traditional and automated trading platforms for small- and mid-cap stocks. We wanted to address this.
What’s the problem you’re trying to solve or the gap that you’re trying to fill?
In capital markets, automated trading is well established for larger cap equities. But small and mid-cap markets can be hindered by issues like low liquidity and inefficient trading. Investors too often pass on small- and mid-cap stocks that fly under the radar of larger institutions or automated trading strategy providers.
Our proprietary technology, ICP Premium, is a co-located, low-latency algorithm that provides an automated solution for this market segment. By speaking the “language of speed” and demonstrating a low-latency automated trading solution, we can give many of these securities significant improvement in average daily trading volumes and in quote health.
What was the most important resource Yale SOM contributed to your startup?
The Competitive Strategy, Managing Groups and Teams, the Future of Finance, Customer, Colloquia, Negotiations, Workforce, Legal Context of Management and Entrepreneurial Finance courses all played vital roles in helping us establish and shape our firm and our flagship product. The combination of resources, classmates, and faculty were key in supporting us to move boldly forward to create change in a 160-year-old industry
What’s the biggest milestone your startup has hit since graduation?
Our firm was the first to be evaluated and approved by a newly merged regulatory body in Canada, now called the Canadian Investment Regulatory Organization (formerly IIROC). Achieving our registration in an ultra-expedient fashion was an exceptional accomplishment noted by industry peers and regulators alike.
