New York (HedgeCo.Net) – Dash Financial Holdings, LLC, (Dash) announced, this morning, the completion of three transactions – the management buy-out of the Dash Financial division and all of its assets from Israel A. Englander & Co., the acquisition, of Electronic Brokerage Systems (“EBS”) from Frontline Technologies, Inc. (TSXV – FLC), subject to FINRA approval, and the placement of a significant private equity investment in the new firm. These three transactions mark the formal independence of Dash and the introduction of three additional product lines – the Dash High Frequency Trading platform (“Dash HFT”), their Ultra-Low Latency environment for colocation (“Dash ULL”) and Dash Clearing (self-clearing) for both equities and options.
In an open letter to clients, the partners of Dash shared thoughts on the firm’s approach to building a start-up business on Wall Street. “At its inception, we were determined to build a business on Wall Street which catered to our want, as seasoned traders and industry professionals, for pure agency brokerage via a bleeding-edge technology platform, replete with a suite of truly intelligent algorithms, and backed by the service model we longed for during our previous lives on both the buy- and sell-sides of the market. We have tirelessly developed, and refined, our product and service offerings during the past 18 months of incubation – driven by the conviction that The Street is filled with people, like us, who yearn to conduct business the right way. Our initial efforts have been focused on this proof-of-concept: a values-driven business built on fully-transparent, innovative technology can, indeed, prosper on Wall Street. The deals announced this morning are the byproduct of clarion focus on this intent. Incubation complete. Concept proved.”
Commenting further on the transactions, Dash partners said, “Integrity as a broker connotes a wholly agency capacity, transparent order execution and a cost-plus pricing model. All-in pricing perverts incentives and impedes true agency in brokerage. Myriad opportunities exist to monetize trade execution. When any incentive exists to execute trades in a manner beneficial to the broker, customers must “trust” that their brokers are acting in their best interest. Trading in our truly cost-plus pricing model, supported by real-time trade execution details as are provided in our proprietary, glass-box Dashboard suite of reporting tools, our customers benefit directly from all monetization of order flow. When acting solely as agent to a customer, with a cost-plus commission model, incentives are perfectly aligned and a broker’s fiduciary obligations are satisfied. Indeed, we define Best Execution not as a “term of art” but as the best possible trade execution – inclusive of all possible enhancements to our clients’ profitability. We believe that we – in our client-partnerships – can build a profitable business operating on these virtues.”