Forefront Communications

Markets Media: Dash Dives Into Portfolio Trading

Forefront Communications

Sam Belden

Sam Belden

As the portfolio-trading market continues to grow, agency-only brokerage Dash Financial Technologies has launched it first portfolio-trading algorithm for the buy side.

“We felt strongly that the market is underserved by some of the legacy portfolio-trading solutions available today,” Barbara Francis, director of portfolio trading at Dash, told Markets Media.

Francis and Jennifer Hubbs, both of whom joined the company in January, spent the past eight months spearheading the launch of the new algorithm.

“To do this, we had to build not only the appropriate execution workflow, but also advanced pre-trade and risk model, real-time analytics, and data visualizations to alert the user to outliers and areas to focus on, and then finally an interrogation with our existing post-trade transparency tools to measure routing and execution performance,” said Francis.

The algorithm sports a proprietary multi-factor risk model, covariance matrix, and an optimization engine to create trading waves that minimize the risk of the residual portfolio, subject to certain user-defined constraints.

It also supports implementation shortfall and interval volume-weighted average price benchmarks as well as offering aggressiveness controls.

The offering is geared to help users optimally share and execute baskets of orders while taking into account their specific cash benchmarks and style requirements, according to Francis.

To read the full article, click here.