Dash Financial to Acquire Prime Broker eRoom Securities

Dash Financial Technologies, a trading technology provider for institutional entities, is set to acquire eRoom Securities, LLC, a Chicago-based provider of prime brokerage solutions, the firm announced this Thursday.

According to a statement released by Dash Financial, it has signed a definitive agreement for the acquisition, with the transaction expected to close in the first quarter of 2019. Once acquired, eRoom Securities will be rebranded as Dash Prime, to bring technology and services to the professional trading community.

Currently, eRoom is a provider of brokerage services ranging from multi-asset trading technology, agency Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term, Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term, reporting and clearing services. The company offers these services to institutions, hedge funds, and professional investors. Post-acquisition, eRoom will continue to be led by its current management team, which is led by Collin Carrico and Ben Schwartz.

Commenting on the transaction, Peter Maragos, the CEO and Co-Founder of Dash Financial Technologies said: “The professional trading community requires the kind of high performance, customizable technology solutions that lend themselves perfectly to Dash’s transparent, innovative and technology-driven approach.

“Collin and Ben have built a tremendous business with a loyal client following – we look forward to partnering with their talented team to create Dash Prime and expanding the offering to deliver it to a wider segment of the professional trading community.”

Dash Financial and eRoom Acquisition Subject to Regulatory Approval

The deal is now subject to customary closing conditions, such as receiving regulatory approvals. For the transaction, Sandler O'Neill + Partners, L.P. was the financial advisor for eRoom, and Paul Hastings LLP served as its legal advisor. For Dash, Kirkland & Ellis LLP was the company’s legal advisor.

“Joining forces with Dash puts us at the leading edge of technology and enables us to broaden our prime services suite to create more opportunities for our current and future clients,” added Carrico.

“With access to a much wider suite of institutional solutions, we can now offer our clients the ability to solve more problems while passing along the scale and efficiencies technology enables.”