FinOps Report: FINRA to Broker-Dealers: Justify Order Routing Perks

By Jen Fagenson

December 11, 2017

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Dash CEO Peter Maragos spoke with FinOps Report on FINRA’s request of detailed information on how they quantify the benefits to their customers when orders are sent to venues with rebates and other fee incentives. Commenting on the “all-in” commission model, where broker-dealers charge an agreed upon per share price inclusive of all costs, broker-dealers have an incentive to minimize their fees, Maragos says that Dash has adopted “cost-basis” pricing as its standard business model.

“Not only does cost-plus pricing remove a broker’s conflict of interest, but it also allows investors of all types to be rewarded for price formation,” explains Peter Maragos, chief executive officer. “That price formation is extremely important in today’s fragmented marketplace where investors have difficulty finding liquidity.”

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