Deep Bench with a High Level of Trading Expertise

Dalzell Trading has brought together highly skilled traders from the buy-side and sell-side to provide our clients with a unique solution to their equity and options trading needs. Our team is led by former Heads of Trading at BlackRock and Janney.

Our scope of experience gives us an unparalleled perspective of your trading needs. We are experienced in algorithmic trading, block trading, options trading, basket trading and protecting trades from predatory high frequency trading.

No two clients are alike, so Dalzell Trading provides our clients with custom-built trading solutions based on their specific needs. The range of our current client base varies from quant-based hedge funds to larger, long-only investment managers.

Our traders have covered their manager's needs during a wide range of market conditions, from severe corrections to benign markets, to bull markets. We are not the typical prime broker or sell-side trading desk where most of their traders may have less than five years of experience.

View Us as Your Professional Buy-Side Trading Desk

We combine current trading technology with the skills of our highly experienced traders to tailor trade execution solutions that are specific to each client’s needs. We have created a client-focused approach at Dalzell Trading that fosters professional and close-knit trading relationships with each client. We ask "what is important to you?", we gain an understanding of your investment strategy and your desired trading outcomes, and then we develop trading strategies that work best for you.

This allows us to execute as your dedicated buy-side trading desk. We are an independent, conflict-free firm. Our clients trade with anonymity as our counterparties only see Dalzell Trading executing trades. Additionally, we protect our client’s orders from information leakage as we do not “shop” orders to the street and we have no prop trading – further aligning the interests of Dalzell Trading with our clients’ interests.

We will also act as an extension of existing buy-side trading desks who wish to keep their in-house traders. Traders can utilize our exclusive, proprietary trade execution venues & strategies. Additionally, managers who wish to have a robust DR/BCP are able to retain Dalzell Trading for complete trade execution services during disaster recovery or when traders are out of the office.

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Regulatory Advisory Services

Our team of experienced professionals can provide unique solutions to many of the regulatory challenges that professional money managers face today.  We have advised and consulted to large institutional managers and start-up managers providing best execution policy and procedure, best trading practices expertise, and compliance solutions.  Our experience providing solutions to clients in these areas gives us a unique value add for our clients.

Outsourced Trading FAQ

• What Does Dalzell Trading do?

  Dalzell Trading provides professional equity and options trading to Hedge Funds and Investment Managers, alleviating each manager’s need and expense of hiring in-house traders. We become your outsourced buy-side trading desk--we focus on providing a higher level of trade execution quality and service than typical inexperienced sell-side desks, prime brokers, and custodians that are used by most managers. This allows managers to improve their ability to achieve and illustrate best execution while focusing on portfolio management and asset gathering. We will also act as an extension of existing buy-side trading desks who wish to keep their in-house traders; this typically includes access to our proprietary trade execution venues and strategies, and our DR/BCP solution.

• How is Dalzell Trading Structured?

  Dalzell Trading is a limited-liability company that is 100% owned by David J. Dalzell.

• What is the cost of using Dalzell Trading?

  There is no expense to a firm for using Dalzell Trading to execute the firm’s equity and options trades. Dalzell Trading charges a cents per share (cps) commission to execute each firm’s trades, the same way each firm currently pays broker commissions. This allows each firm to effectively transition their cost of trading from fixed to variable (paid by their commission pool).

• How will the trades be executed and where?

  Dalzell Trading acts as your buy-side trading desk; our interests are fully aligned with your interests. Unlike many of our competitors, we are an independent conflict-free firm, giving us the luxury of executing your trades at venues where we feel the best price can be found—truly focusing on best execution. The trades will be executed using Dalzell Trading’s OMS (Liquiditybook), EMS (REDI+) and Trading Analytics Platform (Eikon). The OMS will be directly linked to portfolio managers’ currently existing order routing system (OMS, FIX, email or text messaging) with trades flowing seamlessly from each portfolio manager to Dalzell Trading’s OMS. Dalzell Trading will execute the trades through its vast access to virtually all major trading destinations, venues, exchanges, broker dealers, and strategies.

• How will I get my trade execution details?

  Trade execution details will be fed back to Dalzell Trading’s clients on a real-time basis. When the order is completed, the total shares traded and an average price will be given to the manager, with allocations sent to our clearing firm for settlement with each client’s prime broker or custodian.

• What types of securities can I trade through Dalzell Trading?

  Equity and options trades can be executed by Dalzell Trading and their trading partners.

• Who will be trading my orders?

  Your orders will be traded by professional traders employed by Dalzell Trading. These are veteran buy-side and sell-side traders with 20+ years of experience. Our traders develop a close partnership with each manager, learn your investment process, and tailor the trading process to suit your needs. We have trading desks in Boston and Philadelphia.

• How do I sign up for your service?

  All account opening paperwork will be initiated by a Dalzell Trading professional who will walk you through the required information needed to become a trading partner of the firm. This is a painless process that includes the same type of new account paperwork that a manager would submit to any broker dealer. The entire process from beginning to end should not take more than one week.