Alpari Russia names its part-owner Andrey Dashin as Chairman, with an active role in management, despite his sole ownership of rival ForexTime.
LeapRate Exclusive…. The relationship between global FX broker Alpari, and its former subsidiary ForexTime (also known as FXTM), has become even more complicated. It had seemed that the two co-founders of Alpari, Cyprus-based Andrey Dashin and UK-based Andrey Vedikhin, had essentially gone their own ways when Dashin took over personal ownership of what used to be Alpari FS Cyprus, relaunching it late last year as ForexTime (also previously a ‘stealth’ Alpari brand). Dashin does retain a significant minority ownership stake in Alpari (we believe in the 30% range), and remains on the parent Alpari Group board. But that was it (we assumed) in terms of his involvement with Alpari, as he focused his time and energies on ForexTime, which in principle competes with ex-parent Alpari.
We understand that the split occurred following an internal disagreement on territory between Alpari UK and Alpari Cyprus, with each wanting to use the Alpari brand to go after fast-growing markets in Asia (and elsewhere), as well as a push by the Alpari Cyprus people to move more of the operations there, away from higher-cost London. But hey, these kinds of disagreements and power plays happen at many successful companies, and Alpari has been very successful lately, setting volume records month after month this year, both in Russia and elsewhere around the world.
Since its launch, ForexTime has been among the more aggressive online advertisers in the FX world — media buying, sponsoring conferences and events, and running interesting promotions such as a Swap Rates Free account, etc. — as Dashin’s management team led mostly by ex-Alpari personnel has built the ForexTime brand, which we understand has gone well. Dashin and his team, led by former Alpari Cyprus Chairperson Olga Rybalkina, picked an excellent time to launch a new Forex brand, with Retail FX volumes very strong in the first half of 2013 after nearly two years of slow global volumes.
Now comes word that Andrey Dashin has been named as Chairman of Alpari Russia, and will have what the company calls having a “more active role in the management of Alpari [Russia] and have more influence over the day-to-day operations of the company”. Clearly, Dashin’s ties have not been cut with Alpari.
How exactly does that work, being involved with two separate (and potentially competing) FX brokerages? It seems as if each Alpari Group company (as well as ForexTime) is focusing on different regions, different business strategies and different cultures. Mr. Dashin apparently believes that both ForexTime and Alpari Russia will be industry leaders. In summary… different market niches dictate different approaches.
We would note again that the new position for Andrey Dashin is for Alpari Russia, not for the parent Alpari Group (in which Mr. Dashin remains a significant shareholder and board member) nor its main operating subsidiary Alpari UK, which is separately run by Mr. Vedikhin and CEO Daniel Skowronski.