Pan-European stock exchange Cboe Europe announces that it has secured the support of a broad range of participants for Cboe BIDS VWAP-X, its new trading service allowing participants to source and match liquidity at a forward benchmark price.
This service is scheduled to launch on October 21, subject to regulatory approvals.
Early adopters of the Cboe BIDS VWAP-X service include Bernstein, BNP Paribas, BMO Capital Markets, Instinet Europe, Jefferies, KCx and Virtu Financial.
Natan Tiefenbrun, President, North American and European Equities, Cboe Global Markets, said:
“We are delighted to have secured such a strong group of initial Participants to support Cboe BIDS VWAP-X and are in active discussions with numerous others who are looking to utilise this service at the earliest opportunity. This demonstrates that we’ve listened to our Participants to meet their needs for an exchange-regulated crossing platform to execute participative volume at an interval-based price. We’re excited to be bringing this first-of-its-kind service to the European equities market and help enhance execution outcomes for end investors.”
Cboe BIDS VWAP-X is an exchange-operated trajectory crossing service for European equities, which allows participants to source and match liquidity at a forward benchmark price. It is being provided as a service of Cboe BIDS Europe, a block trading platform utilising BIDS’ proven conditional trade negotiation and execution workflow to match orders based on a standard, exchange-regulated volume weighted average price (VWAP) methodology.
Cboe BIDS VWAP-X will allow market participants to submit conditional VWAP indications of interest (IOIs) into the service. Once a potential match is found, firms will be invited to firm-up their IOIs, and after eligible order quantities are matched a standard matching cycle will take place to calculate the interval-VWAP trade price. Trades will be reported as off-book, on-exchange executions in real-time, allowing them to be centrally cleared through Cboe Europe’s interoperable clearing model.
The service will benefit from BIDS’ established protections against information leakage surrounding IOIs, including disclosure and interactions controlled by customisable tools and counterparty score-carding and filtering based on past trading behaviour.
At launch, the service will be accessible by sell side participants through FIX connectivity. Customer testing is already underway ahead of a planned launch on October 21, subject to regulatory approvals.
