Cboe BIDS VWAP-X
Your Pan-European trajectory crossing service
The first exchange service
for
trading at VWAP
Cboe BIDS VWAP-X is a first-of-its-kind, exchange-operated trajectory crossing service for European equities allowing participants to source and match scheduled volume which is executed at a forward benchmark price.
VWAP-X executes trades based on a standardised, exchange-regulated volume weighted average price (VWAP) methodology, helping investors to meet their participation-based algorithm schedules and price objectives.
It is being offered as a service of the Cboe BIDS Europe platform, the region’s largest block trading platform, utilising its proven conditional trade negotiation and execution workflow.
Why use Cboe BIDS VWAP-X?
On Exchange Solution
Offers a venue-based solution for trajectory crosses, with pan-European stock coverage from 15 countries.
Natural Contras
Encourages interactions between natural buyers and sellers with a common execution objective and benchmark.
Standardised VWAP Price
Trades executed based on a standardised, exchange-regulated VWAP price methodology.
BIDS Europe Infrastructure
Easily accessible through the proven Cboe BIDS Europe infrastructure, the region's largest block trading platform, with established connectivity among Europe’s leading sell-side and buyside firms.
Unique MIC Code
All trades are designated as off-book, on-exchange transactions, uniquely identified on data feeds with new sub-MIC codes of XWAP (Cboe UK) and VWAP* (Cboe NL) and centrally cleared.
*Subject to regulatory approval.
How it works
Step 1:
VWAP-IOIs are submitted to the Cboe BIDS Europe system to identify potential matches.
Step 2:
Once a match is found, the firms are invited to 'firm-up' their IOI within a specified time period as part of a bilateral trade negotiation.
Step 3:
Once all firm-ups are received, eligible orders are matched with an agreed quantity, and a matching cycle then begins to determine the interval-VWAP execution price.
Step 4:
The trade is executed on-exchange and reported through the Cboe CXE or Cboe DXE market data feed as an off-book, on-exchange, trade in real time. Each execution is uniquely identified with the new sub-MIC codes of XWAP (Cboe UK) and VWAP* (Cboe NL).
*Subject to regulatory approval.
Step 5:
The trade is sent to clearing under Cboe Europe's interoperable clearing model.