Cboe’s BIDS VWAP-X Receives Sell-side Support Ahead of October Launch

Cboe Europe has announced the support of a range of participants for its new trading service Cboe BIDS VWAP-X. The new offering will allow users to source and match liquidity at a forward benchmark price and is scheduled to launch on October 21, subject to regulatory approvals. Early adopters of the new trading service include Bernstein, BNP Paribas, BMO Capital Markets, Instinet Europe, Jefferies KCx and Virtu Financial. Cboe BIDS VWAP-X is being provided as a service of Cboe BIDS Europe and will utilize BIDS’ conditional trade negotiation and execution workflow to match orders based on a standard, exchange-regulated volume weighted average price (VWAP) methodology. Market participants will be able to submit conditional VWAP indications of interest (IOIs) into the service. Following a potential match, users 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, the firm explained. Trades will be reported as off-book, on-exchange executions in real-time, which will then be able to be centrally cleared through Cboe Europe’s interoperable clearing model. The service will be accessible to the sell-side through FIX connectivity at launch.