The eVWAP Intelligent Match System allows pre-opening order matching for large-sized equity orders at a standardized volume weighted average price, with absolute, end-to-end electronic anonymity including "straight through" clearing and settlement. When implemented in Canada, eVWAP will allow institutional money managers and broker-dealers to execute securities trades of Canadian listings globally at its precise volume weighted price with the assurance of anonymity. Anonymity helps reduce "market impact" costs - that is, the price reaction in the market when someone tips their hand.
Barbara Stymiest, President and CEO of the Toronto Stock Exchange said, "notwithstanding the recent surge in retail investing, large institutional investors still account for the majority of the total value of customer trading on the TSE. These institutions are placing new demands on traditional exchanges to handle large block trades efficiently and anonymously. The TSE is highly attuned to the special needs of institutions that want to trade large positions at a fair market price, without tipping their hands."
She added, "the eVWAP is just one of a number of enhancements the TSE hopes to introduce in 2000. We are continuing with efforts to improve the market through price time priority and a number of anonymous trading features including a call market and a market on close."
Fredric Rittereiser, ATG Chairman and Chief Executive Officer, said, "The fact that the Toronto Stock Exchange, long a leader in global electronic trading, recognized our concept of intelligent matching systems and agreed to using our eVWAP as a facility of the TSE places Ashton in the middle of the very important Canadian securities market."
