The PHLX, in conjunction with Universal Trading Technologies Corp., unveiled an entirely new trading system based on volume weighted average price. Known as the eVWAP™ Trading System, this unparalleled pricing and transaction facility allows institutional clients, such as mutual and pension funds, to receive a guaranteed, theoretically fairest price on their stock transactions. Volume weighted average price is recognized by the U.S. Bureau of Labor as the fairest execution price, and is used by a variety of rating agencies to evaluate the performance of institutional brokers.
The eVWAP™ system allows users to enter orders from any location prior to the market opening. Eligible orders are matched and participating parties receive their trade confirmation prior to the opening. The final eVWAP™ at which the trades are confirmed is disseminated after the close of the trading day. With anonymous encrypted data transmission, and the reliability and security of trading on the nation's oldest securities exchange, eVWAP™ is establishing a new standard for institutional equity transactions.
