The TSE eVWAP is an anonymous, pre-opening order matching system to execute orders at a standardized volume weighted average price. Participants will be able to receive confidential, binding match reports before the TSE market opening with the eVWAP Price ascribed to such trades following the market close. Key users of the system are anticipated to be Canadian, U.S. and other global institutional investors.
"Large institutional investors are significant contributors to the liquidity and trading activity at the TSE. The eVWAP will provide for the special needs of these key customers who want to trade large positions at a fair market price, without tipping their trading intentions," said Adam Conyers, Senior Vice President, Market Services at the TSE.
Fredric Rittereiser, Ashton Chairman and Chief Executive Officer, stated, "our system's features providing the ability to seek size with absolute anonymity and no market impact, as well as to trade blocks at a single superior price will be important to our success in Canada."
William Uchimoto, Ashton General Counsel, remarked, "our system has received an exemption from the short sale rule to facilitate liquidity commitments of TSE participating organizations." He added, "that issuer buy-backs through eVWAP also have been exempted from price limitations that normally require an issuer purchase to be made at a price which is not higher than the last independent trade."
The TSE consistently ranks among the world's top exchanges by market capitalization and trading volume. In 2000, the average daily value of TSE trading exceeded $3.7 billion. The TSE provides investors with a well-regulated, fair and accessible marketplace.
Ashton is an eCommerce company developing a network of affiliated companies. Ashton companies build and market technology-based products and services enabling businesses and consumers to execute better-informed transactions within global electronic marketplaces. Ashton creates electronic transaction and distribution systems for the global financial services industry utilizing advanced telecommunication, computing, data and information security, and Internet technologies.
Ashton Technology Canada, headquartered in Toronto, Canada, was formed as a joint venture and subsidiary company of Ashton. Ashton Technology Canada will develop, market, and introduce electronic trading systems in the Canadian marketplace. The company will be the operator of the TSE eVWAP facility.
The forgoing press release contains forward-looking statements based on current management expectations. A variety of important factors could cause results to differ materially from such statements. Factors that could cause actual results to differ from current expectations include the projected volume of orders placed through the TSE eVWAP facility, difficulties in deploying Ashton's technology in Canada, industry trends, and competition. These and other risks are described in greater detail in Ashton's filings with the Securities and Exchange Commission, including those on forms 10-K and 10-Q.
