Cboe Europe announces the launch of Cboe BIDS VWAP-X, a new service enabling trading at the VWAP price

• A unique, exchange-operated, path-crossing service for European equities, allowing participants to source and match liquidity based on a standard VWAP methodology
• Offered through Cboe BIDS Europe, the region’s largest block trading platform, using its proven conditional trading and trade execution workflow

LONDON, July 8, 2024 /PRNewswire/ — Cboe Europe, the largest pan-European exchange¹ and a division of Cboe Global Markets, Inc. (Cboe: CBOE), today announced plans to launch Cboe BIDS VWAP-X, a new trading service that allows participants to source and match liquidity to a futures reference price. The service is expected to launch in early fourth quarter 2024, subject to regulatory approvals.

This first-of-its-kind exchange-operated cross-trading service for European equities will be provided as a service of Cboe BIDS Europe, the region’s largest block trading platform.². Cboe BIDS VWAP-X is designed to use BIDS’ proven conditional trade execution and trading workflow to match orders based on a standard exchange-regulated volume-weighted average price (VWAP) methodology.

Natan TiefenbrunPresident of North American and European Equities at Cboe Global Markets, said: “As with all of our trading innovations, this new service is driven by industry demand to enable end investors to achieve better execution results. We believe the secular growth of systematic and passive investing has led to an increase in crowd-trading strategies that typically seek to average out a price over a defined period of time. This new service allows natural buyers and sellers to cross their crowd-traded order flow at a VWAP price without incurring spread costs. Complementing our existing suite of order book offerings, Cboe BIDS VWAP-X provides users with a venue-based solution to match scheduled volume based on an exchange-regulated VWAP methodology.”

Stephen BertePresident of BIDS Trading, said: “Cboe BIDS VWAP-X demonstrates our commitment to innovation and developing new products that meet the evolving needs of our clients and the equity market. We are pleased that this new service will help make BIDS an even more integral part of clients’ toolkit for accessing the broadest possible range of liquidity in Europe” . “

Cboe BIDS VWAP-X will allow market participants to submit conditional VWAP indications of interest within the service. Once a potential match is found, firms will be prompted to confirm their IOIs, and once eligible order quantities have been matched, a standard matching cycle will take place to calculate the VWAP transaction price per interval. Trades will be flagged as off-book and on-exchange executions in real-time, allowing them to be centrally cleared through Cboe Europe’s interoperable clearing model.

The service will benefit from BIDS’ established protections against information leaks surrounding IOIs, including disclosure and interactions controlled by customizable tools and scorecarding and screening of counterparties based on past trading behavior.

At launch, the service will be accessible to sell-side participants via FIX connectivity. Customer testing will begin in Q3 2024, ahead of a launch in early Q4 2024, subject to regulatory approvals.

The Cboe BIDS VWAP-X pricing model will be competitive, transparent and publicly available. Pricing details will be communicated closer to the launch date.

For further information please contact the sales team ((protected email)) or read the FAQ.

About Cboe Global Markets, Inc.

Cboe Global Markets (Cboe: CBOE), the world’s leading network of derivatives and securities exchanges, provides leading-edge trading, clearing and investment solutions to individuals around the world. Cboe provides trading solutions and products across multiple asset classes, including equities, derivatives, currencies and digital assets, around the world. North America, Europe And Asia Pacific. Above all, we are committed to building a trusted and inclusive global marketplace that empowers people to pursue a sustainable financial future. To learn more about the Exchange for the World Stage, visit www.cboe.com.

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Cboe Global Markets, Inc. and its affiliates do not recommend or make any representation regarding the merits of any securities, futures contracts or investments, or any third-party products or services. Investors should conduct their own due diligence regarding their securities, futures contracts and investment practices. This press release speaks only as of this date. Cboe Global Markets, Inc. undertakes no obligation to update the information contained herein. Nothing in this announcement should be construed as a solicitation to buy or an offer to sell any securities or futures contracts in any jurisdiction in which the offer or solicitation would be unlawful under the laws of such jurisdiction. Nothing in this communication constitutes tax, legal or investment advice. Investors should consult their own tax or legal advisors for advice and information regarding their particular circumstances.

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This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve a number of risks and uncertainties. You can identify these statements by forward-looking terminology such as “may,” “could,” “should,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential” or “continue” or the negative of these terms and other comparable terminology. All statements that reflect our expectations, assumptions or projections about the future other than statements of historical fact are forward-looking statements. These forward-looking statements, which are subject to known and unknown risks, uncertainties and assumptions about us, may include projections of our future financial performance based on our growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from those expressed or implied by the forward-looking statements.

We operate in a highly competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible to predict all risks and uncertainties or assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.

Certain factors could cause actual results to differ, including: the loss of our exclusive right to list and trade certain index options and futures products; economic, political and market conditions; compliance with legal and regulatory requirements; price competition and consolidation in our industry; decreases in trading or clearing volumes, market data fees or a change in the mix of products traded on our exchanges; changes in laws or regulations or changes in tax regimes; our ability to protect our communications systems and networks from vulnerabilities and security breaches; our ability to attract and retain qualified management and other personnel; increasing competition from foreign and domestic entities; our dependence on and exposure to third-party risks; global expansion of operations; factors that impact the quality and integrity of our indices and other applicable indices; our ability to effectively manage our growth and strategic acquisitions or alliances; our ability to operate our business without infringing the intellectual property rights of others and the costs associated with protecting our intellectual property rights; our ability to minimize the risks, including our credit, counterparty, investment and default risks, associated with operating a European clearing house; our ability to manage trading and clearing volume and transaction traffic, including significant increases, without failure or degradation in the performance of our systems; misconduct by those who use our markets or products or for whom we clear transactions; challenges related to our use of open source software code; our ability to meet our compliance obligations, including managing potential conflicts between our regulatory responsibilities and our status as a for-profit company; our ability to maintain BIDS Trading as an independently managed and operated trading platform, separate and distinct from and not integrated with our registered national securities exchanges; damage to our reputation; the ability of our compliance and risk management practices to effectively monitor and manage our risks; restrictions imposed by our debt obligations and our ability to make payments or refinance our debt obligations; our ability to maintain an investment grade credit rating; impairment of our goodwill, long-lived assets, investments or intangible assets; the impacts of pandemics; the accuracy of our estimates and expectations; risks of litigation and other liabilities; and risks related to digital assets, including the liquidation of the Cboe Digital Spot crypto market, operation of a digital asset futures clearinghouse, cybercrime, changes in digital asset regulation and fluctuations in digital asset prices. More detailed information on factors that could affect our actual results can be found in our filings with the SEC, including our Annual Report on Form 10-K for the year ended December 31, 2019. December 31, 2023 and other documents filed from time to time with the SEC.

We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, and expressly disclaim any obligation to do so, except as required by law. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.

SOURCE Cboe Global Markets, Inc.