Daily TribuneThe ability to easily place VWAP-based orders expands the options available to investors, especially those who prefer to use this approach in trading.
Stock market operator Philippine Stock Exchange Inc., or PSE, will open Volume Weighted Average Price, or VWAP, trading on 1 March 2024.
This comes after the Securities and Exchange Commission approved PSE’s VWAP trading rules as well as the briefing of trading participants, or TPs and onboarding of authorized traders of TPs interested in this facility.
“The ability to easily place VWAP-based orders expands the options available to investors, especially those who prefer to use this approach in trading,” said PSE president and CEO Ramon S. Monzon.
Price volatilities checked
”We expect foreign and institutional investors who prefer to look through price volatilities during the trading day and focus on the average price instead to avail of this facility,” he added.
VWAP trading may only be done within a 15-minute window after the market’s run-off period, or from 3 p.m. to 3:15 p.m., using the price computed by the Exchange. VWAP trades may only be executed by authorized salesmen or traders of a TP.
PSE studied the VWAP rules of other bourses and used them as basis for the Exchange’s own VWAP trading rules.
