The Philippine Stock Exchange, Inc. (PSE) will open Volume Weighted Average Price (VWAP) trading on Friday, March 1, 2024. This comes after the Securities and Exchange Commission approved PSE’s VWAP Trading Rules as well as the briefing of trading participants (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.
”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 3:00 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.
The complete VWAP Trading Rules may be downloaded from the PSE website, https://www.pse.com.ph.
