Single Weighted Average Price
As per the feedback received from market participants, post implementation of Interoperability, the requirement of showing weightage average price of each of Exchange in ECN, needs review and instead it should be a single weightage average price (WAP) for transactions for a particular security/common contract irrespective of Exchange where the trade is executed
image for illustrative purpose
Mumbai, May 16: As per the feedback received from market participants, post implementation of Interoperability, the requirement of showing weightage average price of each of Exchange in ECN, needs review and instead it should be a single weightage average price (WAP) for transactions for a particular security/common contract irrespective of Exchange where the trade is executed.
In view of the above and to address the concerns raised by market participants it was decided that stock brokers shall issue ECN with single WAP for trades done across Exchanges per security/common contract for the total traded quantity per settlement.
With removal of Exchange identification, broker can provide single WAP in the consolidated ECN across Exchanges per security/common contract to their clients.
Talking to Bizz Buzz, Alok Churiwala, MD, Churiwala Securities, says, “This just makes life a tad bit simpler for the investor, who now instead of accounting for multiple trades for the same scrip across exchanges will now get one consolidated trade. Another step towards being investor friendlier.”
