biz.yahoo.com
Friday July 9, 9:17 am Eastern Time
Company Press Release
Ashton Technology Plans Rollout of Volume Weighted
Average Price System On the Philadelphia Stock
Exchange
PHILADELPHIA--(BUSINESS WIRE)--July 9, 1999--The Ashton Technology Group (Nasdaq Small Cap:ASTN - news)
today announced plans to commence the rollout of its proprietary volume weighted average price (VWAP®) system on the
Philadelphia Stock Exchange (PHLX).
Ashton's VWAP®, approved by the Securities and Exchange Commission in March, is a unique pre-opening pricing and
execution system for the matching of large equity blocks at the volume weighted average price.
It allows institutional money managers and broker-dealers to execute the most active NYSE-listed securities at a precise
volume weighted price with the assurance of complete anonymity.
Within the Ashton VWAP® system, pre-opening trades will be matched and assigned Ashton's benchmark daily volume
weighted average price at the end of the day, computed from all trades that occur during the day and reported to the
consolidated tape.
Following a morning order entry period, executions will occur at 9:20 a.m., with the final VWAP® calculated and assigned at
4:20 p.m. each trading day.
The system prices each security and processes the transaction straight through to clearing and settlement, with no human
intervention and no market impact.
Ashton CEO Fredric Rittereiser said, ''While various pricing mechanisms based on volume weighted averaging already exist,
there is no uniform, objective, industry-wide standard. Our system, with its fully automated algorithms, operating as a facility of
a national exchange with the approval of the SEC, has the potential to become the standard for the volume weighted average
that investors need.''
Mr. Rittereiser emphasized, as a unique benefit, ''Ashton's VWAP® is the only system that combines the means to execute
anonymously at the precise benchmark price.''
In plans announced today, Ashton will begin the system's rollout in August on the PHLX with a group of institutional customers.
This controlled, live trading period, involving a limited number of securities, will serve to validate the features and benefits of
Ashton's proprietary electronic system. The system will be expanded in a phased approach to include larger institutions on a
global basis.
''Initial reaction to the system by major market players has been so encouraging that we would expect to reach critical mass
well before the end of the year. Meanwhile, we've been shipping and installing systems to customers who are already enrolled,
and we'll continue our efforts to integrate additional institutions, brokers, dealers and third-party vendors,'' Mr. Rittereiser said.
Ashton Technology Group is developing a family of on-line transaction systems using advanced telecommunication
technologies, computing technologies, together with data and information security technologies to facilitate global financial
transactions. Ashton's proprietary transaction systems are made available to end users through proprietary networks, third
parties, and the Internet.
The forgoing news release contains forward-looking statements based on current management expectations. A discussion of
other factors which may cause actual results to differ from current expectations can be found in Ashton's reports filed with the
SEC.
Contact:
Ashton Technology Group, Inc.
Investor Contact - Christine A. Geisser
Director of Corporate Relations
215/751-1900
Telefax: 215/636-3560
Website: www.ashtontechgroup.com
or
Siegel & Gale.
Press Contact - Fraser P. Seitel
201/784-8880
Telefax: 201/784-1446 |
