This mentions a few of the different type of VWAP products that will be available.
Universal Trading Technologies Corporation (UTTC™ )
UTTC™ designs, develops and operates systems to enable on-line transactions which
can be made available to end users, on a secure basis, through various public and
private communications networks. On April 8, 1997, UTTC™ completed the
Universal Trading System ("UTS™") and its first product module, the VWAP®
Trading System ("VTS™").
The UTS™ provides institutional investors and financial intermediaries with an
electronic pathway for the execution of block trades together with high grade
information security to guarantee anonymity for its users. The system provides end to
end data security within a neutral electronic environment. The UTS™ system is
designed to use computer and telecommunications technologies to enable users to
receive system information, and to enter and execute orders either on-line or through
the Internet. The system is available to exchanges, broker-dealers, NASDAQ
participants and financial intermediaries.
The UTS™'s first product module, the VTS™, is an electronic securities pricing and
transaction system for trading exchange-listed and NASDAQ National Market quoted
securities. All VTS™ system trades will be executed at the Volume Weighted Average
Price ("VWAP®"), the average price for a specific stock weighted by the volume of
shares of such stock traded "regular way" during the day on all securities exchanges
throughout the United States as reported to the Consolidated Tape. VWAP® has been
recommended by some industry experts as a means for providing best trade execution
at the lowest possible cost. Management believes that a VWAP® trade execution is in
increasing demand by money managers.
The full family of VWAP® based products will include: Opening hour VWAP®,
Closing hour VWAP®, "Witching Hour" VWAP® (pricing on option related securities,
e.g., a three-day pre "witching hour" VWAP®), VWAP® Indices, and VWAP® as a
security. The VTS™ product module will be followed by other products such as an
Electronic Auction System (eAS™), an Electronic Public Limit Order Book
(ePLOB™), and an Electronic Options Trading System (eOX™).
Management believes that trades related to institutional securities transactions account
for approximately half of all securities traded in the U.S. domestic market and that
computerized pricing and execution systems have become an increasingly important
form of trading for institutional investors. The Company anticipates that this trend will
result in a high demand for the UTS™ system.
UTTC™ is a party to a five year contract with the PHLX which defines a business
relationship that includes the PHLX's employment of the VTS™ system on the
exchange floor as a new trading product of the PHLX. Based upon the new ATS
Regulations adopted by the Securities and Exchange Commission on December 2,
1998, management anticipates that the VTS™ can commence commercial operation on
the PHLX in early July of 1999.
Other avenues for launching the VTS™ system and other products include UTTC™'s
recently formed broker-dealer subsidiary which could offer UTTC™'s products
directly.
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