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Cboe Trajectory Cross Grows in UK
- Cboe BIDS VWAP-X, a trading mechanism, has launched in the UK with a record day in March, facing regulatory challenges in the EU.
- The trajectory crossing service for UK and Swiss securities saw a daily traded value of €6.1m on March 3, 2025.
- Initial focus was on establishing a mix of early adopters, with average daily traded value increasing over months.
- BMO Capital Markets has been an early adopter of Cboe BIDS VWAP-X, emphasizing its benefits in matching trades.
- Trajectory crosses aim to minimize slippage and provide high-quality execution, especially in volatile markets.
- European regulatory challenges for trajectory crossing in the EU due to ESMA's proposed changes to RTS 1 pose obstacles.
- Cboe aims to offer trajectory crossing in the EU but faces opposition due to regulatory restrictions favoring brokers over exchanges.
- Clients like the trajectory crossing experience in the US and see its potential benefits in the UK.
- Norges Bank Investment Management expressed concerns about ESMA's amendment affecting equity transactions in Europe.
- ESMA's decision may limit competition, innovation, and market development in European capital markets, impacting investors.
- The proposal by ESMA could hinder access to market enhancements and disadvantage European venues in international competition.
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