VBBO (Volume weighted Best Bid and Offer)
VBBO – the pan-European benchmark
For each liquid instrument covered by the VBBO, our innovative system calculates the Volume weighted Best Bid and Offer for both the Standard Market Size (SMS) and the Retail Market Size (RMS). The VBBO is the same price you would attain were you to make the ideal partial executions in all of the reference markets.
A price you can effectively trade on
Equiduct's VBBO is the true best price, mathematically derived. It provides a benchmark against which other execution venues can be compared. The fact that it is now possible to trade applying the VBBO best price principles in PartnerEx differentiates VBBO from other benchmarks produced by data vendors.
How it works
For trading purposes the VBBO is calculated for the precise requested size. If, for example, an Order Flow Provider sends an order of 10,000 € in the PartnerEX segment, then the VBBO for that very size is calculated at the exact time of the order and execution will take place at exactly that price.
VBBO inclusion criteria
The VBBO covers the most liquid stocks traded in Europe including all major index stocks. For an overview of the inclusion criteria and list of instruments traded, please visit the Instruments Traded page.
