Trading Model

Equiduct is a lit, pre and post-trade transparent pan-European regulated market. Equiduct’s unique trading model has been designed to allow our members to access liquidity from the Primary and Secondary markets in Europe using a single exchange connection. We combine our vanilla Central Limit Order Book with our Retail (Apex) and Institutional (SpotVBBO) Best Execution products, to deliver an all in one trading solution for both retail brokers and institutional clients.

How Equiduct Works

Equiduct determines the best price by calculating the Volume Weighted Best Bid and Offer (VBBO) in real time using the liquidity available in Europe’s major lit trading venues as well as our own Central Limit Order Book. Using Equiduct’s price discovery mechanism ensures that our members always receive either a better or equal price to the Primary Market.

 

This proprietary calculation allows our members to access Europe wide, multilateral liquidity see across multiple venues. Orders can achieve Best Execution on Equiduct as the VBBO calculation will always use the best prices available throughout Europe.

 

Central Limit Order Book

Equiduct’s lit Central Limit Order Book is a CLOB with a difference, offering:

  • Continuous trading with opening and closing sessions.
  • The merging of retail and institutional flow by the inclusion of retail limit orders.
  • Pan-European stock coverage offering trading in the most liquid equities and ETFs.

 

Equiduct’s Trading Universe

Due to Equiduct’s unique trading model, for an instrument to be included in our trading universe there are certain criteria that need to be met, such as sufficient fragmentation and liquidity.

 

The following criteria for admission to trading are:

 

1.  Has to be admitted to trading on at least one regulated market in the EU, including:

  • Deutsche Boerse - Xetra
  • London Stock Exchange
  • Euronext (Belgium, France, Netherlands, Portugal)
  • Borsa Italiana
  • NASDAQ Nordic
  • Bolsa de Madrid

 

2. In addition to trading on a regulated market the instrument must also be listed on at least one secondary market:

  • Cboe CXE
  • Cboe BXE
  • Turquoise

 

3. Must be an index constituent or have significant fragmentation

 

4. The instrument must be accepted for clearing by one of the following Clearing Houses:

  • LCH LTD
  • LCH SA
  • EuroCCP
  • SIX x-clear

 

Full details are available in the Market Model which can be found in the Document Library.