Market model

Market Maker

Market Maker displays bid and/or ask quotations (Quotes) regarding whatever security traded on Vorvel, for which an appropriate application for admission has been presented

Order Flow Provider

Order Flow Provider send orders from their customers (client orders) that participate in the composition of the trading book.

The orders may be placed during the start and end times of the Continuos Tranding Phase of the security trade in accordance with the following methods:

• limited price: equal or better than their limit price;
• market to limit: that is, executable at any price within the Market Maker’s best price;
• market order: it means executable at any price. Entering orders without price limit can only be done if there is at least one proposal (quote or order) of an opposite sign with a price limit.

Orders may specify the following methods of execution:

• Execute and cancel: the Order is executed, even partially, for the available quantities and at the indicated price or at the best price on the opposite side of the market if the Order is without price limit; any remaining balance is automatically cancelled;
• Good till cancel: the Order is executed, even partially, for the available quantities at the price specified ; any remaining balance is kept on the book until its complete execution, i.e. until the end of the trading hours of the session and/or until revoked by the Order Flow Provider. Any remaining balance of an Order placed without price limit remains on the book assuming the price of the last contract closed;
• Good till Date: the Order is executed, even partially, for the quantities available and at the price indicated; any remaining balance remains on the book until its complete fulfilment, i.e. for a period not exceeding the date indicated and/or until revocation by the Order Flow Provider.
• Good till hour: the order is executed, even partially, for the available quantities and at the price stated; any remaining quantity remains on the book until it has been executed fully, i.e. for a period not exceeding the time indicated within the same trading session and/or until revoked by the person who entered the order;
• Fill or kill: the Order is executed only for the entire quantity indicated at the time of placement at the price conditions specified; if this is not possible, the proposal is automatically cancelled.

Financial Instruments

• Shares

A share is the minimum unit of participation of a member in the share capital of a joint-stock company, limited partnership, or cooperative society.

• ETFs, ETCs/ETNs

ETFs are a specific type of investment fund or SICAV with two main characteristics: 1. it is traded on the stock exchange like a share; 2. its sole investment objective is to replicate the index to which it refers (benchmark) through entirely passive management, or not.

• Investment Funds

Mutual funds fall into the category of Undertakings for Collective Investment (UCIs) and are investment vehicles that perform the function of bringing together the financial resources of a plurality of savers into a single undifferentiated asset that is invested in financial assets. They are similar to SICAVs (joint-stock companies with variable capital) whose exclusive object is the investment of their assets, collected through the placement of their shares with the public.

Methods of trading and matching of trading proposals

The market model provides that the matching of trading proposals can take place, during the continuous trading phase, according to the following methods:

• matching third-party orders with third-party orders
• the combination of Orders/Shares on own account with Orders on behalf of third parties
• The combination of trading proposals on own account is inhibited by cancelling the new incoming proposal, while the one already on the book continues to be valid.

The market model is an "all to all" model, in which all trading proposals, whether they are odds or orders, are in competition with each other.

The matching takes place according to a mechanism defined as "PMT Priority", whereby the trading proposals on Vorvel Equities are matched on the basis of the following priority criteria:

1. Price;
2. Member (understood as a possible association with a Liquidity Provider operated by the Direct Member);
3. Time.

The PMT Priority therefore consists in the right for the Order Flow Provider to indicate a Priority Market Maker (Member), ensuring that, if any order placed by the Order Flow Provider can be combined with several trading proposals of the same price, the trading proposals entered by the chosen Market Maker are preferred in the first place.

This behavior occurs even if the Market Maker's proposals are entered with a lower time priority than the other proposals that can be combined.

When there are at least two different PDNs on the same price level, since the book is anonymous (a necessary measure for the orderly conduct of trades and the minimization of manipulative operations), it is not possible to know in advance which of these PDNs will be executed and/or executed first.

In all other cases of competition between several negotiation proposals, the matching model behaves on the basis of only 2 priority criteria: P (Best Price); T (Time to enter the proposal).

Detailed technical information for Market Participants (Market Participants and Info Providers)

The Vorvel Equities Segment has the "HMTF" code as its MIC Code, which is the same as that used by the Vorvel Bonds Segment, although the operations of the two Segments remain completely separate, also with regard to settlement methods.

Vorvel does not provide or support Payment for Order Flow (also known as PFOF) services

PFOF is defined as an arrangement whereby a broker receives a payment in exchange for sending the flow of orders to a specific execution partner. Vorvel's goal of reducing the cost of trading by applying zero execution fees to retail brokers does not constitute PFOF, as there is no payment for receiving the order flow. Vorvel is a multilateral Market, which operates in compliance with its Market Rules, fully compliant with MiFID rules, with a totally transparent and publicly available fee schedule.

For more information, please see the attachment below