What are the requirements for block trade?

Block Trades are transactions involving a large quantity of assets that are executed outside of the regular trading process on exchanges. These trades often attract special regulations due to their significant impact on market dynamics.

Exchanges establish specific rules to govern Block Trades, ensuring fairness and transparency in the marketplace. These rules outline the general requirements that must be met for a trade to qualify as a Block Trade.

One of the key requirements for Block Trades is eligibility. Not all traders are permitted to engage in Block Trades, and exchanges may set criteria such as minimum trading volume or financial standing to determine eligibility.

Disclosure is also a critical aspect of Block Trades. Exchanges require participants to reveal certain information about the trade, such as the identities of the parties involved, the quantity of assets being traded, and the price at which the trade is executed. This information helps maintain transparency and prevents market manipulation.

Price and volume thresholds are also set for Block Trades. These thresholds determine the minimum size of the trade that qualifies as a Block Trade, as well as the price range within which the trade must be executed.