block trade

block trade
A large trading order, defined on the New York Stock Exchange as an order that consists of 10,000 shares of a given stock or at a total market value of $200,000 or more. Bloomberg Financial Dictionary
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A privately negotiated futures transaction executed apart from public auction market, either on or off the exchange trading floor. There are minimum order size requirements that vary according to product and order type, and eligibility for engaging in such trades is strictly regulated. Block Trades can only be negotiated with futures, options on futures, and CBOT swap trades (excludes all other basis trades). Chicago Mercantile Exchange Glossary
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Defined as 75 W the normal market size ( NMS). Where a trade of this size is completed, it must be reported into SEAQ under the usual deadlines. However, whereas most trades are then displayed on the screen to give information to investors, display of these larger trades is usually delayed for five business days. This gives the market maker who has done the trade the opportunity to cover his position in the stock. Dresdner Kleinwort Wasserstein financial glossary
See also maximum publication level and Securities. Generally, the phrase block trade can mean a trade which is larger than the normal size of a trade for the particular stock. Block trading refers to the trading of large parts of a portfolio and is often referred to as upstairs trading in the USA. Dresdner Kleinwort Wasserstein financial glossary
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The purchase or sale of stock in a large quantity, normally 10,000 shares or more. Exchange Handbook Glossary
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The transaction was reported using the block trade facility, which is at least 75 times the NMS for a security with an NMS of 2,000 shares OR above 50 times the NMS for a security with an NMS of 1,000 shares. London Stock Exchange Glossary

Financial and business terms. 2012.

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Look at other dictionaries:

  • Block trade — In finance, a block trade is a trade that is usually at least 10,000 shares of a stock or $200,000 of bonds. It can also refer specifically to large trades that occur between institutional parties at a fixed price. For instance, an insurance… …   Wikipedia

  • Block Trade — An order/trade submitted for sale or purchase of a large quantity of securities. Also known as Block Order. In general, 10,000 shares of stock (not including penny stocks) or $200,000 worth of bonds would be considered a block trade …   Investment dictionary

  • block trade — block trader. the purchase and sale of blocks of securities through brokers, sometimes not members of an exchange, who negotiate between buyers and sellers. * * * …   Universalium

  • block trade — block trader. the purchase and sale of blocks of securities through brokers, sometimes not members of an exchange, who negotiate between buyers and sellers …   Useful english dictionary

  • Block trade — A large trading order, defined on the New York Stock Exchange as an order that consists of 10,000 shares of a given stock or a total market value of $200,000 or more. The New York Times Financial Glossary …   Financial and business terms

  • block — Large quantity of stock or large dollar amount of bonds held or traded. As a rule of thumb, 10,000 shares or more of stock and $200,000 or more worth of bonds would be described as a block. Bloomberg Financial Dictionary A large amount of shares …   Financial and business terms

  • Block House — A brokerage firm with the primary focus of locating potential buyers and sellers of large trades. A block house typically deals with institutional clients rather than individual investors, since each transaction represents millions of dollars.… …   Investment dictionary

  • Block Order — A signficant order placed for sale or purchase of a large number of securities. Block orders are often used by institutional investors. Also known as a Block Trade . Typically, a 10,000 share order (excluding penny stocks) or $200,000 worth of… …   Investment dictionary

  • Trade me out — Work out of one s long position (usually created by committing firm principal to complete a trade block trade) by selling stock. Antithesis of buy them back …   Financial and business terms

  • Trade me out — Work out of one s long position (usually created by committing firm principal to complete a trade block trade) by selling stock. Antithesis of buy them back …   Financial and business terms

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