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How Do Exchanges Ensure the Transparency of Block Trade Execution Prices?

Exchanges ensure transparency by requiring that all block trades, despite being negotiated privately, must be reported to the exchange and publicly disseminated within a short time frame. They also enforce rules that the execution price must be within the range of the current market prices (best bid and offer) to prevent abusive pricing.

This ensures the market is aware of the large transaction, maintaining price integrity.

What Is the Impact of MiFID II on Derivatives Reporting in Europe?
Are There Regulatory Differences in Reporting Requirements for Trades Executed via Iceberg Orders versus in Dark Pools?
What Specific Regulations, like the Dodd-Frank Act, Were Introduced to Address Issues in the CDS Market?
What Is the Relationship between Network Jitter and the Slippage Experienced in Trade Execution?