How Does the ‘Reporting Threshold’ for Block Trades Affect Market Transparency?

Block trades are executed privately but must be reported to the exchange after a certain delay if they exceed a specific size threshold. This delay is intended to protect the executing parties from having their position immediately front-run, which would cause slippage.

However, this delay reduces market transparency, as the true size and price of the transaction are not immediately visible to the public, which can lead to temporary mispricing and volatility.