Table of Contents
Block Trade, a crucial element of the financial markets, refer to the buying and selling of securities in substantial single transactions. These trades, typically carried out by institutional or large investors, involve a multitude of stocks, bonds, or other financial instruments. Their staggering volume and value characterize them and are often conducted outside the open market to mitigate excessive impact on market prices. TEJ will guide you through this crucial aspect of the financial world.
Block Trade are required to be reported if they meet the following criteria, depending on the number of trades and the amount of money traded:
The Taiwan Stock Exchange (TSE) introduced the Block Trade system in 2005. It revised and adjusted the related functions in 2007, including increasing the number of matching trading methods, extending trading hours, and changing the unit of price increase and decrease as well as the price range of the trade report. These adjustments not only satisfy the market demand but also greatly enhance the willingness of market participants to use the system.
Summarize
A Matched Trade is a transaction agreed upon in advance between buyers and sellers that is reported and cleared through a broker or Exchange. Matched trades usually involve large amounts of capital and large quantities of securities to avoid excessive price impact when executed in the open market.
Taiwan Trading Hours
08: 00 – 08: 30 and 09: 00 -17: 00
Characteristics
Advantages and disadvantages of Matched Trade:
Advantages:
Disadvantages:
Summarize
Continuous Trading involves executing large trades in the open market piecemeal. Large orders are broken down into smaller parts and gradually executed in the market. This Strategy is designed to minimize the instantaneous impact on market prices while ensuring that trades are completed.
Taiwan Trading Hours
09: 00 – 17: 00
Characteristics
Advantages and disadvantages of Continuous Trading:
Advantages:
Disadvantages :
The impact on investors can be examined from several perspectives, including market volatility, investor psychology, liquidity market confidence, etc. The following are some of the significant impacts:
Block Trade can trigger short-term volatility in the market, particularly in less liquid markets where investors are uncertain about the reasons for and the context of the trades. This adds to market instability.
Block trades may trigger follow-on actions by other investors, especially when they are initiated by well-known investors or organizations. These actions may be easily interpreted as a sign of confidence in the market or a particular stock and affect investors’ sentiment and confidence. This follow-on effect may further aggravate market volatility.
Block Trade can affect short-term liquidity in the market. For example, many sell orders may make it difficult to match buyers, resulting in a decline in liquidity. In the long term, if Block Trade occurs frequently, it may affect the structural liquidity of the market and change investors’ trading strategies and behavior.
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Taiwan Stock Exchange (TWSE) & Over-the-Counter Trading Center (TPEx)
Special Circumstances
TEJ has organized all the information for you. Just log in to TEJ PRO and click on the Listed Block Trade in the TEJ Stock Price Database to get all the relevant information for that day. The database will be updated every day before 10:00 p.m. A period condition query is also at the top, making it more convenient to filter the Block Trade information you want!
For institutional investors and large capital managers. Block Trade allows buyers and sellers to transfer large quantities of securities at a negotiated price, thus accomplishing large-scale transactions without triggering sharp market fluctuations. Block Trade can be executed in two ways: matched trades and Continuous Trading, each with advantages and disadvantages.
In Taiwan, the disclosure of Block Trade is handled by the Taiwan Stock Exchange (TWSE) and the Over-the-Counter Exchange (TPEx), which ensure market transparency and fairness by publishing timely trading information through their official websites and trading platforms. Investors should fully understand the characteristics and requirements of each trading method and select the appropriate strategy according to the specific situation to achieve optimal trading results.
TEJ not only helps you to organize all kinds of high-quality information about Block Trade in history or on the same day but also provides backtests of various strategies to help you optimize your investment strategy, so you don’t have to spend time looking for comparative information everywhere and miss the perfect opportunity to invest. TEJ is your best choice for mastering financial data!
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