Block Trades
Block trading means trading where at least one party to
the trade is an Exchange member, concluding a trade on its
own account or for its client.
The object of the trade is a single issue of an investment
instrument. The trade is agreed at a price per 1 piece or
for the full volume of the trade, the number of items and
the settlement date. The price of a concluded trade is
neither limited in any way, nor is it dependent on the
price at the Exchange.
The agreed trade is then registered in the Exchange’s
automated trading system (AOS).
Block trades must satisfy a minimum volume
requirement, currently established as follows:
- CZK 1 for stocks
- CZK 10,000 for bonds
Block trades are settled with a deadline of T+0 to T+15
(where T is the registration date of block trades in the
Trading System). The Exchange Guarantee Fund guarantees do
not apply to block trading.
Registration of block trades must take place within the
established deadline:
|
Security type |
Registration of a block trade |
|
Shares |
till 5 minutes during the open phase of SPAD
trading
till 60 minutes during the closed phase of
SPAD trading |
|
Bonds |
till 120 minutes following conclusion of the
trade |
Information about these trades is published immediately
after registration in AOS through the data interface
(Exchange members, agencies) and the Exchange’s website
(public).
There are two types of block trading:
- block trades
- block trades with parties not registered as exchange
members
Block Trades
Both trading parties are Exchange members (they
conclude the trade on their own account or for their
client).
Each party enters its part of the trade, i.e. two orders
are entered into AOS – buy and sell. If the paired items
in the orders are the same, the orders are matched, and the
trade is considered to have been registered.
Immediately after registration, the trade is reported to
the Czech National Bank for both parties to the trade.
Block Trades by Exchange Members with Non-members
One trading party is an Exchange member (the
member enters instructions on its own account or for its
customer) and a non-member of the Exchange is the other
party in the trade.
The Exchange member registers an order for the trade
(from its own viewpoint), and as the opposite party it
states the non-member in question and a custodian that will
handle the trade for the non-member. The system immediately
generates an automatic counter-order with information
about the custodian of the non-member. The custodian
must provide appropriate data for the conclusion of the
trade. The trade is registered in the block trade database
in AOS and is published. Immediately after registration, the
trade is reported to the Czech National Bank for the
Exchange member. The non-member must have the trade reported
for itself.
Detailed information: