ASX Block Trades
ASX Block Trades are large trades of securities that are carried out outside the regular ASX trading system. These trades are typically between institutional investors and involve blocks of at least $1,000,000 worth of shares. Block trades may source liquidity from a large number of buyers or sellers on the open market, or matched between two individual parties privately in an off-market trade. The details of these transactions must then be reported back to the ASX within five minutes after completion, so all other market participants have access to relevant information related to such trades.
Monitoring block trades in real-time is advantageous as it can provide investors with an indication of the liquidity and direction of the market. This information is especially useful for institutional investors, who are often looking to buy or sell large blocks of securities on a regular basis. By monitoring block trades in real-time, these investors have access to up-to-date pricing information about any given security that they may be interested in trading. Furthermore, by understanding current trends related to block trades, investors gain insight into which stocks are currently being traded most actively among institutions.
Overall, ASX block trades provide investors with access to up-to-date pricing information and market insights that are critical for making informed investment decisions. By monitoring these trades in real-time, investors gain valuable insight into the current trends related to any given security on the market.
This should be differentiated between large orders in the market-depth.
Market depth is the number of buy and sell orders for a given security at different price levels. Large orders in market depth are when large numbers of shares are available to be bought or sold at a certain price level. This information can provide investors with insight into which stocks may become more volatile or liquid, as well as how prices could potentially move in the future due to an influx of buyers or sellers.
In comparison, ASX block trades provide information on the execution of the these orders.
Large orders are not always filled and can be used to spoof the market. ASX block trades provide information about large orders that have actually been filled and executed, which can be more useful for investors to track in order to understand the liquidity of a security or asset class.
Overall, both market depth and ASX block trades are important sources of data for investors looking to make informed decisions when trading securities on the ASX.
Exchange Speed provides a first in class service for receiving instant notification of a block trade occurring on a company that you are subscribed to.
