InvestorQ : What are block trades and what role does that play?
Angel dcosta made post

What are block trades and what role does that play?

Answer
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Swati Naik answered.
2 years ago


Following are the features of Block Trades
Trading will be conducted in the Odd Lot market (market type 'O') with Book Type 'OL' and series 'BL'.
Session Timings:
a) Morning Block Deal Window: This window shall operate between 08:45 AM to 09:00 AM.
b) Afternoon Block Deal Window: This window shall operate between 02:05 PM to 2:20 PM.
Reference price:
a) Morning Block Deal Window: The reference price for execution of block deals in this window shall be the previous day closing price of the stock.
b) The reference price for block deals in this window shall be the volume weighted average price (VWAP) of the trades executed in the security in the cash segment between 01:45 PM to 02:00 PM. In case no trades are executed in the security in the cash segment between 01:45 PM to 02:00 PM, the reference price shall be considered as follows-
VWAP based on trades executed in the security between 9:00 am to 1:45 pm shall be taken as the reference price. For the computation of VWAP, the trades of pre-open / special pre-open session as the case may be shall also be considered.
In case VWAP is not available as per above, then the previous day’s adjusted close price/base price shall be considered as the reference price.
The Exchange shall calculate and disseminate/ broadcast the applicable price range for the execution of the block deal between 02:00 PM to 02:05 PM on the trading terminal.
The minimum order size for execution of trades in the Block deal window shall be Rs.10 Crore. Orders will get matched when both the price and the quantity match for the buy and sell order. Orders with the same price and quantity will match on time priority i.e. orders which have come into the system before will get matched first. Market orders are not allowed for BL series. The orders placed shall be within ±1% of the applicable reference price in the respective windows as stated above.