Block Trading Facility - BTF

Filed Under:
Dictionary Says

Definition of 'Block Trading Facility - BTF'


A wholesale trading facility that allows traders to buy or sell large numbers of securities bilaterally outside of the public market. Because trades conducted in a block trading facility are typically between two parties, prices are set with certainty and execution is done without delay. Institutional investors use block trading facilities for transactions involving large numbers of shares.
Investopedia Says

Investopedia explains 'Block Trading Facility - BTF'


When shares are traded in a block trading facility they are transacted in large lots. The size of the lots can vary, but traders are generally not permitted to aggregate multiple, separate orders in an effort to meet minimum volume requirements. Securities traded though a block trading facility are not subject to market fluctuations because they are not publicly visible, making this sort of trade more like a private contract between two parties.
comments powered by Disqus
Hot Definitions
  1. Legal Monopoly

    A company that is operating as a monopoly under a government mandate. A legal monopoly offers a specific product or service at a regulated price and can either be independently run and government regulated, or government run and regulated.
  2. Closed-End Fund

    A closed-end fund is a publicly traded investment company that raises a fixed amount of capital through an initial public offering (IPO). The fund is then structured, listed and traded like a stock on a stock exchange.
  3. Payday Loan

    A type of short-term borrowing where an individual borrows a small amount at a very high rate of interest. The borrower typically writes a post-dated personal check in the amount they wish to borrow plus a fee in exchange for cash.
  4. Securitization

    The process through which an issuer creates a financial instrument by combining other financial assets and then marketing different tiers of the repackaged instruments to investors.
  5. Economic Forecasting

    The process of attempting to predict the future condition of the economy. This involves the use of statistical models utilizing variables sometimes called indicators.
  6. Chicago Mercantile Exchange - CME

    The world's second-largest exchange for futures and options on futures and the largest in the U.S. Trading involves mostly futures on interest rates, currency, equities, stock indices and agricultural products.
Trading Center