Block Trading Facility - BTF

AAA

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 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.

RELATED TERMS
  1. Multilateral Trading Facility - ...

    A trading system that facilitates the exchange of financial instruments ...
  2. Over-The-Counter - OTC

    A security traded in some context other than on a formal exchange ...
  3. Auction Market

    A market in which buyers enter competitive bids and sellers enter ...
  4. Trade

    A basic economic concept that involves multiple parties participating ...
  5. Block Trade

    An order or trade submitted for sale or purchase of a large quantity ...
  6. Discretionary Investment Management

    A form of investment management in which buy and sell decisions ...
Related Articles
  1. Fundamental Analysis

    Institutional Investors And Fundamentals: What's The Link?

    Big-money sponsorship might make a company look good, but it's not always a reliable gauge of stock quality.
  2. Investing Basics

    The Roles Of Traders And Investors In The Marketplace

    Discover how these two groups work together to keep the market functioning properly.
  3. Options & Futures

    Commodities That Move The Markets

    Find out how the everyday items you use can affect your investments.
  4. Options & Futures

    Keeping An Eye On The Activities Of Insiders And Institutions

    These transactions reveal much about a stock. We go over what to consider and where to find it.
  5. Brokers

    How Brokerage Fees Work

    What you need to know about fees when choosing between a full service and discount broker.
  6. Investing

    What is Asset Management?

    In the investment world, asset management refers to active management of an investor’s portfolio by a financial services company – usually an investment bank.
  7. Brokers

    OptionsXpress Vs. OptionsHouse: Which One To Pick?

    OptionsXpress and OptionsBroker -- each offers a price mix and set of services suitable for certain investors based on their trade approach and priorities.
  8. Professionals

    How to Choose a Robo-advisor? Follow the Money

    Which of the many robo-advisors will still be around in a decade? Here's an informal look at who might thrive and who might simply survive.
  9. Investing Basics

    Why Do Penny Stocks Fail?

    Penny stocks are speculative and highly risky investments. Lack of government and stock exchange oversight and general information leaves penny stock investors open to sudden losses.
  10. Brokers

    Do You Know How To Beat Your Broker?

    Want more returns? Give less of it to your broker! Keep your costs down, starting with broker costs.

You May Also Like

Hot Definitions
  1. Fixed Cost

    A cost that does not change with an increase or decrease in the amount of goods or services produced. Fixed costs are expenses ...
  2. Subsidy

    A benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction. The subsidy ...
  3. Sunk Cost

    A cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business ...
  4. Technical Skills

    1. The knowledge and abilities needed to accomplish mathematical, engineering, scientific or computer-related duties, as ...
  5. Prepaid Expense

    A type of asset that arises on a balance sheet as a result of business making payments for goods and services to be received ...
  6. Gordon Growth Model

    A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. ...
Trading Center