Minimum thresholds are set for the BTF to:
- Protect the existing ASX 24 market by encouraging all but genuine “large” orders to be transacted in the central market; and
- Define in advance which orders are considered of sufficient size to potentially qualify as a Block Trade.
Minimum thresholds are determined by ASX investigation plus consultation with participants and other market users as applicable to each contract. Minimum volume thresholds will be set on an individual contract basis and monitored with a view to maintaining a desirable balance between block trade business and that executed through ASX’s New Trading Platform (NTP) for any given contract.
Participants may not aggregate separate orders to meet threshold requirements. However, participants may aggregate any orders individually greater than or equal to the minimum threshold for that contract. For example, if the minimum threshold is 300 lots, a buy order of 1200 lots may be satisfied on the sell side by four 300 lot orders.
A client (such as a fund manager) may place a block trade order with a participant that amalgamates volume from more than one account to achieve the applicable minimum volume threshold.