Block trades

Block trades are those concluded outside of the continuous and single-price auction systems. The subject of this type of transaction can be large blocks of instruments traded on the Exchange. Most often, these transactions are between major players who have previously agreed upon the details of the transaction-i.e. the price, amount, and settlement date.

Block trades for financial instruments other than derivatives:

A block trade may be carried out during a session if the subject of the transaction is a block worth at least:

• 250 thous. zloty in the case of stocks included in the WIG20,
• 100 thous. zloty in the case of the remaining instuments traded in the continuous system,
• 20 thous. zloty in the case of other stocks, securities, and financial instruments.

and the maximum difference between the transaction price and the last price of the security during the session is no greater than 10%.

Block trades concluded outside trading hours may also be executed if the difference in the transaction price is up to 40% of the volume weighted average price (VWAP) from the trading session.

In justified cases, the Exchange Management Board may agree to a transaction which does not comply with the minimum value and price variation conditions, if it encompasses at least 5% of the security introduced into trading on the Exchange.

Block trades for derivatives:

• Trades are executed between 9:00 - 17:50 for all derivatives.
• Price variation limits are the same as for continuous trading for each type of derivatives.
• The number of derivative instruments to be traded in one block trade (trade volume) may not be lower than the 200.  
• Settlement date has to be at the day of trade (T+0).
• Settlement data as for continuous trading for each type of derivatives.
• After each block trade is executed, number of open positions is published.
• The security deposits for block trades are the same as for trades executed in continuous trading.
• Block trades can be executed after firs trade on each derivative contract is executed in continuous trading.