Block Trading engine

Block trades are large trades with a fixed price that are privately negotiated between two parties. 2 counter-parties can negotiate and agree on a fixed price for a given transaction which is then submitted to Syndr for execution, clearing, and settlement. Block trades on Syndr must exceed certain minimum quantity thresholds.

Benefits of Block-trading

• Reduced Slippage - Insufficient liquidity makes it risky for traders to place large-size orders directly on the orderbook. Block trades present a convenient alternative that can guarantee execution at the required target price without orderbook slippage risks.
• Minimized market impact - Large-size orders can have an outsized impact on the market price of an instrument. As block trades are negotiated privately away from the orderbook at a fixed price, their impact on the market is minimized.

How does Block trading work on Syndr?

1. 2 parties - Party 1 and Party 2 negotiate and agree on details for a given trade, with Party 1 as the maker and Party 2 as the taker.
2. Party 1 creates a signed block-trade message with all the relevant details, including price, size, instrument, etc.
3. Party 1 shares this with Party 2
4. Party 2 reviews the trade details and countersigns this shared message
5. This message, signed by both parties, is shared with Syndr for execution, clearing, and settlement.
6. Settlements and Risk management for block trades work the same way like orderbook trades

Direct

Traders on Syndr can execute block trades directly via Syndr using the interface or via the API. Syndr will also launch a telegram RFQ group allowing traders to request and reply to quotes for block trades on Syndr.

3rd Party platforms and groups

Syndr Block trading solutions can be integrated with external 3rd party platforms and institutional liquidity networks. We are interested in platforms that allow a dedicated suite of institutional trading tools like automated RFQs, option & futures analytics, audit trails, directories of potential counterparties with selective KYC/AML, compliance providers, etc. To talk to us about such integrations, you can reach out to us at [email protected]