What is negotiated block trading?
Institutional investors can use our virtual trading pit to chat with other participants and directly negotiate large blocks. Propose a price and size, and execute the trade on our exchange. All negotiated trades are centrally cleared through the LedgerX clearinghouse giving investors execution certainty vs. dealing with 3rd party counterparty risk.
Negotiated Trades (Institutional Accounts Only)
A Negotiated Trades order is an order that is permitted to be pre-negotiated between two counterparties.
Negotiated Trades contacts can be managed on the Web Trading Interface ("WTI") under My Account. A Participant may add another LedgerX Participant as an SCP contact by entering their LedgerX-registered email address. A Participant may also remove any contact from their list of contacts.
The LedgerX Sales team can facilitate introductions among Participants for purposes of adding SCP contacts.
How it Works
A negotiated trade may be completed over instant message on the Web Trading Interface. A Participant may initiate a conversation with any contact by logging into the Web Trading Interface, selecting that contact in the Contacts menu, and pressing Enter Order.
The two Participants bilaterally negotiate the terms of the trade, including price and size. Once the terms are agreed, the Participant who initiated the negotiation will be prompted to enter in the details of the trade negotiation. The counterparty will then be prompted to confirm the agreed-upon details, and the trade is submitted to the matching engine.
How to see Negotiated Trades
Negotiated trades are broadcast through the API and displayed on the WTI trade blotter in the same way as any other limit order trade, with the order type indicating that the trade was negotiated.