Block trading in fractional ticks, the future for Best Execution!
On the 14th September 2017 a mid priced block was created in the Dec 19 Short Sterling contract, a first!
The ability to execute a Block at a fractional price provides real value for the market in a world of MiFID II and Best Execution. Fractional Blocks allows participants the freedom to create any price, provided all legs meet the minimum block thresholds.
Fractional Blocks complement the CurveGlobal offering of competitive fees and portfolio margining (LCH Swapclear).
On screen at-the-touch liquidity is available in large size, but as we can see with today’s execution, additional off-screen liquidity inside the quote also exists.
Approaching the 3rd January 2018 MiFID II implementation deadline if you’re not connected to CurveGlobal - are you getting the best price?
How it happened
The block of Dec 19 short sterling at a synthetic average was achieved by splitting the execution across a number of shapes at 99.15 and 99.16 to create a fractional-price block. This is fully compliant with the LSEDM exchange rules.
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