Institutions use block trades to manage large positions efficiently and discreetly. Executing such transactions privately helps reduce market impact, maintain confidentiality, and achieve more stable pricing than would be possible on a public exchange.

Block trades are closely regulated by authorities such as FINRA, the SEC, CME Group and ESMA. Regulations generally require post-trade reporting within defined time limits, adherence to minimum trade sizes, and robust monitoring systems to prevent market abuse and manipulation or misuse of information.

Retail traders usually receive post-trade data once transactions are published. While they don’t participate directly in block trading venues, this information can provide insight into institutional activity and overall market tone. Some price adjustments may follow disclosure, as the market absorbs the new data.