For today we decided to bring you an overview of how much value is traded through equity block transactions as opposed to regular market transactions on the Croatian market.
A block trade basically means a transaction between two parties, which involves the sale or purchase of a large number of securities. Such a transaction usually involves a significantly larger number of equities or bonds being traded at an arranged price between two parties, sometimes outside the open markets. On the ZSE, the minimum amount for a block transaction is HRK 2m. These transactions represent an important way of trading on a less liquid market, as they are used to lessen the impact that a large transaction has on a price of certain security. Because of this, we decided to bring you an overview of how much value is traded through equity block transactions as opposed to regular market transactions on the Croatian market.
Equity Turnover Breakdown (HRK m)
When looking at the charts provided above, it is noticeable that the share of the block transactions has been gradually increasing over the years, as the liquidity of the market has decreased with 2016 being the year when the block transactions had the largest share. With 2021 continuing its strong trend of block trade transactions, it could surpass 2018, when block trades had the 2nd largest share after 2016.
Block Transactions as % of Total Turnover