Block trades boost stock market liquidity, reducing market shock impact.
Stock liquidity is important for evaluating the quality of the stock market. Block trade systems help manage large transactions and improve market liquidity. This article looks at how block trade systems have developed globally and in domestic markets. It then examines how domestic block trades affect market liquidity. The study finds that domestic and foreign block trade systems have different impacts on market liquidity. Suggestions are made to address issues in the system.