block Order executed far below current bid

Discussion in 'Order Execution' started by trade-stocks, May 27, 2010.

  1. Hi guys,

    Yesterday I was just watching Time and Sales window of BAC and the current quote for Bid was 15.79 and ask was 15.80 but on the Time and sales window at the same particular time I saw a block trade of 75000 shares at the price 15.49 (Irregular Trade) executed. What does that mean?

    Can trade can be executed much lower then the current bid and ask? Was that an accumulation or distribution of the block shares traded?

    Reply is appreciated!!:confused:
  2. pr66067


    Was this the 74,574 share report at 11:13:54 eastern?

    It was reported through the NASDAQ TRF (meaning off exchange -- either broker internalized, dark pool or ECN).

    It was marked as follows:
    1) trade through exempt
    2) derivitvely priced (sale condition 4)
    3) Average price trade (sale condition B)

    It was also marked with the "A" (None) consolidated High/Low/Last indicator, meaning that the trade was not eligible to set the official high, low or last
  3. CET


    A block of that size can be executed away from the current bid/ask, and it could be a dark pool transaction that the real big players use. Many of these late posting trades are orders that the specialist had from someone and the specialist had to accumulate the shares over a period of time. The block trades usually gets processed later, and that is when you see what your saw. If a trade goes through outside the bid/ask don't worry about it.
  4. Yes, it was 74,574 at 11:13 am. Thanks a bunch guys for the reply and clearing my doubts.

    Really appreciate it.

    Thanks again