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Block Orders

Definition​

Block Order is a term similar to a standard trade order, but with a distinct purpose and business flow, particularly applicable to businesses involved in managing their customers' finances, such as in Wealth Management or Fund Management.

To define the concept of Block Order, let's consider an example:

  • Some customers express interest in technology stocks and wish to heavily invest in them.
  • For customer A, the instruction is to BUY 100 EURO of Xyz Stock on 2023-07-12 at 13:00.
  • For customer B, the instruction is to BUY 200 EURO of Xyz Stock on 2023-07-12 at 13:00.
  • For customer C, the instruction is to BUY 300 EURO of Xyz Stock on 2023-07-12 at 13:00.

Rather than sending each of these individual orders separately to the trade provider (market provider) via OMS API, the goal is:

  • Aggregate/Group all three orders, summing their quantities or amounts into a single aggregated order.
  • Send this consolidated order as one to the trade provider (market provider).
  • Upon the fulfillment of this aggregated order, perform the distribution/booking of money and positions into the respective customers' accounts.

This is where the Block Order concept proves beneficial for such scenarios.

Note: Block Order trading is specifically supported in OMS API and not in FIX API.

SINGLE Block Order (CHILD Block Order)​

SINGLE Block Order (CHILD Block Order) refers to orders placed on OMS API that will not be sent directly to the trade provider (market provider). Instead, they become children of a parent order, which is an aggregated order.

When making similar orders for different customers to create a Block Order, these orders should be sent as SINGLE Block Order (CHILD Block Order) to OMS API.

PARENT Block Order​

PARENT Block Order, or simply Block Order, is an aggregation of orders marked as SINGLE Block Order (CHILD Block Order).

NOTE

  • OMS API does not transmit these individual SINGLE Block Order (CHILD Block Order) to the trade provider (market).
  • OMS API aggregates them based on the grouping properties of the SINGLE Block Order (CHILD Block Order).

Aggregation of CHILD Block Orders​

Aggregation (grouping into a Block) is conducted based on similarities in:

  • Trade Provider (market provider, Stock exchange)
  • Cut-off Date (YYYY-MM-DD)
  • Cut-off Time (HH:mm)
  • ISIN Code (financial instrument)
  • Order Side (BUY/SELL)
  • Currency