The debate about block trading in the US was rekindled last week. Exchange executives and market participants aired their views on the subject following the publication of a report by three Commodity Futures Trading Commission (CFTC) economists. The report, which studied block trades in FTSE 100 futures traded on Euronext Liffe, did not support the view that block trading fragments markets or impairs price discovery.
The report concluded, "Our findings, although preliminary? are generally consistent with arguments advanced by proponents of block trading".
Liffe's deputy ceo, John Foyle, welcomed the findings and stated that they mirrored the exchange's own market data. He...