Syndicate
Special Security Negotiations
Negotiations of big packages of securities: usually this type of negotiations is generally done in a private way between two intermediaries by ways of a telephone. The contact between parts is through a mediator, which is contracted by one of the parts with the finality of finding a counterpart.
The mediator investigates by the way of the telephone between those intermediaries that think that have that amount or that are usually are active in the negotiation of those assets, to find out if any of them has the disposition to sell or buy the quantity of securities needed.
Having found the counterpart, the price is negotiated. If the price coincides with the actual closing price on the stock exchange market, the operation can go public as soon as possible. If not, the information can be given afterwards.
Negotiation of securities out of market hours: this type of market was born with the finality of preventing that certain transactions, with possibility of arbitrage, would deflect to other different markets that isn’t that of its own country due to the difference in times. For example, in the case of the New York stock market (NYSE) those functions at evening hours and others that at that time area closed, they could make negotiations between them.
These types of negotiations don’t accept any price or volume of securities, there exists certain marked limits on the different markets.