@article {Berkeley40, author = {Alfred R. Berkeley III}, title = {The Paradigm Shift in Equity Block Trading}, volume = {2007}, number = {2}, pages = {40--44}, year = {2007}, publisher = {Institutional Investor Journals Umbrella}, abstract = {We are in a paradigm shift in equity trading in the United States. At the highest level, relative power is shifting from intermediaries to end users. Buy-side traders who used to routinely give large orders to brokers are increasingly retaining control of their orders. They are investing in tools and knowledge, and demanding control. The paradigm shift that is underway in equity block trading is picking up speed. The block trader{\textquoteright}s needs are well understood. The market for blocks is fundamentally different from the market for small orders. The traditional exchanges and the ECN{\textquoteright}s were not designed to serve block traders. To succeed, block traders need a trading venue that offers invisibility for orders, which leads to large fills, high fill rates and virtually no market impact. Invisibility is the new factor driving the paradigm shift that people feel and struggle to understand.}, URL = {https://guides.pm-research.com/content/2007/2/40}, eprint = {https://guides.pm-research.com/content/2007/2/40.full.pdf}, journal = {Trading} }