Sure, here's an example of cross trading on the ASX:Let's say a...

Originally posted by ryan1000000

Sure, here's an example of cross trading on the ASX:Let's say a large institutional investor wants to buy a significant amount of shares in Company ABC. They approach their brokerage firm, which also represents several other clients who are willing to sell shares in Company ABC.Instead of placing a traditional order on the exchange, which could potentially impact the market price due to the large volume of shares being bought, the brokerage firm facilitates a cross trade. They match the buy order from their institutional client with sell orders from their other clients who are willing to sell shares in Company ABC.By executing the trade internally within the brokerage firm, they can potentially get a better price for their client without causing significant market disruption. However, it's important for the brokerage firm to ensure that the cross trade is conducted fairly and transparently, following regulatory guidelines.