Bank of America Corp. rolled out revised block‑trade guidelines this month, a move that follows scrutiny of a high‑profile transaction involving the hedge fund‑linked Esprit deal. The new rules tighten eligibility criteria and reporting obligations for large, off‑exchange trades, aiming to curb opacity that regulators have flagged in recent years.

The Esprit transaction, now a centerpiece of a criminal trial, exposed how sizable block trades can be used to conceal price‑impact and bypass standard market safeguards. By tightening its internal controls, BofA seeks to reduce legal exposure and reassure investors that its execution desks operate within a more transparent framework. The bank’s compliance teams have been instructed to flag any trade that mirrors the Esprit structure for immediate review.

Market participants have reacted cautiously, noting that stricter guidelines could slow the speed of large‑volume executions but may also lower the risk of regulatory penalties. Traders accustomed to the previous, more permissive regime must adapt to additional documentation steps, potentially reshaping how institutional investors allocate capital across block‑trade venues.

Overall, the policy shift underscores BofA’s effort to align its trading practices with heightened regulatory expectations while preserving its role as a major liquidity provider. The bank’s proactive stance may set a benchmark for other institutions facing similar scrutiny.