May 4, 2020
•
...
An RFQ (Request For Quote) is an electronic notification sent to a counterparty of choice (Maker) requesting a price quote for a specific options or futures strategy.
An RFQ can be a multi-legged spread or a single instrument type and can be configured for the following fields:
-
Clearing Venue
-
Product and Instrument Type
-
Strategy
-
Account or Sub-Account
All RFQs are sent as two-way pricing requests implying that the Taker has no obligation to show any preference as a Buyer or Seller
The receiver (Maker) is alerted within the communication channel (Trade Channel) to submit a Bid and an Offer for the requested strategy
These Bids and Offers are active and tradable. The Taker can then choose to Buy, Sell or continue to monitor the market (Do Nothing).
What are the benefits of RFQ block trading via Paradigm?
On-demand liquidity for large size orders, especially when screen markets thin out
More competitive pricing for multi-leg spread structures
Single execution for multi-leg spreads and combo trades, including delta neutral structures with Futures and Options.
-
This eliminates any execution risk associated with manual entry of each leg (i.e. market movement, counterparty representation, and on-screen front-running.)
Positions and prices automatically settle in your clearing accounts, so don’t have to worry about time lag
Heading 1
Heading 2
Heading 3
Heading 4
Heading 5
Heading 6
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur.
Block quote
Ordered list
- Item 1
- Item 2
- Item 3
Unordered list
- Item A
- Item B
- Item C
Bold text
Emphasis
Superscript
Subscript
