Can Front-Running Occur on a Request for Quote (RFQ) Options Platform?
Yes, front-running can occur on an RFQ platform, though the mechanism differs from an order book. A market maker who receives a client's RFQ (which is non-public information) could potentially use that knowledge to trade the underlying asset or other options before quoting the client, anticipating the market impact of the client's eventual trade.
However, reputable RFQ platforms have strict rules and surveillance to prevent this informational abuse by market makers.