How Do Institutional RFQ Platforms Handle Custody of Assets during a Trade?

RFQ platforms typically do not hold custody of assets themselves. They are a communication and negotiation layer facilitating price discovery.

The trade execution and settlement often occur bilaterally between the requesting institution and the liquidity provider. Custody remains with the respective parties' prime brokers or custodians until settlement is complete.

This model minimizes the RFQ platform's counterparty risk exposure.