How Do RFQ Platforms Prevent Information Leakage about the Trade Size? ⎊ Path

How Do RFQ Platforms Prevent Information Leakage about the Trade Size?

RFQ platforms prevent leakage by only revealing the request to a select group of Liquidity Providers (LPs) and keeping the process confidential. Crucially, the platform often only reveals the side (buy/sell) and size to the LPs who are quoting, but this information is not broadcast to the public market or other participants.

The quotes received are private to the initiator.

What Is the Benefit of Multi-Dealer RFQ for the Trade Initiator?

How Does the Number of Dealers Quoted Affect the Trade Initiator’s Execution Quality?

What Is a Request for Quote (RFQ) System and How Does It Inherently Mitigate Front-Running?

How Does the Concept of a Request for Quote (RFQ) System Relate to Dark Pools in Traditional Finance?

What Is ‘Information Leakage’ in the Context of a Public Order Book?

How Do ‘Indicative Quotes’ Differ from ‘Firm Quotes’ in an RFQ System?

What Is a ‘Dark Pool’ and How Does It Mitigate Information Leakage for Block Trades?

What Are the Main Differences between the Original GetWork Protocol and the Stratum Protocol?

Glossar

Rfq Platforms

Execution ⎊ Rfq platforms, within cryptocurrency derivatives and options trading, facilitate block trades and customized contract specifications outside of centralized exchange order books, offering direct negotiation between counterparties.

Information Leakage

Concept ⎊ Information leakage refers to the unintentional or unauthorized disclosure of sensitive trading information that can be exploited by other market participants.