How Does an RFQ Model Affect the Transparency of Price Discovery Compared to a CLOB?

RFQ provides less pre-trade transparency than a CLOB because quotes are only visible to the requesting party and the solicited liquidity providers. The process is inherently private.

A CLOB, however, displays the full depth of the order book to all participants, offering high pre-trade transparency. Post-trade transparency, reporting the executed price, is generally similar, but the RFQ process itself is opaque to the broader market.