How Does an RFQ Platform Differ from a Central Limit Order Book (CLOB)? ▴ Learn

How Does an RFQ Platform Differ from a Central Limit Order Book (CLOB)?

A CLOB is an anonymous, continuous matching system where bids and offers are displayed publicly and executed automatically based on price-time priority. An RFQ platform, however, is a bilateral or multi-lateral negotiation system where a trader requests specific quotes from selected counterparties.

RFQ is typically used for larger, less standardized, or block trades, offering better price discovery and less market impact than trying to fill a massive order on a CLOB. CLOBs offer transparency; RFQ offers discretion.

How Does the Minimum RFQ Size Relate to Regulatory Requirements for Block Trades?

Why Do Institutional Traders Often Prefer the Non-Custodial, Negotiated Nature of RFQ for Large Block Trades?

Are the Fees for Block Trading Different from Public Exchange Fees?

How Do ‘Dark Pools’ Differ from RFQ Platforms in Terms of Anonymity?