How Does Latency Affect Execution Quality on Both RFQ and CLOB Platforms?

On a CLOB, lower latency is crucial for gaining a competitive edge, as faster participants can react to market changes and secure the best prices. On an RFQ platform, while still important, latency is less critical for the initiator.

However, for the Liquidity Providers, low latency is essential to update their quotes and hedge their positions before market conditions change, impacting the quality and tightness of their quotes.