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

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.

How Do Market Makers Utilize Dedicated Low-Latency Connections (Like Cross-Connects) for RFQ Platforms?

How Does the Speed of a Blockchain Network Affect the Latency of Crypto Derivatives Trading?

What Is the Impact of Latency on Execution Quality in Both CLOB and RFQ Systems?

How Does Implied Volatility Calculation Factor into Quoting for Crypto Options RFQs?

How Can a Market Maker Use Latency to Their Advantage in an RFQ System?

How Do Quoting Engines Integrate with Portfolio Margining Systems for Capital Efficiency?

Are There Hybrid Models That Combine Features of CLOB and RFQ Systems?

How Does ‘Forking’ a Protocol Affect Its Competitive Advantage?

Glossar

Execution Quality

Precision ⎊ ⎊ Execution Quality in cryptocurrency, options, and derivatives markets denotes the degree to which a trade is completed at terms consistent with the trader’s intent, minimizing adverse selection and information leakage.

CLOB

Execution ⎊ Central Limit Order Books (CLOBs) represent the foundational infrastructure for price discovery and trade execution within cryptocurrency exchanges and regulated derivatives markets, functioning as a digitized order book mirroring traditional financial systems.