What Are the Regulatory Implications of Trading Derivatives on an RFQ Platform versus a CLOB?

Regulatory oversight often differs. CLOBs, being open and transparent, typically fall under stricter market integrity and surveillance rules.

RFQ platforms, especially for OTC derivatives, may operate under less stringent requirements, sometimes categorized as a Multilateral Trading Facility (MTF) or Organized Trading Facility (OTF). The level of pre- and post-trade transparency is a key regulatory distinction.