What Is a “Firm Quote” and Why Is It Important in an RFQ Environment?

A Firm Quote is a price offered by a liquidity provider that they are legally or contractually obligated to honor for the specified size and duration, without the ability to use "last look" or withdraw the quote. It is important in an RFQ environment because it provides the trade initiator with execution certainty.

A firm quote ensures that once the initiator accepts the price, the trade will be executed immediately at that price, eliminating the risk of re-quoting or rejection.