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What Is a Request for Quote (RFQ) System and How Does It Inherently Mitigate Front-Running?

An RFQ system is a method of trading where a buyer requests a price (a quote) from one or more market makers. The market makers respond with their best bid/ask prices, and the buyer chooses the best quote.

This process is typically private and off-exchange, meaning the order intention is not publicly visible in an order book. By keeping the order flow private, the RFQ system prevents front-runners from observing the pending order and trading ahead of it.

How Does the Latency of Quote Response Affect an RFQ-based Block Trade?
How Does a ‘Private Transaction Relay’ Prevent a Searcher’s Strategy from Being Copied?
Can a Single Derivative Contract Be Used for Both Hedging and Speculation?
What Is ‘Front-Running’ and How Is It Prevented by Dark Pools?