What Is the Advantage of a Multi-Dealer RFQ System over a Single-Dealer Platform?
A multi-dealer RFQ system provides the client with a competitive bidding environment, ensuring they receive the best possible price from a selection of liquidity providers. This competition typically results in a tighter spread and better execution compared to a single-dealer platform, where the client is limited to the pricing offered by that sole counterparty.
It also helps validate the market price.