What Is the Benefit of Multi-Dealer RFQ for the Trade Initiator? ▴ Learn

What Is the Benefit of Multi-Dealer RFQ for the Trade Initiator?

The main benefit of a multi-dealer RFQ is competitive price discovery. By simultaneously requesting quotes from several liquidity providers, the trade initiator ensures they receive the best possible price for their block trade.

This competitive environment drives the bid-ask spread tighter than might be available from a single dealer. Furthermore, it increases the probability of finding a counterparty willing to take on the large trade size, ensuring better execution certainty.

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