What Is the Primary Difference between an RFQ Platform and a Central Limit Order Book (CLOB) for Options Trading?

An RFQ platform facilitates bilateral or multilateral negotiations where a trader requests quotes from specific liquidity providers for a defined contract. The quotes are private until execution.

A CLOB, however, is an open, transparent system where all bids and offers are displayed publicly to all participants, and trades are matched based on price-time priority. RFQ is common for large, complex, or illiquid derivatives, while CLOB is standard for highly liquid, standardized products.