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

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.

How Do ‘Indicative Quotes’ Differ from ‘Firm Quotes’ in an RFQ System?

How Does an RFQ Model Affect the Transparency of Price Discovery Compared to a CLOB?

How Does a Request for Quote (RFQ) System Differ from an Order Book Exchange in Derivatives?

What Is a ‘Central Limit Order Book’ (CLOB) and Its Role in Options Trading?

How Does an RFQ Platform Differ from a Central Limit Order Book (CLOB)?

Can a Single Options Trade Be Executed across Both an RFQ Platform and a CLOB Simultaneously?

Why Are Illiquid Crypto Options Often Traded on RFQ Platforms Instead of CLOBs?

What Is the “Price-Time Priority” Rule in Order Matching and How Does It Deter Front-Running?