Why Are RFQ Platforms Commonly Used for Illiquid or Complex Options Strategies?

Illiquid or complex options strategies, such as multi-leg spreads or options on exotic derivatives, are poorly suited for a CLOB because they lack standardized pricing and sufficient continuous volume. RFQ platforms allow the seeker to package the entire strategy into a single request, soliciting quotes from expert market makers who can price the complexity holistically.

This ensures better execution quality and reduces the risk of leg-by-leg execution failure (e.g. a "leg out" risk).