Request For Quotes
SwapEx supports Request for Quote-driven ('RFQ') execution styles, accommodating this popular trading mechanism. Many users prefer Request for Quote as their intended execution style and, so long as it is offered alongside a functioning, it can be offered as a style of execution by the SEF. There two types of RFQ supported by SwapEx: Traditional RFQ and Reserve RFQ.
SwapEx allows any subscriber to initiate an RFQ, which will be delivered to selected liquidity providers, who will – in turn – provide liquidity back to the requestor.
Any subscriber can declare an interest to act as a liquidity provider to RFQ initiators and those subscribers will be listed as available counterparties to a request for quote. SwapEx enforces the CFTC requirements relating to minimum number of counterparties when applicable.
Typical RFQs will be handled on a fully-disclosed, attributed basis, notwithstanding the fact that clearing and settlement will revert to the counterparty relationships established on the platform (including DCOs and FCMs).
SwapEx allows participants to provide continuous liquidity on a set of pre-determined instruments to the liquidity takers of their choosing, within the confine of the CFTC regulations regarding minimum counterparties, who can in turn act on those quotes.
Similarly to a Traditional RFQ, transactions will be handled on a fully disclosed and attributed basis, but also be eligible for clearing where available.