Request for Quote

Request for Stream

Executable Streaming Prices

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Execution Methods · Executable Streaming Prices (ESP) · Request for Stream/Request for Quote (RFS/RFQ).
Request for Stream/Request for Quote (RFS/RFQ)
The key benefits of this method of execution include:
No limit on the number of banks or liquidity providers for each price request
No minimum amount required to trade; odd lots and broken dates permitted
A real-time comparison between the best price and all other prices
Capturing all price quotes at time of execution allows for analysis of price providers
Trade history to facilitate your transaction cost analysis (TCA) and audit trail
STP, workflow solutions and trade history complete the offering

Executable Streaming Prices (ESP)
Executable Streaming Prices are available for FX Spot and Precious Metals Spot via our ESP execution functionality. Key benefits of this execution method include:
A real marketplace with hundreds of market participants and diverse liquidity sources
Ability for participants to be passive or aggressive, earn spread or pay spread, which facilitates continuous markets and price discovery
Precision pricing in each currency pair
Ability to aggregate and configure multiple liquidity streams based on preferences and relationships, to create private liquidity pools that are unique to each client’s trading needs and style
Wide range of order types e.g simple, complex or algorithmic, to empower clients to customise how they express risk

Below is an interesting comment:


Waratah comments on LH’s use of RFS rather than the RFQ model used by Bloomberg, TradeWeb & BondVision. RFS is preferred because “the banks feel this is the fairest method for both sides of the market”. One can’t help suspecting a degree of self interest on the part of dealers in opting for RFS – surely it can’t all be for the benefit of the buy side ?

With an RFQ, a client is offered a firm, executable price that is good for the “wire time”: three seconds in the case of Bloomberg. If the client clicks hit/lift during the wire time, the trade is done at that price – no ifs and buts. With RFS, the client clicks on a price, which then goes back to the dealer for a last look. The dealer may reject the trade at that point. Does that favour the client or the dealer ?