Finery Markets has introduced a Request-for-Quote (RFQ) execution method to enhance its leading non-custodial crypto ECN for institutional clients.
Complementing the existing order-book execution with firm quotes by global liquidity providers, the Request-for-Quote (RFQ) execution method establishes Finery Markets as the first hybrid crypto ECN.
The Request For Quote (RFQ) mode allows a buyer to request a quote for a specific volume of an asset pair and then receive responses from multiple liquidity providers competing for the order. RFQ is particularly well-suited for large trades, as it helps minimize market impact, or for specific assets where continuous markets are unavailable.
How RFQ works
An RFQ, or Request for Quote, is a process used in financial markets where a buyer requests pricing information for a specific quantity of a financial instrument from multiple sellers. It is commonly used in bonds, options, and foreign exchange trading.
- Request for Pricing: The buyer submits an RFQ to multiple potential sellers (usually market makers or liquidity providers) specifying details like the instrument, quantity, and type of trade.
- Quotes Received: Sellers respond with their quotes, often including pricing and conditions.
- Selection: The buyer selects the best quote based on price, counterparty, or other criteria, and proceeds with the trade.
- Execution: The transaction is then executed, typically over-the-counter (OTC) or through electronic trading platforms.
- Best Suited For: RFQs are best suited for institutional investors and large trades where price negotiation and transparency are critical. This approach works well in less liquid markets, where price discovery can be challenging, and investors need to see competitive quotes to achieve optimal pricing. It also helps traders maintain discretion until a suitable quote is accepted.
Finery Markets relocated to AWS Japan for enhanced crypto price discovery
By integrating both order-driven and quote-driven markets, Finery Markets now offers customers the flexibility to choose their preferred execution method.
Finery Markets highlighted that, before launching the new hybrid mode ECN, the firm relocated its trading servers to Amazon Web Services (AWS) in Japan.
The goal was to position the servers closer to the crypto price discovery center, thereby enhancing the processing and analysis of market data. This way, clients gain a competitive edge while maintaining a secure and robust trading infrastructure.
“In trading, there is no one-size-fits-all solution”
Konstantin Shulga, Finery Markets CEO, commented: “In trading, there is no one-size-fits-all solution. We believe that a hybrid model offers significant value to our customers. This approach combines the transparency and execution certainty of order-driven systems with the deep liquidity and minimal market impact of quote-driven models.”
Since 2019, the firm order book at Finery Markets has been delivering continuous pricing sourced from a diverse range of global liquidity providers. By aggregating this liquidity, the ECN’s matching engine adheres to the principle of “best execution,” ensuring optimal trade outcomes. Additionally, Finery Markets ECN provides ‘no last look’ execution, meaning that trades are executed without rejections from liquidity providers, even in rapidly changing market conditions.
Finery Markets was launched in 2019 and has grown to become a leader in premier non-custodial crypto ECN, connecting institutional players in over 35 countries across North America, Europe, Asia, LatAm, and Africa.
Holding a SOC 2 Type 1 certification, the company caters to more than 150 digital asset clients, including payment providers, brokers, OTC desks, hedge funds, and custodians.
