RFQ Trading Will Enhance Liquidity and Execution for Large OTC Trades
DUBAI, UAE, March 6, 2025 /PRNewswire/ -- Deribit, the world's premier digital assets derivatives exchange, today announced the launch of a new and improved way to request and execute block trades directly on the Deribit platform, the Deribit Block Request-For-Quote (RFQ) interface. The revamped Block RFQ interface allows traders to request quotes for block trades and then execute against the quoting party without hitting public order books.
Block RFQ is now accessible to all traders on Deribit; however, it is designed primarily for those requiring greater liquidity for large transactions and is subject to a higher minimum trade size requirement. Deribit's RFQ solution offers a flexible product suite, allowing users to request structures composed of options, futures, or spot pairs. Users can incorporate up to 20 legs within a single structure, with no restrictions on the ratios between them, enabling the creation of highly customized trading strategies.
Deribit CEO Luuk Strijers commented on the news, "With the launch of Block RFQ, we are providing traders with a more efficient and flexible way to execute large and complex trades. This feature will improve liquidity access and significantly enhance the user experience by streamlining trade execution and reducing latency. By accelerating the speed of trading and expanding the range of our platform offering, we are reinforcing our commitment to innovation and ensuring that our institutional and high-volume traders have the best possible tools at their disposal."
The block trading process on Deribit follows a structured sequence. First, the requestor (referred to as the "taker") submits an RFQ for a specific single- or multi-leg strategy. Once the RFQ is created, market makers can respond with either single- or double-sided quotes. Following this, the most competitive bid and ask quotes are displayed to the taker, who has the option to accept and execute a trade. The taker is only permitted to trade the amount specified in the initial RFQ. A new request can be submitted with any parameters change, or if the quote has expired.
Deribit is also introducing an innovative multi-maker model, a model that allows makers to provide competitive pricing for a smaller quantity than the total amount requested by the taker while being protected against adverse selection. For takers, the multi-maker model offers the chance to get a price improvement from a combination of several makers, rather than only having All-Or-None (AON) quotes to choose from.
The Deribit Block RFQ system introduces a highly efficient mechanism for executing larger trades on the Deribit platform. It was also designed with other block trade platforms in mind. Indeed, any third-party block trade platform is welcome to connect its system to the new Deribit Block RFQ system, offering the benefit of centralizing liquidity from multiple sources. Instead of a taker on a third-party platform being limited to the makers on that platform, they can gain access to makers on Deribit and also other third-party platforms for enhanced liquidity.
More information on Deribit Block RFQ can be found here.
About Deribit
Deribit is a centralized, institutional-grade crypto derivatives exchange for options and futures trading based in Dubai, United Arab Emirates. Deribit's state-of-the-art infrastructure offers instantaneous price discovery, low latency trading, advanced risk mitigation services, and deep liquidity via its network of top-tier market makers. Led by a team with decades of experience in options trading across all markets, Deribit facilitates a significant majority of all crypto options trading and has robust proof of assets and liabilities procedures to ensure the exchange is held to the highest of standards. Deribit has been consistently acknowledged as a leader in space as one of few exchanges to secure the ISO 27001 certificate and was named Best Exchange for Innovation by Hedgeweek.
For additional information, visit: https://www.deribit.com
Media Contact
M Group Strategic Communications (On behalf of Deribit)
deribitpr@mgroupsc.com
Logo - https://mma.prnewswire.com/media/2359647/Deribit_logo.jpg
View original content:https://www.prnewswire.co.uk/news-releases/deribit-introduces-block-request-for-quote-rfq-interface-for-on-demand-liquidity-302394014.html
