The migration of options markets to the electronic screen for execution has increased in recent years, with over 50% of options now traded electronically. The use of Request for Quotes (RFQ) has played a key role in enabling that transition to occur by allowing traders to electronically execute multi-leg and hedged options strategies.
ADMIS is pleased to announce that OAK Desktop now offers the RFQ function for option strategies for products at the following exchanges – CBT, CME, NYMEX, and COMEX!
What is an RFQ?
- An electronic notification sent to all CME Globex participants that expresses interest in a specific strategy or instrument. It is similar to asking for a bid/offer on an option strategy from the trading floor pit.
- An RFQ is automatically distributed to the marketplace when a user creates a new multi-legged spread for trading. The RFQ alerts interested participants to submit bids and offers on the specified instrument. A user can also submit an RFQ on an existing instrument where there is no market.
- Responding markets are active and tradable. You can place an order based on the bid or offer received or choose to just monitor the market. The RFQ market is completely anonymous.
- CME video that provides further information about RFQ - *CME Article Chromeless Video Player v1](*CME Article Chromeless Video Player v1)
We believe this added function will provide users the ability to better utilize Globex to execute option spread contracts. If you would like to explore this with Optimus Futures, please call us 1 800 771 6748 or email firstname.lastname@example.org