Request for Quote 2.0

Transform the way you trade

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Transform the way you trade, integrate the next generation of automated RFQ with order book sweep

London Stock Exchange’s RFQ 2.0 is revolutionising the ETP trading landscape, offering auto-complete RFQ functionality with an innovative order book sweep and direct central counterparty clearing (CCP) links, all under one exchange. It helps investors achieve better execution outcomes by accessing different types of liquidity instantly and in one place. The CCP links support operational efficiency as post-trade processes become more important in response to the Central Securities Depositories Regulation (CSDR).

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Key benefits

Leverage bilateral relationships

Bilateral relationships in an exchange environment with fully integrated CCP clearing

CCP clearing

CCP clearing is ideally suited to the Central Securities Depositories Regulation (CSDR)

Innovative order book sweep

Innovative order book sweep combines both RFQ and order book liquidity into one single best execution trading event

Counterparty risk management

Settlement clarity, balance sheet efficiency with no need to bilaterally paper with liquidity providers

Harmonised Exchange Market Supervision

Harmonised Exchange Market Supervision, improving market monitoring and surveillance

TCA friendly

TCA friendly, empowering more holistic analysis

How does it work?

  • Access RFQ 2.0 using your existing London Stock Exchange order book connectivity. The functionality allows execution directly on London Stock Exchange’s main market, achieving a “best full fill price” in a fully automated environment.
  • A tailored conditions-based execution model fits neatly into brokers’ “execution offering”. ETF investors will choose “London Stock Exchange RFQ” order routing via the normal equity execution channels.
  • Auto-complete has simplified RFQ trading, turning the multi-click model into a ‘one click’ “send & trade” approach. By not limiting the request to just RFQ responses, RFQ 2.0 can improve on the risk price and trade against lit & hidden liquidity on the order book – achieving a better execution price.

RFQ 2.0 explained

To support the varied trading needs of our customers, London Stock Exchange introduced RFQ 2.0 for ETFs and ETPs. Watch this short film for a quick overview of how the functionality works.

Supporting ETF investor's varying needs,London Stock Exchange is revolutionising the Request for Quote Market.Introducing RFQ 2.0Today's ETF trading landscape is a fragmented marketplacewhere offering are spread across various exchange and RFQ platforms.Investors are mainly trading ETFs via RFQsand only receiving risk pricing.But investors are not interacting with visible or hidden passive liquidity on order books.Interacting bilaterally with just liquidity providers is limitingand requires legal agreements and ongoing due diligence.As these platforms are often not CCP cleared,they can introduce counter party risk leading to settlement risk.Preferable approach are available to investors.London Stock Exchange RFQ 2.0 is changing this landscape foreverWe're integrating all these elements under one exchange.We're offering auto-complete, RFQ functionality and innovative order book sweep with built-in CCP clearing.We're helping investors achieve better outcomesby instantly accessing different types of liquidity in one place.How does RFQ 2.0 work?Use your existing London Stock Exchange order book connectivity to access RFQ 2.0.The functionality allows execution directly on London Stock Exchange's Main Market,achieving a best full fill price for you in a fully automated environment.Auto-complete has simplified RFQ trading, turning the multi-click modelinto a one-click send-and-trade approach.Because we're not limiting the request to just RFQ responses,we can improve on the risk price and trade against lit and hidden liquidity on the order book.The result is a better execution price.A tailored, conditions-based execution model is designed to fit neatly into brokers' execution offering.RFQ 2.0 benefits users with bilateral relationships in an exchange environment.Fully integrated CCP clearing provides settlement clarity,balance sheet efficiency and removes the need to paper bilaterally with liquidity providers.CCP clearing is also ideally suited to the impact of Central Securities Depositories Regulation.Integrate the next generation of automated RFQ with ORDER BOOK SWEEPLondon Stock Exchange RFQ 2.0Contact London Stock Exchange for more details.

Evolution of ETFs Video Series

Watch this four-part video series to explore the key drivers and trends shaping the ETF landscape, from regulation shifts to investor demand, the rise of algorithmic trading and the growing interest into diversification of investor portfolios.

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Contact us

Interested in RFQ 2.0? Complete the form below and a member of our team will be in touch.

  •
    Tom Stenhouse
    CEO Turquoise and Head of Product, Equities Trading
  •
    Alex Watkins
    ETP Business Development Lead
  •
    Ali Al-Abadi
    ETP Product Manager
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