Definition
A request for quote is a trading workflow where a client requests a firm, time-limited price from one or more counterparties for a specified instrument and size, then chooses whether to execute against one of the returned quotes. In an institutional RFQ trading workflow, the request defines the asset, side, size, settlement or custody constraints, and quote-validity window; liquidity providers return executable prices; the desk accepts one quote; and the system records the request, quote, execution, allocation, and settlement trail. RFQ is common in fixed income, OTC derivatives, institutional stablecoin trading, and digital asset block trading because it lets large orders be priced without exposing intent to a public order book. Institutional RFQ systems support multi-dealer quote requests, executable streaming prices, and full audit of the quote and execution chain.
Example
A hedge fund sends an RFQ for 500 BTC, or for a large stablecoin conversion, to three OTC liquidity providers. Each returns a firm quote valid for 30 seconds. The fund executes against the best quote, with the full quote-and-execution chain logged for best-execution documentation and settlement follow-up.
How Liquid Mercury Handles This
Mercury OTC delivers institutional RFQ workflows with multi-dealer quoting, RFS and streaming quote support, executable pricing, auditable quote chains, integrated compliance chat, settlement automation, and integration with the OMS for allocation and reporting downstream.