Paradigm Expands RFQ Capabilities via Multi-Dealer & Anonymous Trading

Published On

November 19, 2020

Paradigm, the leading OTC liquidity network, announced a further expansion of its flagship RFQ trading capabilities via the launch of Multi-Dealer RFQ (MDRFQ) trading.

Paradigm provides a single-point of access to multi-dealer, block liquidity for listed futures and options across the largest crypto-derivatives exchanges including Deribit, Bit.com and the CME. In October, traders on Paradigm got better-than-screen prices, saving an average of 2.4 ticks (12 bps) on their large and multi-leg order flow by connecting directly with dealers in the Paradigm network. The platform routinely accounts for 20-30% of global cryptocurrency option flows and saw a new all-time-high of $286m in traded volume in a single day (October 30), on the back of strong demand for options in the run up to the US Presidential Election.

The firm has a global network of 270+ counterparties, that includes Hedge Funds, OTC Desks, Lenders, Structured Product Issuers, Market Makers, and Family Offices.

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Multi-Dealer RFQ and Anonymous Trading

MDRFQ offers on-demand access to the most competitive prices for larger size trades without the need for manually intensive bilateral negotiations. Clients can simultaneously request two-way quotes from multiple dealers on a disclosed or anonymous basis without revealing their trade direction and instantly execute on the Best Bid/Offer. This new functionality aggregates prices onto a single screen with the option of shielding a clients’ identity which prevents information leakage and minimizes the effect of any adverse pre-trade movements in price. The release of MDRFQ trading along with the recent introduction of Zero fees for both Takers and Makers fulfills a core company promise to provide frictionless access to liquidity for our institutional clients.

MDRFQ Launch Week Stats

We’re extremely pleased that the MDRFQ has exceeded our clients’ expectations,” said Michal Koonin, Head of Sales and Trading at Paradigm “68.9% of all RFQs last week were executed via the new MDRFQ feature with 74.5% of those RFQs transacted on an anonymous basis. Clients have been very happy with the improved speed and competitiveness of received quotes and the ability to remain anonymous, all of which have significantly improved the trading experience.

MDRFQ is the direct result of our client’s valued feedback and will significantly improve the quality of our already market-leading Paradigm Liquidity Network. As a result, we expect the MDRFQ to be at the centre of our clients’ workflows moving forward

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Michal Koonin
Jing Tan