Imported from previous forum
Hi,
Can some on please tell me the difference between RFQ vs RFS.
This is the information I got from various post
"MarketDataRequest (msg type 35=V) used for subscribing ESPs (Executable StreamingPrices) where as QuoteRequest (msg type35=R) used for
subscribing RFQs/RFSs (RequestForStream/Quote)."
My question is
- What is difference between RFQ and RFS?
- if 35=R is for both RFS/RFQ, then how to make difference between them
Hi prashantch_x
As stated in investopedia (website),
RFQ is also known as “an invitation for bid”. In reality, RFQ is an “old” business model. For example, You need 100 servers for your business and you do a bidding offer like “someone has a good price for 100 servers please ?”. So traders translated this business model into FX.
Therefore in FX, It’s the same, you have 100K EUR/USD and you ask if a provider have a good price ? And the bid have an elapse time (few seconds). So dont miss It !
For RFS, bid or ask (buy or sell), you dont mind. The RFS, for me, is much more in the streaming.
I mean by that you have a streaming of prices with the possibility to hit or not a price (buy or sell side).
And, for RFS you can have Outright, Swap, NDF, even a NOS.
In conlusion : you can find an RFQ streaming prices in RFS streaming prices. Some of providers provide specificaly the RFQ protocol (method) for this kind of trade.
Hope that helps if the question will come up again.
Kay P.