A preliminary expression of a market participant’s desire to transact, sufficiently detailed and concrete to warrant further engagement or the generation of a firm quote within a Request for Quote (RFQ) system. This signal implies a genuine intention and provides enough specificity regarding asset, size, and direction for a market maker to assess and respond with a tradable price, particularly within institutional crypto options or spot markets.
Mechanism
An Actionable Indication of Interest typically originates from a buy-side participant and is transmitted through an RFQ platform, a secure messaging channel, or a smart contract interface. This transmission carries metadata specifying the crypto asset, quantity, side, and potentially preferred execution venue or price range, enabling automated systems or human traders to evaluate the request against current market conditions, inventory, and risk parameters. The system processes this data to determine eligibility for a quote, filtering non-actionable signals and routing valid requests to appropriate liquidity providers.
Methodology
The strategic value of an Actionable Indication of Interest lies in its capacity to streamline the price discovery process and optimize liquidity sourcing in nascent or less liquid crypto markets. By providing a structured signal of demand, it reduces informational asymmetry and allows market makers to quote more competitively, minimizing the cost of capital allocation. This methodology enhances execution efficiency by facilitating targeted responses and reducing the overall latency from interest expression to trade execution, aligning with principles of efficient market design in decentralized finance and traditional finance interfaces.
LIS and SSTI are distinct MiFID II waivers calibrating pre-trade transparency to enable strategic execution of large orders in different trading protocols.
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