In crypto trading, particularly within institutional request for quote (RFQ) systems, the affirmation rate represents the proportion of executed trades formally confirmed and agreed upon by all involved counterparties post-execution. This metric quantifies the efficiency and reliability of the post-trade settlement process for digital asset transactions. A higher rate indicates a robust and streamlined operational workflow, reducing downstream processing issues.
Mechanism
The mechanism involves a sequence where, after a trade’s execution via an RFQ platform, each counterparty independently verifies the trade’s specifics, including asset, quantity, price, and settlement terms, against their internal records. This verification data is then transmitted to a central or distributed affirmation system. The system matches these confirmations; if discrepancies are absent, the trade receives an affirmed status, proceeding to final settlement.
Methodology
Optimizing the affirmation rate relies on standardizing data exchange formats, such as FIX protocol extensions adapted for digital assets, and implementing automated reconciliation engines. It necessitates robust pre-trade credit checks and clear contractual frameworks between trading participants. The methodology aims to reduce manual intervention and operational risk by minimizing post-execution disputes and ensuring prompt, accurate trade validation.
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