Direct Dealer Access grants institutional clients the capability to execute trades directly with market-making entities for digital assets, bypassing public exchanges. This form of interaction facilitates private, over-the-counter (OTC) transactions, particularly for large block orders in the crypto request for quote (RFQ) market.
Mechanism
This access typically involves secure API integrations or dedicated communication channels that allow institutional participants to request and receive direct price quotes from liquidity providers. Trades are negotiated and settled bilaterally, offering discretion and potentially better pricing for significant volumes.
Methodology
The strategic advantage of direct dealer access lies in reducing market impact, minimizing slippage, and achieving execution certainty for substantial capital deployments. It provides a means for institutional investors to manage large positions without influencing public order books, optimizing trade execution and risk management in illiquid or volatile crypto markets.
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