Non-Discriminatory Quoting refers to the practice of providing identical bid and ask prices to all counterparties for a given asset and quantity, regardless of their identity or prior trading history. This definition describes a market-making principle ensuring fairness and equal access to liquidity. In crypto Request for Quote (RFQ) systems, its purpose is to foster transparency and prevent preferential pricing, thereby promoting a more equitable trading environment.
Mechanism
The operational logic for Non-Discriminatory Quoting relies on an automated system that generates quotes based purely on market conditions, internal risk parameters, and inventory levels, without factoring in specific counterparty identifiers. This mechanism ensures that once a quote is determined, it is presented uniformly to all eligible requestors. The system’s architecture isolates the quote generation process from counterparty-specific data points to maintain impartiality.
Methodology
The strategic approach to Non-Discriminatory Quoting centers on compliance with market fairness principles and building broad market trust. Methodological principles include maintaining robust, transparent pricing algorithms and auditing systems to verify consistent quote delivery. This approach aims to attract a wider range of participants by assuring them of fair treatment, ultimately enhancing market liquidity and stability by reducing information asymmetry and potential for abuse in crypto trading venues.
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