Panel segmentation refers to the strategic division of market participants or liquidity providers into distinct groups, or “panels,” based on specific criteria such as trading volume, risk appetite, or specialization in certain asset classes. In crypto Request for Quote (RFQ) systems, this allows institutions to selectively solicit prices from a tailored group of dealers. This optimizes pricing and execution quality by matching specific trade requirements with suitable counterparties.
Mechanism
The mechanism involves a configurable system that classifies and assigns liquidity providers to different panels based on pre-defined attributes. When an institutional client initiates an RFQ, the system dynamically selects the relevant panel of dealers to receive the request, considering factors like trade size, asset type, and desired execution speed. This intelligent routing ensures that only qualified and relevant market makers are invited to quote.
Methodology
The methodology employs a data-driven approach to optimize panel composition and selection rules, continuously analyzing dealer performance metrics such as fill rates, price competitiveness, and response times. This strategic framework aims to enhance operational efficiency for both clients and dealers, reducing search and discovery costs for large crypto trades. The system architecture supports configurable access controls and performance analytics for each segment.
We use cookies to personalize content and marketing, and to analyze our traffic. This helps us maintain the quality of our free resources. manage your preferences below.
Detailed Cookie Preferences
This helps support our free resources through personalized marketing efforts and promotions.
Analytics cookies help us understand how visitors interact with our website, improving user experience and website performance.
Personalization cookies enable us to customize the content and features of our site based on your interactions, offering a more tailored experience.
