# Can a Lit Order Book and an RFQ Protocol Coexist for the Same Asset Class? ▴ Question

**Published:** 2025-08-06
**Categories:** Question

---

![Two sleek, abstract forms, one dark, one light, are precisely stacked, symbolizing a multi-layered institutional trading system. This embodies sophisticated RFQ protocols, high-fidelity execution, and optimal liquidity aggregation for digital asset derivatives, ensuring robust market microstructure and capital efficiency within a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/institutional-grade-digital-asset-derivatives-platform-architecture-high-fidelity-execution-protocols-and-liquidity-aggregation.jpg)

![A focused view of a robust, beige cylindrical component with a dark blue internal aperture, symbolizing a high-fidelity execution channel. This element represents the core of an RFQ protocol system, enabling bespoke liquidity for Bitcoin Options and Ethereum Futures, minimizing slippage and information leakage](https://options.greeks.live/wp-content/uploads/2025/07/institutional-grade-digital-asset-derivatives-rfq-engine-core-precision-component.jpg)

## Concept

The coexistence of a lit order book and a [Request for Quote](https://prime.greeks.live/area/request-for-quote/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (RFQ) protocol within the same asset class represents a sophisticated evolution in market architecture. This dual structure is an engineered solution to the multifaceted nature of liquidity itself. A [central limit order book](https://prime.greeks.live/area/central-limit-order-book/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (CLOB) serves as the system’s transparent, foundational layer, processing a continuous stream of anonymous, standardized orders.

It operates on a price-time priority, creating a public record of supply and demand accessible to all participants simultaneously. This mechanism excels at discovering the price for granular, liquid order flow.

Parallel to this continuous market, the RFQ protocol functions as a discreet, on-demand liquidity access channel. An institutional trader initiates this process to source competitive, executable prices for a specific quantity from a select group of [liquidity providers](https://prime.greeks.live/area/liquidity-providers/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). This is a one-to-many communication path, designed for transactions that, due to their size or complexity, would face significant adverse selection and [market impact](https://prime.greeks.live/area/market-impact/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) costs if placed directly onto the lit book.

The core operational principle is the containment of [information leakage](https://prime.greeks.live/area/information-leakage/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). By revealing the trade inquiry only to chosen counterparties, the initiator protects their full intention from the broader market, preserving the prevailing price structure.

> A hybrid market structure integrates the continuous, anonymous price discovery of a lit book with the discreet, targeted liquidity access of an RFQ protocol.

Therefore, the two systems are complementary. The CLOB provides a constant, reliable price reference, while the [RFQ protocol](https://prime.greeks.live/area/rfq-protocol/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) provides a mechanism for executing large or specialized orders with minimal price dislocation. The [lit book](https://prime.greeks.live/area/lit-book/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) answers the question, “What is the price right now for a standard unit?” The RFQ protocol answers the question, “What is the best price I can get for a non-standard quantity, right now, without disrupting the market?” The successful operation of a modern, efficient marketplace for complex assets, such as derivatives or less liquid bonds, depends on having both systems operating in concert. This allows for a more complete and efficient transfer of risk across a wider range of market participants and trade sizes.

![A polished, teal-hued digital asset derivative disc rests upon a robust, textured market infrastructure base, symbolizing high-fidelity execution and liquidity aggregation. Its reflective surface illustrates real-time price discovery and multi-leg options strategies, central to institutional RFQ protocols and principal trading frameworks](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-derivatives-rfq-protocols-high-fidelity-institutional-execution.jpg)

![A dual-toned cylindrical component features a central transparent aperture revealing intricate metallic wiring. This signifies a core RFQ processing unit for Digital Asset Derivatives, enabling rapid Price Discovery and High-Fidelity Execution](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-core-best-execution-prime-os.jpg)

## Strategy

The strategic decision to deploy both a CLOB and an RFQ protocol is rooted in the recognition that a single market mechanism cannot efficiently serve all types of participants or all order sizes. A hybrid architecture allows a trading venue to segment order flow, directing different types of liquidity requirements to the most suitable execution channel. This segmentation is a deliberate strategy to maximize overall market quality, balancing the need for public [price discovery](https://prime.greeks.live/area/price-discovery/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) with the institutional necessity of discreet, large-scale risk transfer.

![An intricate, transparent digital asset derivatives engine visualizes market microstructure and liquidity pool dynamics. Its precise components signify high-fidelity execution via FIX Protocol, facilitating RFQ protocols for block trade and multi-leg spread strategies within an institutional-grade Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-digital-asset-derivatives-rfq-liquidity-ecosystem.jpg)

## The Strategic Rationale for a Hybrid Market Structure

The primary driver for this dual-protocol system is the management of market impact. A large institutional order placed directly onto a lit [order book](https://prime.greeks.live/area/order-book/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) would consume multiple levels of liquidity, causing a significant, adverse price move. This slippage represents a direct cost to the initiator. The RFQ protocol is the strategic countermeasure.

It allows the institution to privately negotiate a single price for the entire block with specialized liquidity providers who are capitalized to handle such risk. These providers compete to price the order, ensuring the initiator receives a competitive quote while the transaction itself remains off the public book, thus preventing information leakage and minimizing impact.

For standardized, smaller orders, the CLOB remains the superior mechanism. Its anonymity and speed provide an efficient environment for high-frequency trading and retail flow, which collectively contribute to a tight bid-ask spread and a robust, publicly visible price. The health of the CLOB is, in fact, vital for the RFQ protocol, as the lit market price serves as the primary benchmark against which RFQ quotes are evaluated. A trader receiving RFQ responses will constantly measure them against the CLOB’s prevailing bid or offer to calculate the degree of [price improvement](https://prime.greeks.live/question/could-a-different-market-structure-achieve-both-price-improvement-and-efficient-price-discovery-simultaneously/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite).

> Optimal execution strategy involves routing orders to the protocol that best mitigates the primary risk of that specific trade, whether it be price slippage or information leakage.

![A stylized abstract radial design depicts a central RFQ engine processing diverse digital asset derivatives flows. Distinct halves illustrate nuanced market microstructure, optimizing multi-leg spreads and high-fidelity execution, visualizing a Principal's Prime RFQ managing aggregated inquiry and latent liquidity](https://options.greeks.live/wp-content/uploads/2025/07/principal-rfq-execution-engine-optimizing-digital-asset-derivatives-market-microstructure-for-institutional-liquidity-aggregation.jpg)

## How Does Liquidity and Anonymity Dictate Protocol Choice?

The choice of execution protocol is a function of the trade’s specific characteristics and the institution’s strategic objectives. Anonymity and liquidity are the core variables in this calculation. The CLOB offers complete pre-trade anonymity to the entire market, while the RFQ protocol offers targeted disclosure to a select group of counterparties. The strategic implications of this are profound and dictate how different types of flow should be handled.

The following table provides a comparative analysis of the two primary execution protocols:

| Feature | Central Limit Order Book (CLOB) | Request for Quote (RFQ) |
| --- | --- | --- |
| Price Discovery | Continuous, public, and multilateral. The price is formed by the interaction of all open orders. | Episodic, private, and bilateral/multilateral within a small group. The price is a firm quote valid for a short duration. |
| Anonymity | Full pre-trade anonymity. Participants interact with the order book, not each other. | Disclosed identity between initiator and responders. The inquiry is hidden from the general market. |
| Market Impact | High for large orders. The act of trading is fully transparent and moves the market price. | Low to negligible. The trade occurs off-book, preventing price dislocation from the inquiry itself. |
| Counterparty Selection | None. The system matches any willing counterparty based on price-time priority. | Full. The initiator chooses which liquidity providers are invited to quote on the order. |
| Ideal Trade Size | Small to medium. Suited for orders that will not exhaust the top-of-book liquidity. | Large blocks and non-standard instruments. Designed to handle size without slippage. |
| Asset Liquidity Profile | Best for highly liquid, standardized assets with tight spreads. | Effective for both liquid and illiquid assets, including complex derivatives. |

A portfolio manager’s strategic considerations when selecting an execution protocol include several key factors. These elements guide the decision-making process to align the execution method with the overarching investment goals.

- **Urgency of Execution** ▴ A CLOB provides immediate execution for marketable orders, while an RFQ process introduces a brief delay for quote solicitation and response.

- **Information Sensitivity** ▴ For trades that reveal a larger strategy, the discretion of an RFQ is paramount to prevent other market participants from trading ahead of the full position.

- **Counterparty Risk Management** ▴ RFQ allows institutions to trade only with trusted liquidity providers, which is a critical component of institutional risk management frameworks.

- **Search for Price Improvement** ▴ For large orders, the potential to secure a price inside the lit market’s bid-ask spread via RFQ often outweighs the benefits of the CLOB’s immediacy.

![A layered, spherical structure reveals an inner metallic ring with intricate patterns, symbolizing market microstructure and RFQ protocol logic. A central teal dome represents a deep liquidity pool and precise price discovery, encased within robust institutional-grade infrastructure for high-fidelity execution](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-prime-os-orchestrating-rfq-protocols-for-high-fidelity-execution-and-multi-asset-liquidity.jpg)

![Sleek, modular infrastructure for institutional digital asset derivatives trading. Its intersecting elements symbolize integrated RFQ protocols, facilitating high-fidelity execution and precise price discovery across complex multi-leg spreads](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-system-optimizing-high-fidelity-block-trade-liquidity-and-multi-leg-spread-precision.jpg)

## Execution

The execution of trades within a [hybrid market](https://prime.greeks.live/area/hybrid-market/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) system requires a sophisticated operational framework. Institutional traders leverage advanced [Execution Management](https://prime.greeks.live/area/execution-management/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) Systems (EMS) that can intelligently route orders to the optimal venue ▴ the lit book or the RFQ protocol ▴ based on a predefined set of rules or real-time trader decisions. The ultimate goal is to achieve “best execution,” a concept that encompasses not just the best possible price but also factors like speed, certainty of execution, and minimal market impact.

![Abstract dual-cone object reflects RFQ Protocol dynamism. It signifies robust Liquidity Aggregation, High-Fidelity Execution, and Principal-to-Principal negotiation](https://options.greeks.live/wp-content/uploads/2025/08/institutional-grade-rfq-execution-framework-for-digital-asset-derivatives-optimal-liquidity-aggregation-and-atomic-settlement.jpg)

## The Operational Playbook

Executing a large block order for a complex instrument, such as an options spread, follows a clear, structured procedure within a hybrid environment. This playbook ensures that the trader systematically evaluates all available liquidity sources to achieve the optimal outcome.

- **Initial Market Assessment** ▴ The trader first analyzes the state of the CLOB via their EMS. They assess the depth of book, the visible size at the best bid and offer (BBO), and the width of the spread. This provides the baseline price reference.

- **Protocol Decision Point** ▴ Based on the order’s size relative to the visible liquidity on the CLOB, the trader makes a critical decision. If the order is substantially larger than the top-of-book size, executing it on the lit market would lead to unacceptable slippage. The decision is made to initiate an RFQ.

- **Dealer Selection and RFQ Submission** ▴ Within the EMS, the trader selects a list of trusted liquidity providers. The selection is based on historical performance, relationship, and specialization in the specific asset. The RFQ, containing the instrument, direction (buy/sell), and size, is sent simultaneously to this group.

- **Quote Aggregation and Analysis** ▴ The EMS aggregates the incoming quotes in real time. The trader sees a stack of firm, executable prices from the competing dealers. This is compared directly against the live CLOB price to calculate potential price improvement.

- **Execution and Confirmation** ▴ The trader selects the best quote by clicking on it within the EMS. The system sends an execution message to the winning dealer, and a trade confirmation is received. The transaction is reported to the appropriate regulatory body but does not print to the public tape in the same manner as a CLOB trade, thus preserving the integrity of the lit market.

![A sharp, reflective geometric form in cool blues against black. This represents the intricate market microstructure of institutional digital asset derivatives, powering RFQ protocols for high-fidelity execution, liquidity aggregation, price discovery, and atomic settlement via a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-digital-asset-derivatives-rfq-protocol-for-institutional-trading.jpg)

## Quantitative Modeling and Data Analysis

The decision to use RFQ over the CLOB can be modeled quantitatively. Consider an institutional desk needing to buy a large block of 500 at-the-money ETH call options. The following decision matrix illustrates the analytical process.

| Parameter | CLOB Execution Analysis | RFQ Execution Analysis | Decision Driver |
| --- | --- | --- | --- |
| Order Size | 500 Contracts | 500 Contracts | Size is the primary catalyst for considering RFQ. |
| CLOB Top-of-Book (Offer) | Price ▴ 0.05 ETH; Size ▴ 25 Contracts | N/A (Used as benchmark) | Order is 20x the visible liquidity, guaranteeing slippage. |
| Est. Slippage on CLOB | Average fill price estimated at 0.0525 ETH due to sweeping multiple price levels. | Slippage is zero; the quoted price is for the full size. | The cost of slippage on the CLOB is a major execution expense. |
| Est. Market Impact on CLOB | The act of buying would push the offer price up significantly, signaling buying pressure. | Minimal. The inquiry is private, and the trade is reported post-execution. | RFQ contains information leakage, protecting the firm’s broader strategy. |
| Number of RFQ Dealers | N/A | 5 selected dealers are invited to quote. | Competition among dealers ensures a fair block price. |
| Best RFQ Quoted Price | N/A | 0.0510 ETH | The RFQ price is higher than the top-of-book but better than the CLOB’s average fill. |
| Net Price Improvement vs CLOB | Reference (Net Price ▴ 0.0525 ETH) | +0.0015 ETH per contract (0.0525 – 0.0510) | The RFQ provides a quantifiable cost saving of 0.75 ETH on the total block. |
| Information Leakage Risk | High. The entire market sees the aggressive buying. | Low. Only 5 dealers are aware of the inquiry. | Preserving anonymity is a key strategic goal for institutional flow. |

![A cutaway view reveals the intricate core of an institutional-grade digital asset derivatives execution engine. The central price discovery aperture, flanked by pre-trade analytics layers, represents high-fidelity execution capabilities for multi-leg spread and private quotation via RFQ protocols for Bitcoin options](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-prime-os-rfq-protocol-engine-for-high-fidelity-execution-and-price-discovery-on-volatility-surface.jpg)

## System Integration and Technological Architecture

The effective operation of a dual-protocol market relies on a robust technological foundation. The components must be seamlessly integrated to provide traders with a single, coherent view of all available liquidity.

> The modern execution management system acts as the central nervous system, processing market data from all sources and enabling intelligent order routing.

The required technology stack includes several critical elements:

- **[Execution Management System](https://prime.greeks.live/area/execution-management-system/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (EMS)** ▴ This is the trader’s primary interface. It must aggregate data from both the CLOB and various RFQ streams, present them in an intuitive dashboard, and provide the functionality to route orders to either protocol.

- **FIX Protocol Connectivity** ▴ The Financial Information eXchange (FIX) protocol is the industry standard for communicating trade information. The EMS uses standard FIX messages (e.g. NewOrderSingle ) to send orders to the CLOB. For RFQ, it may use specific FIX messages ( QuoteRequest, QuoteResponse ) or a proprietary API provided by the trading venue.

- **Smart Order Router (SOR)** ▴ An SOR is an automated system that can be configured to break up large orders and route the child orders to the most advantageous venue. In a hybrid system, an SOR might be programmed to test the CLOB with a small portion of the order before initiating a larger RFQ for the remainder.

- **Post-Trade Analytics (TCA)** ▴ [Transaction Cost Analysis](https://prime.greeks.live/area/transaction-cost-analysis/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (TCA) systems are vital for evaluating execution quality. A TCA platform must be able to analyze fills from both CLOB and RFQ protocols, comparing execution prices against various benchmarks (e.g. arrival price, VWAP) to continually refine the firm’s execution strategy.

![Clear geometric prisms and flat planes interlock, symbolizing complex market microstructure and multi-leg spread strategies in institutional digital asset derivatives. A solid teal circle represents a discrete liquidity pool for private quotation via RFQ protocols, ensuring high-fidelity execution](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-price-discovery-and-high-fidelity-execution.jpg)

## References

- Bessembinder, Hendrik, and Kumar, Praveen. “Market Structure and the Cost of Raising Capital.” Monash University, Department of Banking and Finance, Working Paper, 2020.

- King, Michael R. and Dagfinn Rime. “The Market Microstructure Approach to Foreign Exchange ▴ Looking Back and Looking Forward.” Brandeis University, Working Paper, 2012.

- Fabozzi, Frank J. and Frank J. Jones. “Market Microstructure.” The Journal of Portfolio Management, vol. 48, no. 8, 2022, pp. 1-12.

- Hendershott, Terrence, and Ananth Madhavan. “Click or Call? The Adoption of Electronic Trading in US Corporate Bonds.” The Journal of Finance, vol. 70, no. 4, 2015, pp. 1683-1724.

- Cont, Rama, et al. “A Causal Analysis of the RfQ Process in Multi-Dealer-to-Client Platforms.” arXiv preprint arXiv:2306.12644, 2023.

- Gomber, Peter, et al. “Competition between exchanges ▴ A research agenda.” Journal of Financial Market Infrastructures, vol. 6, no. 2, 2017, pp. 1-36.

- Duffie, Darrell. “Dark Markets ▴ Asset Pricing and Information Transmission in a Centralized and Fragmented Environment.” Econometrica, vol. 80, no. 6, 2012, pp. 2517-2563.

- Madhavan, Ananth. “Market Microstructure ▴ A Survey.” Journal of Financial Markets, vol. 3, no. 3, 2000, pp. 205-258.

- O’Hara, Maureen. Market Microstructure Theory. Blackwell Publishers, 1995.

- Committee on the Global Financial System. “Electronic trading in fixed income markets.” BIS Papers No. 85, Bank for International Settlements, 2016.

![A sophisticated internal mechanism of a split sphere reveals the core of an institutional-grade RFQ protocol. Polished surfaces reflect intricate components, symbolizing high-fidelity execution and price discovery within digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-system.jpg)

## Reflection

Understanding the symbiotic architecture of lit books and RFQ protocols moves the conversation from “which is better” to a more potent inquiry ▴ “Is my execution framework optimized?” The coexistence of these two systems is a testament to the market’s adaptive response to the diverse needs of its participants. It acknowledges that liquidity is not a monolithic entity but a dynamic spectrum, from the smallest retail order to the largest institutional block. Each requires a purpose-built mechanism for efficient price discovery and risk transfer.

The true strategic advantage lies in building an operational system ▴ of technology, process, and human expertise ▴ that can fluidly navigate this spectrum. Viewing the CLOB and RFQ protocols as integrated modules within a larger execution operating system allows a firm to apply the right tool for every task. The challenge, therefore, is to look inward at your own operational design. Does it provide a holistic view of all liquidity sources?

Does it empower traders with the data and tools to make intelligent, instantaneous routing decisions? The architecture you build to interact with the market is as critical as the market’s architecture itself.

![A sleek, translucent fin-like structure emerges from a circular base against a dark background. This abstract form represents RFQ protocols and price discovery in digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-protocol.jpg)

## Glossary

<a href="https://prime.greeks.live/area/central-limit-order-book/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Two distinct components, beige and green, are securely joined by a polished blue metallic element. This embodies a high-fidelity RFQ protocol for institutional digital asset derivatives, ensuring atomic settlement and optimal liquidity](https://options.greeks.live/wp-content/uploads/2025/07/institutional-rfq-protocol-for-digital-asset-derivatives-high-fidelity-link.jpg)

## Central Limit Order Book

Meaning ▴ A Central Limit Order Book is a digital repository that aggregates all outstanding buy and sell orders for a specific financial instrument, organized by price level and time of entry. </a><a href="https://prime.greeks.live/area/request-for-quote/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Abstract geometric forms in dark blue, beige, and teal converge around a metallic gear, symbolizing a Prime RFQ for institutional digital asset derivatives. A sleek bar extends, representing high-fidelity execution and precise delta hedging within a multi-leg spread framework, optimizing capital efficiency via RFQ protocols](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-digital-asset-derivatives-rfq-execution-engine-architecture.jpg)

## Request for Quote

Meaning ▴ A Request for Quote, or RFQ, constitutes a formal communication initiated by a potential buyer or seller to solicit price quotations for a specified financial instrument or block of instruments from one or more liquidity providers. </a><a href="https://prime.greeks.live/area/liquidity-providers/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, multi-segmented sphere embodies a Principal's operational framework for institutional digital asset derivatives. Its transparent 'intelligence layer' signifies high-fidelity execution and price discovery via RFQ protocols](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-rfq-protocol-digital-asset-derivatives-execution-engine.jpg)

## Liquidity Providers

Meaning ▴ Liquidity Providers are market participants, typically institutional entities or sophisticated trading firms, that facilitate efficient market operations by continuously quoting bid and offer prices for financial instruments. </a><a href="https://prime.greeks.live/area/market-impact/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A central, blue-illuminated, crystalline structure symbolizes an institutional grade Crypto Derivatives OS facilitating RFQ protocol execution. Diagonal gradients represent aggregated liquidity and market microstructure converging for high-fidelity price discovery, optimizing multi-leg spread trading for digital asset options](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-engine-11.jpg)

## Market Impact

Meaning ▴ Market Impact refers to the observed change in an asset's price resulting from the execution of a trading order, primarily influenced by the order's size relative to available liquidity and prevailing market conditions. </a><a href="https://prime.greeks.live/area/information-leakage/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A precision-engineered system with a central gnomon-like structure and suspended sphere. This signifies high-fidelity execution for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/precision-engine-for-institutional-digital-asset-derivatives-rfq.jpg)

## Information Leakage

Meaning ▴ Information leakage denotes the unintended or unauthorized disclosure of sensitive trading data, often concerning an institution's pending orders, strategic positions, or execution intentions, to external market participants. </a><a href="https://prime.greeks.live/area/rfq-protocol/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Abstract system interface with translucent, layered funnels channels RFQ inquiries for liquidity aggregation. A precise metallic rod signifies high-fidelity execution and price discovery within market microstructure, representing Prime RFQ for digital asset derivatives with atomic settlement](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-derivatives-rfq-protocol-optimized-high-fidelity-execution-interface.jpg)

## Rfq Protocol

Meaning ▴ The Request for Quote (RFQ) Protocol defines a structured electronic communication method enabling a market participant to solicit firm, executable prices from multiple liquidity providers for a specified financial instrument and quantity. </a><a href="https://prime.greeks.live/area/lit-book/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Central, interlocked mechanical structures symbolize a sophisticated Crypto Derivatives OS driving institutional RFQ protocol. Surrounding blades represent diverse liquidity pools and multi-leg spread components](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-architecture-optimizing-high-fidelity-execution-across-diverse-liquidity-pools.jpg)

## Lit Book

Meaning ▴ A lit book represents an order book where all submitted orders, including their price and size, are publicly visible to all market participants in real-time. </a><a href="https://prime.greeks.live/area/price-discovery/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Abstract bisected spheres, reflective grey and textured teal, forming an infinity, symbolize institutional digital asset derivatives. Grey represents high-fidelity execution and market microstructure teal, deep liquidity pools and volatility surface data](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-rfq-protocols-for-digital-asset-derivatives-execution.jpg)

## Price Discovery

Meaning ▴ Price discovery is the continuous, dynamic process by which the market determines the fair value of an asset through the collective interaction of supply and demand. </a><a href="https://prime.greeks.live/area/order-book/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, conical precision instrument, with a vibrant mint-green tip and a robust grey base, represents the cutting-edge of institutional digital asset derivatives trading. Its sharp point signifies price discovery and best execution within complex market microstructure, powered by RFQ protocols for dark liquidity access and capital efficiency in atomic settlement](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-microstructure-price-discovery-optimization-prime-os-intelligence-layer.jpg)

## Order Book

Meaning ▴ An Order Book is a real-time electronic ledger detailing all outstanding buy and sell orders for a specific financial instrument, organized by price level and sorted by time priority within each level. </a><a href="https://prime.greeks.live/question/could-a-different-market-structure-achieve-both-price-improvement-and-efficient-price-discovery-simultaneously/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A multifaceted, luminous abstract structure against a dark void, symbolizing institutional digital asset derivatives market microstructure. Its sharp, reflective surfaces embody high-fidelity execution, RFQ protocol efficiency, and precise price discovery](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-trading-protocol-architecture-optimizing-high-fidelity-rfq-execution-and-latent-liquidity-discovery.jpg)

## Price Improvement

A system can achieve both goals by using private, competitive negotiation for execution and public post-trade reporting for discovery. </a><a href="https://prime.greeks.live/area/execution-management/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Abstract layers visualize institutional digital asset derivatives market microstructure. Teal dome signifies optimal price discovery, high-fidelity execution](https://options.greeks.live/wp-content/uploads/2025/08/high-fidelity-digital-asset-derivatives-rfq-execution-protocol-layers-and-market-microstructure-optimization.jpg)

## Execution Management

Meaning ▴ Execution Management defines the systematic, algorithmic orchestration of an order's lifecycle from initial submission through final fill across disparate liquidity venues within digital asset markets. </a><a href="https://prime.greeks.live/area/hybrid-market/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek pen hovers over a luminous circular structure with teal internal components, symbolizing precise RFQ initiation. This represents high-fidelity execution for institutional digital asset derivatives, optimizing market microstructure and achieving atomic settlement within a Prime RFQ liquidity pool](https://options.greeks.live/wp-content/uploads/2025/07/optimizing-digital-asset-derivatives-rfq-through-prime-os-precision.jpg)

## Hybrid Market

Meaning ▴ A Hybrid Market represents a composite architectural design, integrating the deterministic price discovery mechanisms of a continuous limit order book with the bilateral, principal-to-principal negotiation capabilities of a quote-driven system. </a><a href="https://prime.greeks.live/area/execution-management-system/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Abstract visualization of institutional RFQ protocol for digital asset derivatives. Translucent layers symbolize dark liquidity pools within complex market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-engine-6.jpg)

## Execution Management System

Meaning ▴ An Execution Management System (EMS) is a specialized software application engineered to facilitate and optimize the electronic execution of financial trades across diverse venues and asset classes. </a><a href="https://prime.greeks.live/area/transaction-cost-analysis/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sophisticated proprietary system module featuring precision-engineered components, symbolizing an institutional-grade Prime RFQ for digital asset derivatives. Its intricate design represents market microstructure analysis, RFQ protocol integration, and high-fidelity execution capabilities, optimizing liquidity aggregation and price discovery for block trades within a multi-leg spread environment](https://options.greeks.live/wp-content/uploads/2025/07/institutional-grade-proprietary-architecture-driving-high-fidelity-digital-asset-derivatives-execution-via-rfq-protocols-and-optimized-market-microstructure-dynamics.jpg)

## Transaction Cost Analysis

Meaning ▴ Transaction Cost Analysis (TCA) is the quantitative methodology for assessing the explicit and implicit costs incurred during the execution of financial trades. </a>

**Tags:** [RFQ Protocol](https://options.greeks.live/area/rfq-protocol/), [Information Leakage](https://options.greeks.live/area/information-leakage/), [Order Book](https://options.greeks.live/area/order-book/), [Request for Quote](https://options.greeks.live/area/request-for-quote/), [Hybrid Market Structure](https://options.greeks.live/area/hybrid-market-structure/), [Market Impact](https://options.greeks.live/area/market-impact/)	

## Discover More

- 
### [What Are the Primary FIX Message Types in an RFQ Workflow?](https://options.greeks.live/question/what-are-the-primary-fix-message-types-in-an-rfq-workflow/)
![A sphere, split and glowing internally, depicts an Institutional Digital Asset Derivatives platform. It represents a Principal's operational framework for RFQ protocols, driving optimal price discovery and high-fidelity execution. This system manages deep liquidity within intricate market microstructure, supporting multi-leg spread strategies.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-engine-1.jpg)

The RFQ workflow uses structured FIX messages like Quote Request (R) and Quote (S) to facilitate discreet, competitive price discovery for large trades.

- 
### [What Are the Primary Differences in Liquidity Sourcing between a Lit Order Book and an Anonymous RFQ System?](https://options.greeks.live/question/what-are-the-primary-differences-in-liquidity-sourcing-between-a-lit-order-book-and-an-anonymous-rfq-system/)
![A metallic Prime RFQ core, etched with algorithmic trading patterns, interfaces a precise high-fidelity execution blade. This blade engages liquidity pools and order book dynamics, symbolizing institutional grade RFQ protocol processing for digital asset derivatives price discovery.](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-digital-asset-derivatives-rfq-high-fidelity-execution-system.jpg)

A lit order book sources liquidity from a public auction; an RFQ system sources it via private, targeted negotiations to minimize impact.

- 
### [How Does the Request for Quote Protocol Benefit the Execution of Complex Multi-Leg Option Strategies?](https://options.greeks.live/question/how-does-the-request-for-quote-protocol-benefit-the-execution-of-complex-multi-leg-option-strategies/)
![A beige spool feeds dark, reflective material into an advanced processing unit, illuminated by a vibrant blue light. This depicts high-fidelity execution of institutional digital asset derivatives through a Prime RFQ, enabling precise price discovery for aggregated RFQ inquiries within complex market microstructure, ensuring atomic settlement.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-engine-prime-os-3.jpg)

RFQ protocols provide a discreet, competitive environment to execute complex options as a single unit, mitigating risk and improving price discovery.

- 
### [How Do Modern Execution Management Systems Handle Hybrid Orders That Utilize Both Rfq and Clob Protocols?](https://options.greeks.live/question/how-do-modern-execution-management-systems-handle-hybrid-orders-that-utilize-both-rfq-and-clob-protocols/)
![A sleek, futuristic institutional-grade instrument, representing high-fidelity execution of digital asset derivatives. Its sharp point signifies price discovery via RFQ protocols. The central Execution Management System EMS orchestrates multi-leg spread strategies, leveraging deep liquidity pools for block trade processing.](https://options.greeks.live/wp-content/uploads/2025/07/precision-rfq-execution-engine-for-institutional-digital-asset-derivatives.jpg)

A modern EMS orchestrates hybrid orders by dynamically routing them to CLOBs for anonymity or RFQs for size, minimizing impact.

- 
### [What Is the Difference between RFQ and a Lit Order Book?](https://options.greeks.live/question/what-is-the-difference-between-rfq-and-a-lit-order-book/)
![A translucent teal layer overlays a textured, lighter gray curved surface, intersected by a dark, sleek diagonal bar. This visually represents the market microstructure for institutional digital asset derivatives, where RFQ protocols facilitate high-fidelity execution. The transparency suggests price discovery across diverse liquidity pools, optimizing capital efficiency and minimizing slippage for block trades.](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-derivatives-rfq-protocols-driving-optimal-execution.jpg)

A lit order book offers continuous, transparent price discovery, while an RFQ provides discreet, negotiated liquidity for large trades.

- 
### [What Are the Primary Differences between a FIX-Based RFQ and a Central Limit Order Book Execution?](https://options.greeks.live/question/what-are-the-primary-differences-between-a-fix-based-rfq-and-a-central-limit-order-book-execution/)
![A dual-toned cylindrical component features a central transparent aperture revealing intricate metallic wiring. This signifies a core RFQ processing unit for Digital Asset Derivatives, enabling rapid Price Discovery and High-Fidelity Execution. It embodies an advanced Prime RFQ component, optimizing Liquidity Pool access and Market Microstructure via Algorithmic Trading.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-core-best-execution-prime-os.jpg)

A CLOB is a transparent, all-to-all auction; an RFQ is a discreet, targeted negotiation for executing trades.

- 
### [What Are the Key Differences between RFQ and Algorithmic Trading for Large Orders?](https://options.greeks.live/question/what-are-the-key-differences-between-rfq-and-algorithmic-trading-for-large-orders/)
![A central metallic bar, representing an RFQ block trade, pivots through translucent geometric planes symbolizing dynamic liquidity pools and multi-leg spread strategies. This illustrates a Principal's operational framework for high-fidelity execution and atomic settlement within a sophisticated Crypto Derivatives OS, optimizing private quotation workflows.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-facilitating-high-fidelity-price-discovery-and-optimal-capital-efficiency-within-advanced-market-microstructure.jpg)

RFQ sources block liquidity via private negotiation; algorithmic trading works large orders into public markets over time.

- 
### [What Are the Primary Determinants for Choosing an RFQ Protocol over a CLOB for Options Spreads?](https://options.greeks.live/question/what-are-the-primary-determinants-for-choosing-an-rfq-protocol-over-a-clob-for-options-spreads/)
![Central axis with angular, teal forms, radiating transparent lines. Abstractly represents an institutional grade Prime RFQ execution engine for digital asset derivatives, processing aggregated inquiries via RFQ protocols, ensuring high-fidelity execution and price discovery.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-high-fidelity-execution-market-microstructure-price-discovery-volatility-surface-analytics.jpg)

The choice between RFQ and CLOB for options spreads hinges on balancing the RFQ's execution certainty and information control against the CLOB's transparent price discovery.

- 
### [How Does the Number of Dealers in an Rfq Affect the Final Trade Price?](https://options.greeks.live/question/how-does-the-number-of-dealers-in-an-rfq-affect-the-final-trade-price/)
![A metallic, modular trading interface with black and grey circular elements, signifying distinct market microstructure components and liquidity pools. A precise, blue-cored probe diagonally integrates, representing an advanced RFQ engine for granular price discovery and atomic settlement of multi-leg spread strategies in institutional digital asset derivatives. This optimizes capital efficiency.](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-protocol-system-facilitating-high-fidelity-execution-price-discovery.jpg)

Increasing dealer count in an RFQ boosts competition but risks information leakage, requiring a strategic balance for optimal pricing.

---

## Raw Schema Data

```json
{
    "@context": "https://schema.org",
    "@type": "BreadcrumbList",
    "itemListElement": [
        {
            "@type": "ListItem",
            "position": 1,
            "name": "Home",
            "item": "https://options.greeks.live"
        },
        {
            "@type": "ListItem",
            "position": 2,
            "name": "Question",
            "item": "https://options.greeks.live/question/"
        },
        {
            "@type": "ListItem",
            "position": 3,
            "name": "Can a Lit Order Book and an RFQ Protocol Coexist for the Same Asset Class?",
            "item": "https://options.greeks.live/question/can-a-lit-order-book-and-an-rfq-protocol-coexist-for-the-same-asset-class/"
        }
    ]
}
```

```json
{
    "@context": "https://schema.org",
    "@type": "Organization",
    "@id": "https://greeks.live/#organization",
    "name": "Greeks.Live",
    "url": "https://greeks.live/",
    "description": "Greeks.live is the definitive toolkit for the professional options trader, dedicated to empowering our users with institutional-grade data, advanced analytics, and a comprehensive suite of trading tools designed to provide a decisive edge in the market. Every article and guide published under the Greeks.live name is a product of our deep commitment to data-driven analysis and our mission to support the global trading community.",
    "email": "support@greeks.live",
    "logo": {
        "@type": "ImageObject",
        "url": "https://options.greeks.live/wp-content/uploads/2025/07/Greeks.Live-Logo-Icon.svg"
    },
    "hasPart": [
        {
            "@type": "WebSite",
            "name": "About Us",
            "url": "https://about.greeks.live"
        },
        {
            "@type": "WebSite",
            "name": "App Download Page",
            "url": "https://about.greeks.live/#/download/basic_trade"
        },
        {
            "@type": "WebSite",
            "name": "Newcomers' Guide",
            "url": "https://twisty-sign-c8b.notion.site/Guide-for-Greeks-live-X-Deribit-Newbies-5a08a3052822427d800af6eaf3704c8d"
        },
        {
            "@type": "WebSite",
            "name": "Knowledge Base",
            "url": "https://linktr.ee/greeks.live"
        },
        {
            "@type": "WebSite",
            "name": "Option Terminology",
            "url": "https://greekslive.notion.site/88dfc00e7c584d4d8969b6302a79a12f?pvs=4"
        },
        {
            "@type": "WebSite",
            "name": "Terms of Service",
            "url": "https://greeks.live/#/tos"
        },
        {
            "@type": "WebSite",
            "name": "Disclaimer",
            "url": "https://greeks.live/#/disclaimer"
        }
    ],
    "sameAs": [
        "https://x.com/greekslive",
        "https://youtube.com/@greeks_live?si=-KjT0Lkw4WUCI0tD",
        "https://t.me/greekslive_notifications",
        "https://t.me/greekslive",
        "https://pinterest.com/greekslive/"
    ],
    "makesOffer": [
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "RFQ Platform",
                "url": "https://rfq.greeks.live",
                "description": "Execute institutional-grade block trades for crypto options and futures. This platform provides deep, over-the-counter (OTC) liquidity via a professional Request for Quote system.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Lending Tools",
                "url": "https://lend.greeks.live",
                "description": "Manage crypto lending and borrowing activities to earn yield or secure loans. This suite of tools helps users analyze interest rates and manage collateralized debt positions.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Data Lab",
                "url": "https://greeks.live/#/deribit/tools/datalab/BTC",
                "description": "Analyze historical and real-time options data with advanced metrics. This tool is designed for backtesting strategies and identifying market trends through comprehensive data visualization.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Profit & Loss Analysis (PnL)",
                "url": "https://greeks.live/#/deribit/tools/pnl_analysis",
                "description": "Track and analyze the Profit and Loss (PnL) of your options portfolio. This tool provides detailed performance metrics to help traders evaluate and refine their strategies.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Position Visualization",
                "url": "https://greeks.live/#/deribit/tools/pv/BTC",
                "description": "Visualize complex options positions and their corresponding risk profiles. This tool generates payoff diagrams to help traders intuitively understand potential profit, loss, and exposure.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Options Calculator",
                "url": "https://greeks.live/#/deribit/tools/calculator",
                "description": "Calculate the theoretical price and risk parameters ('the Greeks') of crypto options. An essential tool for pricing new trades and analyzing the sensitivity of existing positions.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Greeks.live Main Platform",
                "url": "https://greeks.live/",
                "description": "The central hub for the Greeks.live suite of professional cryptocurrency options and derivatives trading tools. Access analytics, manage positions, and explore the ecosystem.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Community Forum",
                "url": "https://t.greeks.live",
                "description": "Join the official Greeks.live community. Connect with other traders, share insights, and receive the latest updates directly from the team.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Greeks.live for Deribit",
                "url": "http://deribit.greeks.live",
                "description": "A dedicated interface for trading on the Deribit exchange. This platform leverages Greeks.live's advanced analytics and tools specifically for users of Deribit's options and futures markets.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Greeks.live for OKX",
                "url": "http://okx.greeks.live",
                "description": "A dedicated interface for trading on the OKX exchange. This platform integrates Greeks.live's powerful analytics with the OKX marketplace, focusing on its options and derivatives products.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "GLVS.AI Trading Platform",
                "url": "https://www.glvs.ai/",
                "description": "An AI-powered platform for automated crypto options trading. Leverage advanced algorithms and data-driven signals to develop and deploy sophisticated, hands-free trading strategies.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "API Testnet & Sandbox",
                "url": "https://test.greeks.live",
                "description": "A dedicated testnet environment for developers to test their API integrations and automated trading strategies. This sandbox allows for full functionality testing without risking real funds.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        }
    ],
    "subOrganization": [
        {
            "@type": "Organization",
            "name": "GreeksLive HK Co., Limited",
            "email": "support@greeks.live",
            "telephone": "+852-56418949",
            "address": {
                "@type": "PostalAddress",
                "streetAddress": "Unit 11, 27/F, K. Wah Centre, 191 Java Road",
                "addressLocality": "Hong Kong",
                "addressRegion": "North Point",
                "addressCountry": "CN",
                "postalCode": "0000"
            },
            "geo": {
                "@type": "GeoCoordinates",
                "latitude": "22.2932357",
                "longitude": "114.2022026"
            },
            "image": "https://options.greeks.live/wp-content/uploads/2025/08/Wah-Centre-Hong-Kong.jpg"
        }
    ]
}
```

```json
{
    "@context": "https://schema.org",
    "@type": "Article",
    "mainEntityOfPage": {
        "@type": "WebPage",
        "@id": "https://options.greeks.live/question/can-a-lit-order-book-and-an-rfq-protocol-coexist-for-the-same-asset-class/"
    },
    "headline": "Can a Lit Order Book and an RFQ Protocol Coexist for the Same Asset Class? \u25b4 Question",
    "description": "A lit book and an RFQ protocol form a symbiotic architecture, enabling efficient price discovery for all trade sizes. \u25b4 Question",
    "url": "https://options.greeks.live/question/can-a-lit-order-book-and-an-rfq-protocol-coexist-for-the-same-asset-class/",
    "datePublished": "2025-08-06T10:40:07+00:00",
    "dateModified": "2025-08-06T10:40:18+00:00",
    "articleSection": [
        "Question"
    ],
    "author": {
        "@id": "https://greeks.live/#organization"
    },
    "publisher": {
        "@id": "https://greeks.live/#organization"
    },
    "image": {
        "@type": "ImageObject",
        "url": "https://options.greeks.live/wp-content/uploads/2025/07/institutional-crypto-derivatives-execution-rfq-price-discovery-core.jpg",
        "caption": "A central, dynamically split circular form bisected by a precise diagonal element symbolizes the intricate mechanics of institutional digital asset derivatives trading. It illustrates an optimized RFQ protocol for block trade execution, accessing dark liquidity for price discovery and atomic settlement. This visual metaphor encapsulates a Prime RFQ enabling multi-leg spread strategies with capital efficiency and best execution, managing counterparty risk via private quotation and algorithmic trading."
    },
    "keywords": [
        "Algorithmic Trading",
        "Block Trading",
        "Central Limit Order Book",
        "Execution Management",
        "Execution Management System",
        "Hybrid Market",
        "Hybrid Market Structure",
        "Information Leakage",
        "Institutional Trading",
        "Limit Order Book",
        "Liquidity Providers",
        "Lit Book",
        "Market Impact",
        "Market Microstructure",
        "Market Structure",
        "Options Block Liquidity",
        "Order Book",
        "Price Discovery",
        "Request for Quote",
        "RFQ Protocol",
        "Transaction Cost Analysis"
    ]
}
```

```json
{
    "@context": "https://schema.org",
    "@type": "WebSite",
    "url": "https://options.greeks.live/",
    "potentialAction": {
        "@type": "SearchAction",
        "target": "https://options.greeks.live/?s=search_term_string",
        "query-input": "required name=search_term_string"
    }
}
```

```json
{
    "@context": "https://schema.org",
    "@type": "FAQPage",
    "mainEntity": [
        {
            "@type": "Question",
            "name": "How Does Liquidity And Anonymity Dictate Protocol Choice?",
            "acceptedAnswer": {
                "@type": "Answer",
                "text": "The choice of execution protocol is a function of the trade's specific characteristics and the institution's strategic objectives. Anonymity and liquidity are the core variables in this calculation. The CLOB offers complete pre-trade anonymity to the entire market, while the RFQ protocol offers targeted disclosure to a select group of counterparties. The strategic implications of this are profound and dictate how different types of flow should be handled."
            }
        }
    ]
}
```


---

**Original URL:** https://options.greeks.live/question/can-a-lit-order-book-and-an-rfq-protocol-coexist-for-the-same-asset-class/
