# What Are the Best Practices for Measuring Information Leakage When Selecting RFQ Counterparties? ▴ Question

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

---

![Segmented circular object, representing diverse digital asset derivatives liquidity pools, rests on institutional-grade mechanism. Central ring signifies robust price discovery a diagonal line depicts RFQ inquiry pathway, ensuring high-fidelity execution via Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-for-high-fidelity-execution.jpg)

![A central precision-engineered RFQ engine orchestrates high-fidelity execution across interconnected market microstructure. This Prime RFQ node facilitates multi-leg spread pricing and liquidity aggregation for institutional digital asset derivatives, minimizing slippage](https://options.greeks.live/wp-content/uploads/2025/08/high-fidelity-rfq-execution-for-institutional-crypto-derivatives.jpg)

## Concept

The act of soliciting a price for a significant block of securities through a Request for Quote ([RFQ](https://prime.greeks.live/area/rfq/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite)) protocol is a precision-engineered process. It initiates a complex chain of events where the very request for liquidity can degrade the quality of that same liquidity. This degradation is known as [information leakage](https://prime.greeks.live/area/information-leakage/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite).

It refers to the dissemination of intelligence related to a trading intention, which, when detected by other market participants, results in adverse price movements before the full execution of the [parent order](https://prime.greeks.live/area/parent-order/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). The core of the challenge resides in a fundamental paradox ▴ to find a counterparty, one must signal intent, yet that very signal arms potential counterparties, both successful and unsuccessful, with predictive data about imminent market flow.

A frequent mischaracterization in post-trade analysis is the conflation of information leakage with [adverse selection](https://prime.greeks.live/area/adverse-selection/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). The two concepts are distinct and arise from different causal mechanisms. Adverse selection occurs when a trader’s passive order is filled immediately before a favorable price movement; the fill itself is a consequence of being on the wrong side of an imminent price change initiated by others. Information leakage, conversely, is the cause of future price movements.

It is the impact created by one’s own order, a consequence of other market participants reacting to the intelligence that your order exists. A losing dealer in an [RFQ auction](https://prime.greeks.live/area/rfq-auction/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), now aware of a large institutional desire to transact, can trade ahead of the winning dealer’s subsequent hedging activity, a behavior often termed [front-running](https://prime.greeks.live/area/front-running/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). This dynamic transforms the losing bidder from a simple competitor into an informed adversary.

> Understanding information leakage requires viewing it not as a passive market risk, but as an active, reflexive consequence of the execution process itself.

The mechanics of this leakage are subtle but powerful. When a client requests a quote from multiple dealers, each dealer, whether they win the auction or not, updates their understanding of market imbalances. A request to price a large buy order for an asset, for instance, signals a significant demand that is about to be satisfied. A dealer who loses the auction is now in possession of valuable, non-public information about an imminent block transaction.

This dealer can then trade in the underlying market in the same direction as the client’s original intent, anticipating the price impact that the winning dealer will create when they hedge their newly acquired position. This activity by the losing dealer exacerbates the price impact, increasing the execution cost for the winner, a cost that is ultimately passed back to the client through less aggressive initial quotes. The very act of seeking competitive prices, therefore, can systematically increase the final transaction cost.

![A sharp, teal-tipped component, emblematic of high-fidelity execution and alpha generation, emerges from a robust, textured base representing the Principal's operational framework. Water droplets on the dark blue surface suggest a liquidity pool within a dark pool, highlighting latent liquidity and atomic settlement via RFQ protocols for institutional digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-execution-protocol-for-institutional-digital-asset-options.jpg)

## The Anatomy of a Leak

Information leakage in the RFQ process is not a monolithic event but a cascade of signals. The severity and impact of the leak are functions of several variables, each of which must be managed as part of a coherent execution strategy. The primary vectors for leakage include:

- **Number of Counterparties** ▴ Each additional dealer included in an RFQ is another potential source of leakage. While a broader auction may appear to increase competition, it also widens the circle of participants who are aware of the impending trade.

- **Counterparty Characteristics** ▴ The nature of the dealers themselves matters. Some may have robust internal controls to prevent the leakage of client data, while others may have business models that implicitly or explicitly benefit from trading on the basis of client flow information.

- **Signal Specificity** ▴ The amount of detail revealed in the RFQ itself is a critical factor. A request for a one-sided market (e.g. “quote for 1,000 units to buy”) is a complete disclosure of intent. A request for a two-sided market (“make a market in 1,000 units”) partially obscures the direction, forcing dealers to price both sides and thereby reducing the certainty of the signal. 

- **[Market Conditions](https://prime.greeks.live/area/market-conditions/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite)** ▴ The impact of a leak is amplified in less liquid environments. In a thin market, even a small amount of front-running activity by a losing bidder can have a disproportionate effect on the price, leading to significantly higher costs for the institutional client.

Effectively measuring and managing this phenomenon requires a framework that moves beyond simplistic post-trade metrics. It demands a pre-trade and in-flight analytical capability that can model the trade-offs inherent in the [counterparty selection](https://prime.greeks.live/area/counterparty-selection/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) process. The objective is to find the optimal balance between the price improvement from competition and the cost increase from information leakage, a balance that is unique to every trade.

![A transparent, multi-faceted component, indicative of an RFQ engine's intricate market microstructure logic, emerges from complex FIX Protocol connectivity. Its sharp edges signify high-fidelity execution and price discovery precision for institutional digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-optimized-for-best-execution.jpg)

![A sleek, spherical, off-white device with a glowing cyan lens symbolizes an Institutional Grade Prime RFQ Intelligence Layer. It drives High-Fidelity Execution of Digital Asset Derivatives via RFQ Protocols, enabling Optimal Liquidity Aggregation and Price Discovery for Market Microstructure Analysis](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-optimal-execution-1.jpg)

## Strategy

A robust strategy for mitigating information leakage during RFQ counterparty selection is built upon two foundational pillars ▴ [information design](https://prime.greeks.live/area/information-design/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) and the management of [endogenous search](https://prime.greeks.live/question/what-are-the-key-differences-between-lexical-search-and-semantic-search-in-rfp-contexts/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) frictions. These concepts, grounded in microeconomic theory, provide a systematic framework for structuring the auction process to minimize signaling while optimizing for competitive pricing. The overarching goal is to control what potential counterparties know and, just as importantly, what they do not know.

![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)

## Information Design as a Strategic Mandate

The first strategic consideration is the design of the information conveyed within the RFQ itself. An institutional trader has complete control over the signal sent to the market. The critical question is what information structure elicits the most favorable outcome.

A formal analysis of this problem reveals a powerful and somewhat counterintuitive conclusion ▴ the optimal strategy is to provide no information about the direction of the trade at the bidding stage. This principle of “no disclosure” is the most effective defense against the front-running behavior of losing bidders.

When a client requests a one-sided quote (e.g. “price for a sale of 500 BTC”), the direction of the trade is fully revealed. A losing dealer can then, with high confidence, trade in the same direction, anticipating the price pressure from the winning dealer’s hedging activities. This front-running increases the winner’s expected hedging costs, which in turn leads all dealers to submit less aggressive initial bids. The result is a higher procurement cost for the client.

Contrast this with a “no disclosure” policy, operationalized by requesting a two-sided market. By asking dealers to provide both a bid and an ask, the client forces them to price both possibilities. A losing dealer, uncertain of the trade’s true direction, must moderate their subsequent trading.

Their ability to front-run is diminished because trading aggressively in the wrong direction would be costly. This induced uncertainty has two beneficial effects for the client:

- **Reduced Trading Costs for the Winner** ▴ With less front-running from the loser, the winning dealer faces a more benign hedging environment, lowering their execution costs.

- **Reduced Opportunity Cost for the Winner** ▴ The potential profit a dealer could make from losing the auction (by front-running) is a component of their bid. By reducing the profitability of front-running, the “no disclosure” policy lowers this opportunity cost.

Both effects compel dealers to submit tighter, more competitive quotes, directly benefiting the client. The strategic mandate is therefore clear ▴ disguise intent wherever possible by using two-sided RFQs as the default protocol.

![Precision-engineered system components in beige, teal, and metallic converge at a vibrant blue interface. This symbolizes a critical RFQ protocol junction within an institutional Prime RFQ, facilitating high-fidelity execution and atomic settlement for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/principal-rfq-connectivity-layer-for-digital-asset-derivatives-execution.jpg)

## Navigating Endogenous Search Frictions

The second pillar of the strategy involves determining the optimal number of counterparties to include in the RFQ. Conventional wisdom suggests that more bidders lead to more competition and better prices. In the context of RFQs, this is an incomplete perspective.

The risk of information leakage acts as an “[endogenous search friction](https://prime.greeks.live/area/endogenous-search-friction/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite),” a cost that arises naturally from the search process itself. It is not an external barrier but a direct consequence of interacting with market participants.

> The optimal number of counterparties is reached at the point where the marginal benefit of increased competition is precisely offset by the marginal cost of increased information leakage.

This creates a trade-off that must be actively managed. Contacting an additional dealer has both a positive and a negative effect:

- **The Competition Effect (Positive)** ▴ A larger auction pool increases the probability of finding a “natural” counterparty (one with an opposing inventory position who can internalize the trade) and intensifies bidding pressure.

- **The Front-Running Effect (Negative)** ▴ Each additional dealer is another party that, upon losing the auction, can leverage the leaked information to trade ahead of the winner, increasing costs for all.

The optimal strategy, therefore, is not always to contact every available dealer. When the risk of front-running is high, it can be advantageous to restrict the auction to a smaller, more trusted set of counterparties, or even a single dealer. The conditions that favor a smaller auction include:

- **High Dealer Inventory Correlation** ▴ If all dealers are likely to have similar positions (e.g. all are net long an asset that is difficult to short), the benefit of searching for a natural counterparty is low, while the risk of coordinated front-running is high. 

- **Asymmetric Client Needs** ▴ If a client is known to be a persistent seller (e.g. a venture capital fund distributing shares), dealers can infer direction even from a two-sided quote, increasing the front-running risk.

A sophisticated trading desk will develop a dynamic counterparty selection strategy. This involves classifying counterparties based on historical performance and trust, and adjusting the size of the RFQ auction based on the specific characteristics of the asset and the prevailing market conditions. The strategy moves from a static “always poll five dealers” approach to a dynamic, evidence-based protocol that calibrates the auction size to manage the endogenous [search friction](https://prime.greeks.live/area/search-friction/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) effectively.

![A sleek green probe, symbolizing a precise RFQ protocol, engages a dark, textured execution venue, representing a digital asset derivatives liquidity pool. This signifies institutional-grade price discovery and high-fidelity execution through an advanced Prime RFQ, minimizing slippage and optimizing capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-derivatives-rfq-protocol-integration-for-high-fidelity-execution-and-institutional-liquidity-aggregation-on-prime-os.jpg)

![A futuristic, intricate central mechanism with luminous blue accents represents a Prime RFQ for Digital Asset Derivatives Price Discovery. Four sleek, curved panels extending outwards signify diverse Liquidity Pools and RFQ channels for Block Trade High-Fidelity Execution, minimizing Slippage and Latency in Market Microstructure operations](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-platform-2.jpg)

## Execution

The execution of a strategy to manage information leakage requires a disciplined, data-driven operational framework. This framework translates the strategic principles of information design and endogenous search friction into a set of measurable protocols and tactical controls. It involves moving from abstract concepts to concrete quantitative analysis and procedural rigor. The objective is to build a system that quantifies leakage, optimizes counterparty selection based on empirical evidence, and deploys specific order-level tactics to protect execution quality.

![A precision metallic instrument with a black sphere rests on a multi-layered platform. This symbolizes institutional digital asset derivatives market microstructure, enabling high-fidelity execution and optimal price discovery across diverse liquidity pools](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-rfq-protocol-engine-component-digital-asset-derivatives-market-microstructure.jpg)

## A Quantitative Framework for Leakage Measurement

The first step in execution is measurement. Without a reliable way to quantify information leakage, any mitigation strategy is merely guesswork. A best practice is to establish a parent-order level analysis framework that distinguishes leakage from other forms of transaction costs. Standard post-trade benchmarks like implementation shortfall or price reversion after a fill are insufficient, as they often conflate leakage with adverse selection or general market impact.

A more robust approach involves creating a controlled measurement system. This can be achieved by analyzing the price behavior of an asset in the moments immediately following the dissemination of an RFQ, but before the order is executed. The core idea is to measure the “others’ impact” ▴ the price movement caused by participants who are not the executing broker but who are reacting to the leaked information of the order. A practical methodology involves the following steps:

- **Establish a Baseline** ▴ For a given asset, establish a baseline of normal price volatility and order book dynamics during periods when no institutional orders are being worked.

- **Timestamp RFQ Events** ▴ Precisively timestamp the moment an RFQ is sent to a specific group of counterparties.

- **Measure Pre-Execution Drift** ▴ In the seconds and minutes following the RFQ, measure the drift in the mid-price and the skewing of the order book (i.e. build-up of liquidity on the passive side) in the direction of the trade.

- **Attribute the Drift** ▴ Compare this measured drift against the established baseline. The excess, unexplained drift can be attributed to information leakage.

This analysis allows for a more granular understanding of which counterparties and which market conditions contribute most to leakage. Over time, this data builds a proprietary scorecard for counterparty performance.

![A robust circular Prime RFQ component with horizontal data channels, radiating a turquoise glow signifying price discovery. This institutional-grade RFQ system facilitates high-fidelity execution for digital asset derivatives, optimizing market microstructure and capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/institutional-rfq-engine-for-digital-asset-derivatives-execution.jpg)

## Table 1 ▴ Contrasting Leakage Measurement Methodologies

| Methodology | Description | Primary Metric | Limitation |
| --- | --- | --- | --- |

![Interconnected translucent rings with glowing internal mechanisms symbolize an RFQ protocol engine. This Principal's Operational Framework ensures High-Fidelity Execution and precise Price Discovery for Institutional Digital Asset Derivatives, optimizing Market Microstructure and Capital Efficiency via Atomic Settlement](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-high-fidelity-execution.jpg)

## Table 2 ▴ Quantifying the Financial Impact of Leakage

The financial cost of unmanaged information leakage can be substantial. A study by BlackRock found the impact from multi-dealer ETF RFQs could be as high as 0.73%, or 73 basis points. The following table illustrates this potential impact on orders of varying sizes.

| Parent Order Notional | Leakage Cost (20 bps) | Leakage Cost (50 bps) | Leakage Cost (73 bps) |
| --- | --- | --- | --- |

![A beige Prime RFQ chassis features a glowing teal transparent panel, symbolizing an Intelligence Layer for high-fidelity execution. A clear tube, representing a private quotation channel, holds a precise instrument for algorithmic trading of digital asset derivatives, ensuring atomic settlement](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-rfq-digital-asset-derivatives-high-fidelity-execution-system-interface.jpg)

## Tactical Controls and Order Management

Beyond measurement and counterparty selection, specific tactical controls can be deployed at the order level to further mitigate leakage risk. These are not substitutes for a sound strategy but are complementary tools in the execution process.

- **Randomization and Algo Wheels** ▴ For child orders that are worked algorithmically after a block is sourced via RFQ, using an “[algo wheel](https://prime.greeks.live/area/algo-wheel/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite)” to randomize the choice of broker algorithm can be effective. This makes the trading footprint less predictable, frustrating the efforts of participants trying to profile the execution. 

- **Minimum Quantity (MQ) Orders** ▴ Using a minimum fill size can prevent being “pinged” by very small orders designed to detect liquidity. However, this tool requires careful calibration. Research from IEX shows that while setting a minimum of 100 or 200 shares can improve performance by filtering out noise, setting excessively high MQs provides little additional benefit against leakage and can significantly increase the risk of missing liquidity from natural counterparties. The relationship is non-linear, and an optimal MQ threshold exists that balances leakage protection with liquidity capture.

- **Information-Rich Protocols** ▴ In some cases, a trader may tolerate a certain amount of leakage in exchange for immediacy or access to a specific pool of liquidity. The decision to use a more information-rich protocol should be a conscious one, based on the urgency of the trade and the specific investment mandate, rather than a default setting. 

> Effective execution marries a strategic, data-driven counterparty selection process with the disciplined application of tactical order controls.

Ultimately, the best practices for measuring and managing information leakage form a continuous, iterative loop. Data from execution is fed back into the counterparty scoring system. The scoring system informs the strategy for structuring the next RFQ auction.

Tactical controls are adjusted based on real-time market conditions. This creates a learning system, an operational framework that constantly refines its approach to achieve its ultimate purpose ▴ securing high-fidelity execution with maximum capital efficiency.

![A transparent glass bar, representing high-fidelity execution and precise RFQ protocols, extends over a white sphere symbolizing a deep liquidity pool for institutional digital asset derivatives. A small glass bead signifies atomic settlement within the granular market microstructure, supported by robust Prime RFQ infrastructure ensuring optimal price discovery and minimal slippage](https://options.greeks.live/wp-content/uploads/2025/07/institutional-grade-digital-asset-derivatives-rfq-execution-prime-os-intelligence-layer-facilitating-optimal-price-discovery-and-best-execution.jpg)

## References

- Baldauf, Markus, and Joshua Mollner. “Principal Trading Procurement ▴ Competition and Information Leakage.” 2021.

- Carter, Lucy. “Information leakage.” Global Trading, 20 Feb. 2025.

- Polidore, Ben, et al. “Put A Lid On It – Controlled measurement of information leakage in dark pools.” The TRADE, 2015.

- Dewey, Tori, and Sean Spector. “Minimum Quantities Part II ▴ Information Leakage.” IEX, 19 Nov. 2020.

- Hasbrouck, Joel. “Empirical market microstructure ▴ The institutions, economics, and econometrics of securities trading.” Oxford University Press, 2007.

- O’Hara, Maureen. “Market microstructure theory.” Blackwell, 1995.

- CFTC. “Core Principles and Other Requirements for Swap Execution Facilities.” Federal Register, vol. 78, no. 107, 4 June 2013.

![A dark blue sphere, representing a deep institutional liquidity pool, integrates a central RFQ engine. This system processes aggregated inquiries for Digital Asset Derivatives, including Bitcoin Options and Ethereum Futures, enabling high-fidelity execution](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-for-optimized-liquidity-aggregation.jpg)

## Reflection

![The central teal core signifies a Principal's Prime RFQ, routing RFQ protocols across modular arms. Metallic levers denote precise control over multi-leg spread execution and block trades](https://options.greeks.live/wp-content/uploads/2025/07/principals-prime-os-rfq-system-institutional-digital-asset-derivatives.jpg)

## From Measurement to Systemic Control

The principles and practices detailed here provide a robust system for quantifying and controlling information leakage. They shift the operational posture from a reactive, post-trade analysis of costs to a proactive, pre-trade structuring of the entire liquidity sourcing event. The framework moves beyond a simple checklist of actions to a deeper understanding of the market’s underlying mechanics. The true advantage is not found in adopting any single tactic, but in architecting a holistic execution system where strategy informs measurement, and measurement refines strategy.

Consider your own operational framework. How are you currently measuring the cost of your search for liquidity? Is your counterparty selection process static, or does it adapt to the specific conditions of each trade?

The data to answer these questions exists within your own order flow. The challenge and the opportunity lie in building the internal capability to transform that data into a decisive operational edge, ensuring that the process of seeking liquidity does not become the primary source of its degradation.

![A central multi-quadrant disc signifies diverse liquidity pools and portfolio margin. A dynamic diagonal band, an RFQ protocol or private quotation channel, bisects it, enabling high-fidelity execution for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-rfq-protocols-for-institutional-digital-asset-derivatives.jpg)

## Glossary

<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 sleek, metallic, X-shaped object with a central circular core floats above mountains at dusk. It signifies an institutional-grade Prime RFQ for digital asset derivatives, enabling high-fidelity execution via RFQ protocols, optimizing price discovery and capital efficiency across dark pools for best execution](https://options.greeks.live/wp-content/uploads/2025/07/advanced-principal-rfq-protocol-architecture-for-institutional-digital-asset-derivatives-optimal-price-discovery-and-execution.jpg)

## Information Leakage

Meaning ▴ Information leakage, in the realm of crypto investing and institutional options trading, refers to the inadvertent or intentional disclosure of sensitive trading intent or order details to other market participants before or during trade execution. </a><a href="https://prime.greeks.live/area/rfq/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A polished, dark teal institutional-grade mechanism reveals an internal beige interface, precisely deploying a metallic, arrow-etched component. This signifies high-fidelity execution within an RFQ protocol, enabling atomic settlement and optimized price discovery for institutional digital asset derivatives and multi-leg spreads, ensuring minimal slippage and robust capital efficiency](https://options.greeks.live/wp-content/uploads/2025/08/quantitative-finance-driven-rfq-workflow-for-best-execution-in-digital-assets.jpg)

## Rfq

Meaning ▴ A Request for Quote (RFQ), in the domain of institutional crypto trading, is a structured communication protocol enabling a prospective buyer or seller to solicit firm, executable price proposals for a specific quantity of a digital asset or derivative from one or more liquidity providers. </a><a href="https://prime.greeks.live/area/parent-order/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A precision-engineered, multi-layered system architecture for institutional digital asset derivatives. Its modular components signify robust RFQ protocol integration, facilitating efficient price discovery and high-fidelity execution for complex multi-leg spreads, minimizing slippage and adverse selection in market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-institutional-digital-asset-derivatives-rfq-execution-platform.jpg)

## Parent Order

Meaning ▴ A Parent Order, within the architecture of algorithmic trading systems, refers to a large, overarching trade instruction initiated by an institutional investor or firm that is subsequently disaggregated and managed by an execution algorithm into numerous smaller, more manageable "child orders. </a><a href="https://prime.greeks.live/area/adverse-selection/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A central crystalline RFQ engine processes complex algorithmic trading signals, linking to a deep liquidity pool. It projects precise, high-fidelity execution for institutional digital asset derivatives, optimizing price discovery and mitigating adverse selection](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-rfq-protocols-high-fidelity-digital-asset-derivatives-execution.jpg)

## Adverse Selection

Meaning ▴ Adverse selection in the context of crypto RFQ and institutional options trading describes a market inefficiency where one party to a transaction possesses superior, private information, leading to the uninformed party accepting a less favorable price or assuming disproportionate risk. </a><a href="https://prime.greeks.live/area/front-running/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Transparent conduits and metallic components abstractly depict institutional digital asset derivatives trading. Symbolizing cross-protocol RFQ execution, multi-leg spreads, and high-fidelity atomic settlement across aggregated liquidity pools, it reflects prime brokerage infrastructure](https://options.greeks.live/wp-content/uploads/2025/07/cross-protocol-rfq-execution-digital-asset-derivatives-microstructure-system.jpg)

## Front-Running

Meaning ▴ Front-running, in crypto investing and trading, is the unethical and often illegal practice where a market participant, possessing prior knowledge of a pending large order that will likely move the market, executes a trade for their own benefit before the larger order. </a><a href="https://prime.greeks.live/area/rfq-auction/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, futuristic apparatus featuring a central spherical processing unit flanked by dual reflective surfaces and illuminated data conduits. This system visually represents an advanced RFQ protocol engine facilitating high-fidelity execution and liquidity aggregation for institutional digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-digital-asset-options-rfq-liquidity-aggregation-interface.jpg)

## Rfq Auction

Meaning ▴ An RFQ Auction, or Request for Quote Auction, represents a specialized electronic trading mechanism, predominantly employed within institutional finance for executing illiquid or substantial block transactions, where a prospective buyer or seller simultaneously solicits price quotes from multiple qualified liquidity providers. </a><a href="https://prime.greeks.live/area/market-conditions/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A stylized spherical system, symbolizing an institutional digital asset derivative, rests on a robust Prime RFQ base. Its dark core represents a deep liquidity pool for algorithmic trading](https://options.greeks.live/wp-content/uploads/2025/08/institutional-grade-rfq-protocol-engine-facilitating-best-execution-and-liquidity-aggregation-for-digital-asset-derivatives.jpg)

## Market Conditions

Meaning ▴ Market Conditions, in the context of crypto, encompass the multifaceted environmental factors influencing the trading and valuation of digital assets at any given time, including prevailing price levels, volatility, liquidity depth, trading volume, and investor sentiment. </a><a href="https://prime.greeks.live/area/counterparty-selection/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A modular, institutional-grade device with a central data aggregation interface and metallic spigot. This Prime RFQ represents a robust RFQ protocol engine, enabling high-fidelity execution for institutional digital asset derivatives, optimizing capital efficiency and best execution](https://options.greeks.live/wp-content/uploads/2025/08/principals-institutional-digital-asset-derivatives-prime-os-for-optimized-rfq-protocol-best-execution-system.jpg)

## Counterparty Selection

Meaning ▴ Counterparty Selection, within the architecture of institutional crypto trading, refers to the systematic process of identifying, evaluating, and engaging with reliable and reputable entities for executing trades, providing liquidity, or facilitating settlement. </a><a href="https://prime.greeks.live/area/information-design/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Polished, intersecting geometric blades converge around a central metallic hub. This abstract visual represents an institutional RFQ protocol engine, enabling high-fidelity execution of digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-high-fidelity-execution-market-microstructure.jpg)

## Information Design

Meaning ▴ Information design, in the context of crypto systems architecture, refers to the systematic organization, structuring, and presentation of data to optimize clarity, usability, and comprehension for specific user groups or system processes. </a><a href="https://prime.greeks.live/question/what-are-the-key-differences-between-lexical-search-and-semantic-search-in-rfp-contexts/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A central institutional Prime RFQ, showcasing intricate market microstructure, interacts with a translucent digital asset derivatives liquidity pool. An algorithmic trading engine, embodying a high-fidelity RFQ protocol, navigates this for precise multi-leg spread execution and optimal price discovery](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-rfq-protocol-navigating-digital-asset-derivative-liquidity.jpg)

## Endogenous Search

Lexical search finds keywords; semantic search understands intent, transforming RFP analysis from word-matching to concept evaluation. </a><a href="https://prime.greeks.live/area/endogenous-search-friction/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Precisely engineered circular beige, grey, and blue modules stack tilted on a dark base. A central aperture signifies the core RFQ protocol engine](https://options.greeks.live/wp-content/uploads/2025/07/core-prime-os-rfq-engine-digital-asset-derivatives-trading-system-execution.jpg)

## Endogenous Search Friction

Meaning ▴ Endogenous search friction refers to market inefficiencies arising from the costs or difficulties that participants incur when actively seeking suitable trading counterparties or optimal prices within a market. </a><a href="https://prime.greeks.live/area/search-friction/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Precision instrument featuring a sharp, translucent teal blade from a geared base on a textured platform. This symbolizes high-fidelity execution of institutional digital asset derivatives via RFQ protocols, optimizing market microstructure for capital efficiency and algorithmic trading on a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/precision-engineered-algorithmic-execution-infrastructure-for-institutional-digital-asset-derivatives-request-for-quote-protocols-optimal-liquidity.jpg)

## Search Friction

Meaning ▴ Search Friction refers to the impediments or costs associated with locating suitable counterparties, desired assets, or optimal trading opportunities within a market. </a><a href="https://prime.greeks.live/area/algo-wheel/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![An abstract system visualizes an institutional RFQ protocol. A central translucent sphere represents the Prime RFQ intelligence layer, aggregating liquidity for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-maximizing-liquidity.jpg)

## Algo Wheel

Meaning ▴ An Algo Wheel is a systematic routing and allocation system that distributes an order across a predefined set of algorithmic trading strategies or execution venues. </a>

**Tags:** [Information Leakage](https://options.greeks.live/area/information-leakage/), [Information Design](https://options.greeks.live/area/information-design/), [Parent Order](https://options.greeks.live/area/parent-order/), [Market Conditions](https://options.greeks.live/area/market-conditions/), [Two-Sided Quotes](https://options.greeks.live/area/two-sided-quotes/), [Algorithmic Trading](https://options.greeks.live/area/algorithmic-trading/)	

## Discover More

- 
### [How Should RFQ Panel Composition Change between Volatile and Stable Market Regimes?](https://options.greeks.live/question/how-should-rfq-panel-composition-change-between-volatile-and-stable-market-regimes/)
![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)

RFQ panel design is a dynamic system for controlling information leakage and optimizing execution, calibrated to market volatility.

- 
### [How Does a Systematic RFQ Protocol Mitigate Information Leakage Risk?](https://options.greeks.live/question/how-does-a-systematic-rfq-protocol-mitigate-information-leakage-risk/)
![A transparent glass sphere rests precisely on a metallic rod, connecting a grey structural element and a dark teal engineered module with a clear lens. This symbolizes atomic settlement of digital asset derivatives via private quotation within a Prime RFQ, showcasing high-fidelity execution and capital efficiency for RFQ protocols and liquidity aggregation.](https://options.greeks.live/wp-content/uploads/2025/07/architecting-high-fidelity-execution-for-institutional-digital-asset-derivatives-rfq-protocols-and-systemic-liquidity-aggregation.jpg)

A systematic RFQ protocol mitigates information leakage by converting public order broadcasts into private, controlled negotiations.

- 
### [What Are the Primary Sources of Information Leakage in RFQ Trades?](https://options.greeks.live/question/what-are-the-primary-sources-of-information-leakage-in-rfq-trades/)
![A translucent teal triangle, an RFQ protocol interface with target price visualization, rises from radiating multi-leg spread components. This depicts Prime RFQ driven liquidity aggregation for institutional-grade Digital Asset Derivatives trading, ensuring high-fidelity execution and price discovery.](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-intelligence-layer-driving-rfq-protocol-enhanced-digital-asset-derivatives-liquidity-aggregation-and-best-execution.jpg)

Information leakage in RFQ trades is the unintentional signaling of intent, turning the quest for competition into a source of actionable data.

- 
### [How Does Algorithmic Selection Impact Information Leakage in RFQ Protocols?](https://options.greeks.live/question/how-does-algorithmic-selection-impact-information-leakage-in-rfq-protocols/)
![A modular, dark-toned system with light structural components and a bright turquoise indicator, representing a sophisticated Crypto Derivatives OS for institutional-grade RFQ protocols. It signifies private quotation channels for block trades, enabling high-fidelity execution and price discovery through aggregated inquiry, minimizing slippage and information leakage within dark liquidity pools.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-system-for-optimal-execution-1.jpg)

Algorithmic selection governs RFQ information leakage by optimizing the trade-off between competitive pricing and counterparty-induced adverse selection.

- 
### [How Can RFQ Data Be Used to Measure Information Leakage?](https://options.greeks.live/question/how-can-rfq-data-be-used-to-measure-information-leakage/)
![A precision-engineered apparatus with a luminous green beam, symbolizing a Prime RFQ for institutional digital asset derivatives. It facilitates high-fidelity execution via optimized RFQ protocols, ensuring precise price discovery and mitigating counterparty risk within market microstructure.](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-rfq-protocol-high-fidelity-digital-asset-derivatives-execution.jpg)

RFQ data measures information leakage by benchmarking execution prices against pre-trade market states and analyzing behavioral anomalies.

- 
### [How Does the Problem of Information Leakage in RFQ Markets Compare to That in Dark Pools?](https://options.greeks.live/question/how-does-the-problem-of-information-leakage-in-rfq-markets-compare-to-that-in-dark-pools/)
![A polished glass sphere reflecting diagonal beige, black, and cyan bands, rests on a metallic base against a dark background. This embodies RFQ-driven Price Discovery and High-Fidelity Execution for Digital Asset Derivatives, optimizing Market Microstructure and mitigating Counterparty Risk via Prime RFQ Private Quotation.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-best-execution-protocol.jpg)

Information leakage in RFQ markets is a controlled disclosure to known dealers, while in dark pools it is a risk of anonymous detection.

- 
### [What Are the Primary Differences between Adverse Selection in Lit Markets versus RFQ Auctions?](https://options.greeks.live/question/what-are-the-primary-differences-between-adverse-selection-in-lit-markets-versus-rfq-auctions/)
![A precision metallic instrument with a black sphere rests on a multi-layered platform. This symbolizes institutional digital asset derivatives market microstructure, enabling high-fidelity execution and optimal price discovery across diverse liquidity pools. Essential for managing counterparty risk and multi-leg spread strategies within the Prime RFQ protocol intelligence layer.](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-rfq-protocol-engine-component-digital-asset-derivatives-market-microstructure.jpg)

Adverse selection in lit markets is a systemic risk from anonymity; in RFQ auctions, it is a manageable risk mitigated by counterparty selection.

- 
### [How Does Counterparty Selection Impact Information Leakage in RFQ Protocols?](https://options.greeks.live/question/how-does-counterparty-selection-impact-information-leakage-in-rfq-protocols/)
![A sharp, metallic blue instrument with a precise tip rests on a light surface, suggesting pinpoint price discovery within market microstructure. This visualizes high-fidelity execution of digital asset derivatives, highlighting RFQ protocol efficiency. It represents the intelligence layer of a Prime RFQ for atomic settlement.](https://options.greeks.live/wp-content/uploads/2025/07/precision-digital-asset-derivative-rfq-execution-market-microstructure-high-fidelity-alpha-generation-prime-os-system.jpg)

Counterparty selection in RFQ protocols directly governs information leakage, impacting execution quality and the preservation of alpha.

- 
### [How Does the Concept of Adverse Selection Relate to Information Leakage in an RFQ System?](https://options.greeks.live/question/how-does-the-concept-of-adverse-selection-relate-to-information-leakage-in-an-rfq-system/)
![A sleek blue surface with droplets represents a high-fidelity Execution Management System for digital asset derivatives, processing market data. A lighter surface denotes the Principal's Prime RFQ. A teal square symbolizes a block trade inquiry, facilitating price discovery and optimal execution via RFQ protocols.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-rfq-execution-for-optimal-price-discovery.jpg)

Adverse selection in RFQ systems is the execution cost incurred when information leakage allows dealers to price against a known trading intent.

---

## 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": "What Are the Best Practices for Measuring Information Leakage When Selecting RFQ Counterparties?",
            "item": "https://options.greeks.live/question/what-are-the-best-practices-for-measuring-information-leakage-when-selecting-rfq-counterparties/"
        }
    ]
}
```

```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/what-are-the-best-practices-for-measuring-information-leakage-when-selecting-rfq-counterparties/"
    },
    "headline": "What Are the Best Practices for Measuring Information Leakage When Selecting RFQ Counterparties? \u25b4 Question",
    "description": "A disciplined RFQ process minimizes leakage by treating information as a currency and counterparty selection as a data-driven science. \u25b4 Question",
    "url": "https://options.greeks.live/question/what-are-the-best-practices-for-measuring-information-leakage-when-selecting-rfq-counterparties/",
    "datePublished": "2025-08-08T23:33:01+00:00",
    "dateModified": "2025-10-29T20:58:15+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/2025/08/institutional-grade-rfq-protocol-engine-facilitating-best-execution-and-liquidity-aggregation-for-digital-asset-derivatives.jpg",
        "caption": "The image depicts a sophisticated spherical system, symbolizing an institutional digital asset derivative, resting on a robust Prime RFQ base. This advanced architecture represents a core liquidity pool for multi-leg spread execution via high-fidelity RFQ protocols. The system ensures best execution, minimizes information leakage, and optimizes portfolio margin for institutional clients, leveraging algorithmic trading and pre-trade analytics for superior alpha generation and capital efficiency in volatile markets."
    },
    "keywords": [
        "Adverse Selection",
        "Algo Wheel",
        "Algorithmic Trading",
        "Best Execution",
        "Counterparty Selection",
        "Endogenous Search Friction",
        "Front-Running",
        "Information Design",
        "Information Leakage",
        "Market Conditions",
        "Market Microstructure",
        "Minimum Quantity Orders",
        "Parent Order",
        "RFQ",
        "RFQ Auction",
        "Search Friction",
        "Transaction Cost Analysis",
        "Two-Sided Quotes"
    ]
}
```

```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"
    }
}
```


---

**Original URL:** https://options.greeks.live/question/what-are-the-best-practices-for-measuring-information-leakage-when-selecting-rfq-counterparties/
