Panacea or Pipedream? Europe’s Equity Market Readies for RFQ

Europe’s cash equity market is gearing up for the launch of several request-for-quote (RFQ) platforms — a popular method of execution for fixed income, FX, derivatives and ETF instruments. At first glance, the RFQ model seems ill-suited to cash equities, an asset class typically characterised as highly liquid, agency-based and appropriate for electronic, order-book trading. However, regulatory changes in Europe, in particular the introduction of MiFID II, are promoting risk-based trading in equities, leading brokers and the buy-side to reassess how they deploy and access risk capital.

This TABB Group report, Panacea or Pipedream? Europe’s Equities Market Readies for RFQ, critically assesses the impact and drivers of the RFQ protocol in Europe’s equity market, based on discussions with major sell-side, buy-side and market-making firms.