A Request for Quote (RfQ) is a financial term for certain way to ask a

bank A bank is a financial institution that accepts deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital markets. Becau ...

for an offer of a given

financial instrument Financial instruments are monetary contracts between parties. They can be created, traded, modified and settled. They can be cash (currency), evidence of an ownership interest in an entity or a contractual right to receive or deliver in the form ...

from a bank, made available by so-called

Approved Publication Arrangement With MiFID II directive being in force in January 2018, Approved Publication Arrangements (APA) data should increase transparency in the OTC markets by publishing quotes for pre-trade transparency, and trades for post-trade transparency. An APA ...

(APA) by the stock markets itself or by

Financial data vendor A financial data vendor provides market data to financial firms, traders, and investors. The data distributed is collected from sources such as stock exchange feeds, brokers and dealer desks or regulatory filings (e.g. an SEC filing). History Fin ...

s as required in Europe by

MiFID II Markets in Financial Instruments Directive 20142014/65/EU commonly known as MiFID 2 (Markets in financial instruments directive 2), is a legal act of the European Union. Together with Regulation (EU) No 600/2014 it provides a legal framework fo ...

and in effect since January 2018. A RFQ contains at least the

ISIN Isin (, modern Arabic: Ishan al-Bahriyat) is an archaeological site in Al-Qādisiyyah Governorate, Iraq. Excavations have shown that it was an important city-state in the past. History of archaeological research Ishan al-Bahriyat was visited ...

to uniquely identify the financial product, the type (buy/ sell), the amount, a currency, and the volume (

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in given currency).

Background

In the wake of the 2007-09 financial crisis there was an initiative to create more ''pre-trade transparency'', for which it is essential to know who is requesting which financial product. Article 1(2) of the Commission Delegated Regulation (EU) 2017/583 of 14 July 2016 (which supplements Regulation (EU) No 600/2014 of the European Parliament and of the Council on markets in financial instruments) defines: This essentially means, that everybody buying or selling

stocks Stocks are feet restraining devices that were used as a form of corporal punishment and public humiliation. The use of stocks is seen as early as Ancient Greece, where they are described as being in use in Solon's law code. The law describing ...

bonds Bond or bonds may refer to: Common meanings * Bond (finance), a type of debt security * Bail bond, a commercial third-party guarantor of surety bonds in the United States * Chemical bond, the attraction of atoms, ions or molecules to form chemical ...

foreign exchange The foreign exchange market (Forex, FX, or currency market) is a global decentralized or over-the-counter (OTC) market for the trading of currencies. This market determines foreign exchange rates for every currency. It includes all aspec ...

, commodities or exchange-traded funds (ETFs) will (automatically) generate an RfQ before the trade is settled.

References

External links

The

and APA data is distributed e.g. by * https://www.bloomberg.com/professional/product/apa/ * https://www.mds.deutsche-boerse.com/mds-de/data-services/marktdaten-in-echtzeit/deutsche-boerse-mifid-ii-apa-service * https://www.refinitiv.com/en/mifid/solutions-and-services/apa-and-publication-services Further reading: * https://www.cnbc.com/2017/12/15/mifid-2-all-you-need-to-know.html ― a concise summary on the topic, understandable for laymen. Finance {{finance-stub