US agency broker and trading technology provider Bloomberg Tradebook has launched an electronic request for quotes (RFQ) service for US equity options. The service allows buy-side firms to send RFQs anonymously to options market makers through the Bloomberg Professional electronic trading, news and analytics service.
Options RFQs are traditionally submitted to market makers over the telephone or through instant messaging. Tradebook’s electronic service allows traders to send RFQs to multiple market makers, potentially enabling them to receive multiple bids from a single request, while also preventing information leakage and market impact by protecting the trader’s identity.
In addition, this further step toward automation of the options trading process reduces errors and allows for a full audit trail from request to confirmation.
The service may be a particular advantage to firms who need more efficient access to the US options trading marketplace. “It grants access to market-maker liquidity to those who might not have it,” said Mike Tobey, head developer of Tradebook’s US options platform.