Request for quote
A Request for Quote is a financial term for certain way to ask a bank for an offer of a given financial instrument from a bank, made available by so-called Approved Publication Arrangement by the stock markets itself or by Financial data vendors as required in Europe by MiFID II and in effect since January 2018. A RFQ contains at least the ISIN to uniquely identify the financial product, the type, the amount, a currency, and the volume.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 of the Commission Delegated Regulation 2017/583 of 14 July 2016 defines:
This essentially means, that everybody buying or selling stocks, bonds, foreign exchange, commodities or exchange-traded funds will generate an RfQ before the trade is settled.
