Request for Order Trading
The Request for Order (RFO) protocol is OpenYield’s real-time, fully automated RFQ workflow. It lets subscribers with existing RFQ systems access OpenYield’s algo-driven liquidity with minimal changes, while bringing full pre-trade transparency to an otherwise opaque process. All RFO trading is pre-trade anonymous.
How it works
- A subscriber sends a Request message to OpenYield, which distributes it to registered responders. The request may include a reserve price. The collection window is very short — 5 seconds.
- Responders post Quotes (or Limit Orders) directly onto the live order book.
- At the end of the collection window, the request is entered on the order book as a Limit Order at the reserve price (if set). Any crossing orders execute immediately.
- At the end of the firm window (25 seconds), OpenYield removes any remaining orders on behalf of subscribers. Total elapsed time: 30 seconds.
Differences from conventional RFQ
| RFO | Conventional RFQ | |
|---|---|---|
| Reserve price | Set by initiator; not disclosed to responders | Not applicable |
| Quote visibility | Populates the live order book in real time | Withheld until collection window closes |
| Execution | Fully automated | Manual |
| Elapsed time | 30 seconds maximum (fills often occur within the 5-second collection window) | Minutes to an hour |
| Mid-process changes | Initiators and responders can update or cancel at any time | Generally not supported |
Summon Liquidity (Indicative RFO)
For systems that display a live order book, OpenYield offers an indicative RFO that signals liquidity-provider algos to post prices into the book immediately. Responders can reply via the RFO protocol or post directly to the order book — in the latter case they are responsible for maintaining and canceling their own orders. This ensures that a sparse order book for low-liquidity bonds or municipal bonds is only a temporary condition.