The SEF RFQ Minimum is Moving to 3. Does it matter? Nope.

By | July 18, 2014

On October 2 market participants requesting price quotes for an order via a SEF will have to ask a minimum of three dealers to three-fingersrespond rather than the current minimum of two. For those of you that followed the SEF rule writing process from the beginning, you’ll remember that the inclusion of RFQ as an acceptable trading protocol and the minimum number of liquidity providers that must see each quote were hotly debated topics right until the bitter end. Former Chairman Gensler wanted a minimum of five, the SEC proposed one for security-based SEFs and Javelin SEF among others asked for three.  In fact it was this debate between Commissioner Wetjen and Chairman Gensler that delayed the finalization of the SEF rules until their final passage in May 2013.

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