In a significant advancement for cryptocurrency trading, Deribit, the leading crypto options exchange, has launched its Block Request-For-Quote (RFQ) interface. This innovative feature is designed to allow traders to execute large over-the-counter (OTC) trades with increased efficiency and access to liquidity.
Available to all users, the Block RFQ interface is particularly tailored for high-volume traders who wish to negotiate block trades directly without affecting public order books. This initiative aims to streamline the trading process and enhance the overall trading experience, enabling users to capitalize on market opportunities with greater agility.
The Block RFQ system boasts the capability to support complex trading structures, enabling users to combine options, futures, and spot pairs in a single trade that can consist of up to 20 legs. However, it is important to note that utilizing this system requires adherence to a higher minimum trade size, ensuring that only substantial trades are conducted through this avenue.
Employing a multi-maker model, the platform allows multiple liquidity providers to offer partial quotes, eliminating the need for all-or-nothing fills. This flexibility enhances liquidity access for traders and fosters a more dynamic trading environment. Additionally, third-party platforms can connect to the Block RFQ system, enabling the pooling of liquidity from various sources, according to the company’s press release.
This announcement follows closely on the heels of Sygnum Bank’s expansion of its custody platform to include Deribit, reflecting growing institutional interest in the derivatives exchange. Notably, Deribit is reportedly engaged in discussions with Kraken for a potential acquisition, marking a period of evolution and opportunity for the platform.
The introduction of the Block RFQ interface positions Deribit at the forefront of crypto trading innovation, catering to the needs of sophisticated traders and further solidifying its status as a key player in the cryptocurrency ecosystem.
