BIT, the cryptocurrency derivative exchange launched by Matrixport, is excited to announce its partnership with Paradigm, the leading OTC liquidity network. Together, we’re launching a fully-automated Request For Quote (RFQ) protocol on BIT. This new RFQ protocol will provide on-demand liquidity for large-size orders and competitive pricing for the following structures:
- Single-leg structures (Outright Calls, Puts) for BTC, ETH and BCH
- Coming soon: Multi-leg structures for BTC, ETH, and BCH
BIT/Paradigm RFQ allows you to simultaneously request two-way quotes from multiple dealers without revealing your identity or trade direction and then instantly execute on the best bid/offer. Paradigm aggregates prices and displays the best bid/offer on BIT. Your execution is confirmed on Paradigm and settled in your BIT account.
With more financial institutions entering the crypto market, RFQ will play an important role in the growth of institutional crypto option trading by providing a single point of access to multi-dealer, block liquidity.
Sign me up! How do I use RFQ on BIT?
- Submit an RFQ by selecting the “Inquiry” button on BIT for an Option contract.
- BIT electronically notifies Paradigm to request quotes from multiple makers.
- The best quotes are displayed to you on BIT.
- Review the best bid/offer and decide to buy or sell the contract.
- BIT notifies Paradigm to execute the trade and complete the settlement in your BIT account.
What do I need to use the RFQ feature?
- Make sure your user account is whitelisted (ask your BIT sales representative or email vip@bit.com to request activation).
- Complete KYC2 verification on BIT.
- Create an API key with Block Trade on BIT.
- Bind the Paradigm API key on BIT.
For detailed instructions on constructing RFQs, see our Help Center article on RFQ.