Indicative Quote System
The Indicative Quote System (IQs) is a service that allows trading members to enter quotes into the indicative order book and subsequently execute trades on the basis of those quotes in low-liquid derivatives.
- No initial margin is required to enter an indicative quote: margin check is realized before trade execution.
- Minimizing execution risk for market makers: the maker* may opt to reject the trade.
- A wider range of trading strategies: participants may implement trading strategies simultaneously across many low-liquid instruments.
* "Maker" means the party of a trade whose quote number in the Quote Register is lower that the number of the counter quote.
"Taker" means the party of a trade whose quote number in the Quote Register is higher that the number of the counter quote.
|Main order book||Indicative order book|
|Differences||What is entered?||Order||Indicative quote|
|Margin check||At order entry||Not applied at quote entry
(but occurs before trade execution in the main order book)
|Option to reject the trade||No||Yes
|Common||Order book mechanism||Order-driven trading|
|Usernames to connect||Same for both order books|