Buy side using two-way prices in bid to hide trade intent

Number of trades done via ‘request-for-market’ protocol leaps 510% in past year

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European buy-side firms are increasingly asking dealers to quote two-way prices for interest rate swaps, in an attempt to hide their plans from the market.

Two-way pricing, also known as request-for-market (RFM), involves a firm asking for both the pay and receive price for a given instrument, instead of just one, as is usually the case in a request-for-quote (RFQ). In a multi-bank RFQ, some clients believe dealers that have been asked to quote – but not won the business – will use the

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