Broker Trade Confirmation and Block RFQ Allocation Workflows

Summary

The document explains two Deribit broker workflows. In voice brokering, a broker links client accounts, enters a trade, and requests confirmation from both clients. A trade executes only after both confirm and have sufficient margin; manual confirmations expire if clients do not respond within the stated window. Brokers can monitor confirmations and cancel trades that remain unconfirmed.

For Block RFQs, a broker can pre-assign portions of a proposed trade to linked client accounts before submitting the request. If the broker executes against a quote, the chosen allocations are automatically booked to those accounts. The document says margin checks and fees apply to the allocated accounts, while the broker account’s fee rate is used; individual allocations need not meet the overall block’s minimum size. Automatic client confirmations are required for pre-allocation. These are platform-specific operational details, not evidence about execution quality, pricing advantages, or investment performance.

Key ideas

• Voice broker trades require confirmation from both linked clients and sufficient margin in both accounts.
• Manual confirmations expire after five minutes if clients do not respond.
• Brokers can pre-allocate Block RFQ trades to linked client accounts before submitting the RFQ.
• Margin checks and fees are applied to the accounts receiving allocations, while the broker account’s fee rate is used.
• Pre-allocation requires clients to use automatic confirmations.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.