IBKR’s Request for Quote (RFQ) for Bonds

Study Notes:

This video will demonstrate how to use the RFQ function in order to request a quote for trading non-investment grade bonds designed to help you get the best possible price for your trade.

Unlike stock quotations, bond prices may often appear without a quote because they trade infrequently. On some occasions you may see either a one-or-two-sided quote. You may also be able to view the bid or ask size associated with the current price quote. Again, you may not be able to see volume if there is no quote available.

Use the RFQ function to request a quote from one of our available vendors. Here’s how it works.

Use the RFQ function to request a quote from one of our available vendors. Here’s how it works.

1. Access the Classic TWS interface.
2. Add a bond to your quote monitor, ensuring that you selected the SmartRouted bond.
3. Right-click on the line and from the pop-up menu locate Create RFQ.
4. A new row is added beneath the existing quote. You must now input two pieces of information.
   1. Click on the input field displaying Buy / Sell and choose one from the dropdown menu to show your interest.
   2. Enter the number of bonds you wish to transact.
5. Click the RFQ button to submit your expression of interest.
6. Returned quotes will appear below the symbol line displaying either the bid or the ask specific to the volume of bonds you indicated that you wanted to transact.

IBKR will use a rules-based methodology to route your request to one of our vendors.

Routing requirements may require minimum face value for bonds on occasion.

In either case, expressions of interest to interact with your potential order are invited via those networks. The bond venues may return firm prices to Trader Workstation and will be displayed for a period of time. Those quotes are firm for a period but will disappear after a short time. While on screen, you may deal on the displayed quote in the full amount of your order. Should a contributing vendor supply an improved bid or offer price compared to an existing quote, your screen will update to reflect the better price.

Additional Links:

IBKR Bond Marketplace

Request for Quote

Bond Search Tool