All books

Professional

Apps About Coach Log in Start reading

Quantitative Finance · Glossary

What is Client tiering?

Definition 24.2 Strategies II: Volatility, Relative Value, Macro and the Bank Desks · Chapter 24 — Flow Market Making at a Bank

Client tiering is pricing each client, or group of clients, by what its trades cost the desk (its mark-out) and by how sensitive it is to price (its hit ratio against the desk’s quotes), rather than quoting everyone the same.

Read in context →