A firm quote (aka, bona fide quote) that will be firm (i.e., be holding) for a specified period, usually an hour, with a five-minute recall window. The recall window (set as a recall provision) enables the quote provider to prompt the other side of the trade to make a decision within a five-minute period or the quote will be considered ineffective and is no more on offer.

For example, a dealer posts a request for quote (“offer wanted” request) and a market participants submits a “firm with recall” offer at a specific rate/ price. If in the meantime, a another market participant offers to buy the security at the same rate/ price.  The second offer cannot become firm as a commitment with the first offer is still effective. The dealer, putting the other request on hold, can only respond with a “subject offer” (a provisional offer, pending confirmation or withdrawal of the first offer). Since the original offer is embedded with a recall provision, the dealer has to call the first bidder, requesting a firm response within five minutes or the offer will be cancelled. If the first bidder does not confirm the trade, the dealer can approach to the second bidder and accept its offer.

It is also known as a firm with recall , an out-firm quote, or a firm for one half-hour with a 5-min recall.