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I asked a liquidity provider to reduce its bid-ask spread which has already met minimum service levels for quote requests. Is the liquidity provider obliged to provide a tighter spread?

The liquidity provider is only required to commit to the minimum service level. If your request for a bid-ask spread reduction is a tighter standard than the minimum service level, the liquidity provider is not obliged, and may not be able, to provide a tighter spread. It is because the bidask spread may change from time to time or even widen according to the prevailing market conditions affecting the underlying asset (such as hedging costs and liquidity, spread and volatility of the underlying).