# How Can Firms Effectively Demonstrate Best Execution for Lis Trades without Rts 28 Reports? ▴ Question

**Published:** 2025-08-10
**Categories:** Question

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![Stacked, multi-colored discs symbolize an institutional RFQ Protocol's layered architecture for Digital Asset Derivatives. This embodies a Prime RFQ enabling high-fidelity execution across diverse liquidity pools, optimizing multi-leg spread trading and capital efficiency within complex market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-stack-for-high-fidelity-execution.jpg)

![Abstract depiction of an advanced institutional trading system, featuring a prominent sensor for real-time price discovery and an intelligence layer. Visible circuitry signifies algorithmic trading capabilities, low-latency execution, and robust FIX protocol integration for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-prime-os-high-fidelity-rfq-protocols.jpg)

## Concept

The dissolution of the RTS 28 reporting mandate has been misinterpreted by some as a relaxation of regulatory oversight. This perspective is fundamentally flawed. The core principle of [best execution](https://prime.greeks.live/area/best-execution/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) was never about the report itself; it was, and remains, a foundational duty of care owed to a client. The removal of a prescriptive, static reporting format elevates the nature of this duty.

It shifts the operational imperative from a routine, and often unexamined, compliance filing to the construction of a dynamic, principles-based evidentiary framework. The [Financial Conduct Authority](https://prime.greeks.live/question/what-is-the-role-of-the-financial-industry-regulatory-authority-finra-in-block-trading/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (FCA) has not lowered the bar; it has changed the nature of the test. Firms are now compelled to move beyond rote compliance and architect a coherent, internal system capable of demonstrating, on demand, that every order was handled with the client’s best interests as the central organizing principle.

For Large-in-Scale (LIS) trades, this shift is particularly significant. The inherent illiquidity and [market impact](https://prime.greeks.live/area/market-impact/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) potential of these orders mean that a simple price metric was always an insufficient measure of [execution quality](https://prime.greeks.live/question/how-should-a-firms-best-execution-committee-use-rfq-data-to-oversee-and-improve-execution-quality/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). The true test lies in a qualitative and quantitative assessment of a range of competing priorities. The FCA’s enduring rules in the Conduct of Business Sourcebook (COBS) codify this, requiring firms to consider a matrix of execution factors ▴ price, costs, speed, and the likelihood of execution and settlement.

Demonstrating fidelity to this multi-vector obligation without the rigid structure of RTS 28 requires a more sophisticated approach ▴ one grounded in a firm’s own rigorously defined and consistently applied [execution policy](https://prime.greeks.live/question/how-does-the-use-of-a-single-execution-venue-impact-a-firms-best-execution-policy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). The focus is no longer on public disclosure but on internal intellectual rigor and the creation of a defensible, auditable trail. This is a move from public bureaucracy to private accountability.

> The core best execution obligation persists, demanding a robust internal framework for evidence over standardized public reporting.

This new paradigm requires firms to think like systems architects. The challenge is to design and implement an operational process that not only achieves best execution but also generates the evidence of that achievement as a natural output of the trading workflow. It involves integrating data sources, codifying decision-making logic, and establishing clear governance protocols. The absence of RTS 28 is not a vacuum; it is a design space, inviting firms to build a superior, proprietary system for managing and evidencing their fiduciary duties in a way that is far more meaningful than the legacy reporting it replaced.

![A deconstructed mechanical system with segmented components, revealing intricate gears and polished shafts, symbolizing the transparent, modular architecture of an institutional digital asset derivatives trading platform. This illustrates multi-leg spread execution, RFQ protocols, and atomic settlement processes](https://options.greeks.live/wp-content/uploads/2025/07/deconstructed-principal-trading-system-revealing-core-mechanics-of-digital-asset-derivatives-execution.jpg)

![The central teal core signifies a Principal's Prime RFQ, routing RFQ protocols across modular arms. Metallic levers denote precise control over multi-leg spread execution and block trades](https://options.greeks.live/wp-content/uploads/2025/07/principals-prime-os-rfq-system-institutional-digital-asset-derivatives.jpg)

## Strategy

In an environment without prescriptive reporting standards, a firm’s strategy for demonstrating best execution must be anchored in two core components ▴ a comprehensive [Order Execution Policy](https://prime.greeks.live/area/order-execution-policy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) and a robust [Transaction Cost Analysis](https://prime.greeks.live/area/transaction-cost-analysis/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (TCA) program. This is a strategic pivot from periodic, backward-looking reporting to continuous, real-time monitoring and ex-post validation. The Order Execution Policy serves as the constitutional document for the firm’s trading function, clearly articulating the methodologies used to satisfy the multi-factor requirements laid out by regulators. For LIS trades, this policy must be granular, detailing how the firm prioritizes and balances the competing execution factors based on order characteristics and prevailing market conditions.

![A precision internal mechanism for 'Institutional Digital Asset Derivatives' 'Prime RFQ'. White casing holds dark blue 'algorithmic trading' logic and a teal 'multi-leg spread' module](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-rfq-engine-high-fidelity-execution-liquidity-aggregation.jpg)

## The Dynamic Evidentiary Framework

A modern strategy treats the demonstration of best execution as an ongoing, data-driven process. It is a system designed to answer inquiries from clients or regulators with a complete and coherent body of evidence. This framework moves beyond simple compliance to become a source of competitive advantage, enabling the firm to refine its execution strategies over time. The table below contrasts the legacy RTS 28 approach with this more dynamic, internal system.

| Component | Legacy RTS 28 Approach | Dynamic Evidentiary Framework |
| --- | --- | --- |
| Focus | Annual, public, backward-looking report on top-five venues. | Continuous, internal, forward-looking process improvement. |
| Primary Metric | Venue-level statistics, often aggregated and lacking order-specific context. | Order-specific, multi-factor TCA metrics (e.g. implementation shortfall). |
| LIS Trade Handling | Aggregated into venue data, obscuring the nuances of large block execution. | Specific pre-trade, intra-trade, and post-trade analysis for each significant order. |
| Goal | Fulfill a public disclosure requirement. | Create a defensible audit trail and generate insights to improve future execution quality. |
| Data Utility | Low; reports were widely considered to be of little practical use to investors. | High; TCA data directly informs broker, venue, and algorithm selection. |

![Intersecting metallic structures symbolize RFQ protocol pathways for institutional digital asset derivatives. They represent high-fidelity execution of multi-leg spreads across diverse liquidity pools](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-framework-optimizing-multi-leg-spreads-and-liquidity-aggregation-for-best-execution.jpg)

## The Centrality of Multi-Factor TCA

[Transaction Cost](https://prime.greeks.live/area/transaction-cost/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) Analysis is the engine of the dynamic framework. For [LIS trades](https://prime.greeks.live/area/lis-trades/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), a generic TCA model is insufficient. The analysis must be tailored to the specific challenges of executing large blocks, where market impact is often the largest component of cost. The strategy must incorporate a three-stage analytical process:

- **Pre-Trade Analysis** ▴ This involves documenting the “why” before the “how.” Before an order is placed, the system should capture the market conditions, liquidity profile of the instrument, and the rationale for selecting a particular execution strategy or venue. This could include, for example, the justification for using a dark pool or initiating a Request for Quote ([RFQ](https://prime.greeks.live/area/rfq/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite)) process with specific counterparties.

- **Intra-Trade Analysis** ▴ This is the capture of real-time execution data. For an LIS trade executed via RFQ, this means systematically logging all quotes received, the time of receipt, and the identity of the quoting counterparty. This creates an irrefutable [audit trail](https://prime.greeks.live/question/how-can-immutable-ledgers-be-used-to-guarantee-the-integrity-of-an-rfq-audit-trail-for-regulators/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) of the competitive environment at the moment of execution. For algorithmic trades, it means monitoring the order’s performance against a benchmark in real time.

- **Post-Trade Analysis** ▴ This is the final, quantitative assessment. Using metrics like [implementation shortfall](https://prime.greeks.live/area/implementation-shortfall/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (the difference between the decision price and the final execution price), the firm can measure the total cost of execution, including explicit commissions and implicit market impact. This analysis should be conducted not just on an individual trade basis, but also aggregated over time to identify patterns in broker or venue performance. 

This multi-stage TCA process provides a complete narrative for each LIS trade. It allows a firm to move beyond simply stating it achieved the best outcome and instead provides the structured data to prove it, satisfying the FCA’s requirement that firms be able to demonstrate their compliance upon request. 

![A sophisticated dark-hued institutional-grade digital asset derivatives platform interface, featuring a glowing aperture symbolizing active RFQ price discovery and high-fidelity execution. The integrated intelligence layer facilitates atomic settlement and multi-leg spread processing, optimizing market microstructure for prime brokerage operations and capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/institutional-crypto-derivatives-rfq-engine-intelligence-layer.jpg)

![Abstract machinery visualizes an institutional RFQ protocol engine, demonstrating high-fidelity execution of digital asset derivatives. It depicts seamless liquidity aggregation and sophisticated algorithmic trading, crucial for prime brokerage capital efficiency and optimal market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-system-1.jpg)

## Execution

The execution of a [best execution policy](https://prime.greeks.live/area/best-execution-policy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) in the absence of RTS 28 is a matter of operationalizing the principles of evidence gathering. It requires the systematic integration of data capture and governance into the daily trading workflow. The goal is to create a robust, auditable record as a natural by-product of the execution process, rather than as a separate, manual task. This record must be sufficient to reconstruct the circumstances of any given LIS trade and justify the execution strategy chosen.

![Two abstract, polished components, diagonally split, reveal internal translucent blue-green fluid structures. This visually represents the Principal's Operational Framework for Institutional Grade Digital Asset Derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-rfq-execution-prime-os-liquidity-framework.jpg)

## Operationalizing the Audit Trail

For every significant LIS trade, a detailed evidence file should be compiled. This file is the firm’s primary defense against any challenge to its execution quality. It should be structured around the key decision points in the trade lifecycle.

A critical component for many LIS trades, particularly in fixed income or OTC derivatives, is the Request for Quote (RFQ) process. Capturing the data from this process is non-negotiable.

> Systematic logging of competing quotes and the rationale for venue selection forms the bedrock of a defensible best execution file.

The following table provides a template for the kind of data that should be captured for an RFQ-based LIS order, forming a concrete part of the audit trail:

| Data Point | Description | Evidentiary Purpose |
| --- | --- | --- |
| Pre-Trade Benchmark | The prevailing market price (e.g. composite mid-price) at the time of the decision to trade. | Establishes a baseline for measuring execution quality and implementation shortfall. |
| Venue Selection Rationale | A documented reason for choosing the specific execution method (e.g. RFQ to 5 dealers vs. dark pool sweep). | Demonstrates that the firm considered the likelihood of execution and potential market impact. |
| Counterparty Quotes | A log of all quotes received, including counterparty name, price, quantity, and timestamp. | Provides clear evidence of a competitive process and justifies the choice of the executed counterparty. |
| Execution Timestamp | The precise time the trade was executed. | Allows for accurate comparison against the pre-trade benchmark and market movements. |
| Post-Trade TCA Report | Calculation of implementation shortfall, price slippage, and other relevant metrics. | Quantifies the outcome and allows for comparison against similar trades and historical performance. |

![A complex core mechanism with two structured arms illustrates a Principal Crypto Derivatives OS executing RFQ protocols. This system enables price discovery and high-fidelity execution for institutional digital asset derivatives block trades, optimizing market microstructure and capital efficiency via private quotations](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-digital-asset-derivatives-rfq-execution-protocol-system.jpg)

## Governance and Oversight

Demonstrating best execution is also a function of robust governance. A firm must have a formal structure for reviewing execution quality and holding traders and brokers accountable. This is typically achieved through a Best Execution Committee or a similar governance body.

The committee’s role is to move beyond individual transactions and assess the firm’s execution performance systemically. This involves a structured, periodic review process.

- **Data Aggregation** ▴ On a quarterly basis, all post-trade TCA data is aggregated. Outliers ▴ trades with exceptionally high or low costs ▴ are flagged for specific review.

- **Broker and Venue Review** ▴ The committee analyzes the performance of all execution venues and brokers used during the period. This analysis should be multi-faceted, considering not just price, but also factors like failure-to-settle rates and responsiveness during volatile periods.

- **Policy Attestation** ▴ The committee reviews a sample of LIS trade files to ensure that the documented rationale is sound and that the execution policy is being followed consistently. Any deviations must be explained and documented.

- **Actionable Insights** ▴ The review process must conclude with concrete actions. This could involve changing the broker list, adjusting algorithmic parameters, or providing further training to the trading desk. The minutes of these meetings and the resulting actions are a crucial part of the firm’s evidentiary record.

This systematic process of data capture, analysis, and governance creates a closed-loop system. It ensures not only that the firm can prove it achieved best execution on a past trade but also that it is continuously refining its processes to achieve better execution in the future. This is the ultimate fulfillment of the principles-based obligation.

![The image depicts two interconnected modular systems, one ivory and one teal, symbolizing robust institutional grade infrastructure for digital asset derivatives. Glowing internal components represent algorithmic trading engines and intelligence layers facilitating RFQ protocols for high-fidelity execution and atomic settlement of multi-leg spreads](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-platform-1.jpg)

## References

- Financial Conduct Authority. “PS21/20 ▴ Changes to UK MiFID’s conduct and organisational requirements.” FCA, 30 Nov. 2021.

- Financial Conduct Authority. “FCA Handbook, COBS 11.2A ▴ Best execution ▴ MiFID provisions.”

- Nomura Asset Management U.K. Limited. “Order Execution and Best Execution Policy for Fixed Income ▴ July 2023.” 2023.

- Baker McKenzie. “UK ▴ FCA makes changes to MiFID II research rules and removes RTS 27 and RTS 28 best execution reporting.” Global Compliance News, 5 Jan. 2022.

![Abstract geometric forms depict multi-leg spread execution via advanced RFQ protocols. Intersecting blades symbolize aggregated liquidity from diverse market makers, enabling optimal price discovery and high-fidelity execution](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-multi-leg-rfq-execution-orchestration.jpg)

## Reflection

![Segmented beige and blue spheres, connected by a central shaft, expose intricate internal mechanisms. This represents institutional RFQ protocol dynamics, emphasizing price discovery, high-fidelity execution, and capital efficiency within digital asset derivatives market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-optimal-execution.jpg)

## From Mandate to Mechanism

The transition away from a prescriptive reporting standard marks a significant maturation point for the industry. It moves the measure of diligence from a public, standardized output to an internal, proprietary system of control. The question for each firm is no longer “Have we filed the correct report?” but rather “Have we built a sufficiently robust mechanism to validate our own execution quality?” This requires a deep investment in data infrastructure, analytical capability, and governance.

The output is a framework that provides not just regulatory defense, but true operational intelligence. It transforms a fiduciary duty from a burden to be managed into a process that can be optimized, yielding a durable competitive advantage in execution performance.

![Polished metallic pipes intersect via robust fasteners, set against a dark background. This symbolizes intricate Market Microstructure, RFQ Protocols, and Multi-Leg Spread execution](https://options.greeks.live/wp-content/uploads/2025/07/precision-engineered-metallic-nodes-illustrating-rfq-protocols-for-multi-leg-digital-asset-derivatives-institutional-execution.jpg)

## Glossary

<a href="https://prime.greeks.live/area/best-execution/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, institutional-grade RFQ engine precisely interfaces with a dark blue sphere, symbolizing a deep latent liquidity pool for digital asset derivatives. This robust connection enables high-fidelity execution and price discovery for Bitcoin Options and multi-leg spread strategies](https://options.greeks.live/wp-content/uploads/2025/07/institutional-crypto-derivatives-rfq-engine-linking-deep-liquidity-pools.jpg)

## Best Execution

Meaning ▴ Best Execution is the obligation to obtain the most favorable terms reasonably available for a client's order. </a><a href="https://prime.greeks.live/question/what-is-the-role-of-the-financial-industry-regulatory-authority-finra-in-block-trading/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, spherical intelligence layer component with internal blue mechanics and a precision lens. It embodies a Principal's private quotation system, driving high-fidelity execution and price discovery for digital asset derivatives through RFQ protocols, optimizing market microstructure and minimizing latency](https://options.greeks.live/wp-content/uploads/2025/08/principals-private-quotation-system-intelligence-layer-component.jpg)

## Financial Conduct Authority

FINRA's role in block trading is to architect market integrity by enforcing rules against the misuse of non-public information. </a><a href="https://prime.greeks.live/question/how-should-a-firms-best-execution-committee-use-rfq-data-to-oversee-and-improve-execution-quality/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Precision-engineered multi-vane system with opaque, reflective, and translucent teal blades. This visualizes Institutional Grade Digital Asset Derivatives Market Microstructure, driving High-Fidelity Execution via RFQ protocols, optimizing Liquidity Pool aggregation, and Multi-Leg Spread management on a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/precision-engineered-multi-vane-system-illustrating-institutional-digital-asset-derivatives-rfq-protocols-market-microstructure-optimized-liquidity-aggregation-prime-os-high-fidelity-execution.jpg)

## Execution Quality

A Best Execution Committee uses RFQ data to build a quantitative, evidence-based oversight system that optimizes counterparty selection and routing. </a><a href="https://prime.greeks.live/area/market-impact/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Precision-engineered components of an institutional-grade system. The metallic teal housing and visible geared mechanism symbolize the core algorithmic execution engine for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-institutional-digital-asset-derivatives-rfq-execution-layer.jpg)

## Market Impact

Meaning ▴ Market Impact refers to the observed change in an asset's price resulting from the execution of a trading order, primarily influenced by the order's size relative to available liquidity and prevailing market conditions. </a><a href="https://prime.greeks.live/question/how-does-the-use-of-a-single-execution-venue-impact-a-firms-best-execution-policy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sophisticated, symmetrical apparatus depicts an institutional-grade RFQ protocol hub for digital asset derivatives, where radiating panels symbolize liquidity aggregation across diverse market makers. Central beams illustrate real-time price discovery and high-fidelity execution of complex multi-leg spreads, ensuring atomic settlement within a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/institutional-grade-rfq-protocol-facilitating-atomic-settlement-and-high-fidelity-execution-of-multi-leg-spreads.jpg)

## Execution Policy

A single-venue policy centralizes execution, demanding rigorous, continuous data analysis to prove its superiority over a diversified approach. </a><a href="https://prime.greeks.live/area/transaction-cost-analysis/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Internal, precise metallic and transparent components are illuminated by a teal glow. This visual metaphor represents the sophisticated market microstructure and high-fidelity execution of RFQ protocols for institutional digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-engine-microstructure-prime-os-intelligence-layer-atomic-settlement-precision.jpg)

## Transaction Cost Analysis

Meaning ▴ Transaction Cost Analysis (TCA) is the quantitative methodology for assessing the explicit and implicit costs incurred during the execution of financial trades. </a><a href="https://prime.greeks.live/area/order-execution-policy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Abstract dark reflective planes and white structural forms are illuminated by glowing blue conduits and circular elements. This visualizes an institutional digital asset derivatives RFQ protocol, enabling atomic settlement, optimal price discovery, and capital efficiency via advanced market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-optimized-for-high-fidelity-execution-1.jpg)

## Order Execution Policy

Meaning ▴ An Order Execution Policy defines the systematic procedures and criteria governing how an institutional trading desk processes and routes client or proprietary orders across various liquidity venues. </a><a href="https://prime.greeks.live/area/transaction-cost/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Intricate core of a Crypto Derivatives OS, showcasing precision platters symbolizing diverse liquidity pools and a high-fidelity execution arm. This depicts robust principal's operational framework for institutional digital asset derivatives, optimizing RFQ protocol processing and market microstructure for best execution](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-microstructure-execution-system.jpg)

## Transaction Cost

Meaning ▴ Transaction Cost represents the total quantifiable economic friction incurred during the execution of a trade, encompassing both explicit costs such as commissions, exchange fees, and clearing charges, alongside implicit costs like market impact, slippage, and opportunity cost. </a><a href="https://prime.greeks.live/area/lis-trades/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A precision-engineered blue mechanism, symbolizing a high-fidelity execution engine, emerges from a rounded, light-colored liquidity pool component, encased within a sleek teal institutional-grade shell. This represents a Principal's operational framework for digital asset derivatives, demonstrating algorithmic trading logic and smart order routing for block trades via RFQ protocols, ensuring atomic settlement](https://options.greeks.live/wp-content/uploads/2025/07/institutional-crypto-derivatives-os-core-algorithmic-execution-engine.jpg)

## Lis Trades

Meaning ▴ LIS Trades, an acronym for Large In Scale Trades, designates block transactions that surpass a specific, predefined quantitative threshold established by regulatory frameworks, differentiating them from typical order book activity. </a><a href="https://prime.greeks.live/area/rfq/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek pen hovers over a luminous circular structure with teal internal components, symbolizing precise RFQ initiation. This represents high-fidelity execution for institutional digital asset derivatives, optimizing market microstructure and achieving atomic settlement within a Prime RFQ liquidity pool](https://options.greeks.live/wp-content/uploads/2025/07/optimizing-digital-asset-derivatives-rfq-through-prime-os-precision.jpg)

## Rfq

Meaning ▴ Request for Quote (RFQ) is a structured communication protocol enabling a market participant to solicit executable price quotations for a specific instrument and quantity from a selected group of liquidity providers. </a><a href="https://prime.greeks.live/question/how-can-immutable-ledgers-be-used-to-guarantee-the-integrity-of-an-rfq-audit-trail-for-regulators/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Sleek metallic system component with intersecting translucent fins, symbolizing multi-leg spread execution for institutional grade digital asset derivatives. It enables high-fidelity execution and price discovery via RFQ protocols, optimizing market microstructure and gamma exposure for capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-trading-system-rfq-protocols.jpg)

## Audit Trail

Immutable ledgers guarantee RFQ audit trail integrity by creating a tamper-proof, chronological, and cryptographically-linked record of all events. </a><a href="https://prime.greeks.live/area/implementation-shortfall/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A futuristic, metallic structure with reflective surfaces and a central optical mechanism, symbolizing a robust Prime RFQ for institutional digital asset derivatives. It enables high-fidelity execution of RFQ protocols, optimizing price discovery and liquidity aggregation across diverse liquidity pools with minimal slippage](https://options.greeks.live/wp-content/uploads/2025/07/precision-engineered-platform-for-institutional-digital-asset-derivatives-rfq-protocol-optimized-execution-management-system-with-robust-liquidity-sourcing.jpg)

## Implementation Shortfall

Meaning ▴ Implementation Shortfall quantifies the total cost incurred from the moment a trading decision is made to the final execution of the order. </a><a href="https://prime.greeks.live/area/best-execution-policy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Internal components of a Prime RFQ execution engine, with modular beige units, precise metallic mechanisms, and complex data wiring. This infrastructure supports high-fidelity execution for institutional digital asset derivatives, facilitating advanced RFQ protocols, optimal liquidity aggregation, multi-leg spread trading, and efficient price discovery](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-core-rfq-engine-for-institutional-digital-asset-options.jpg)

## Best Execution Policy

Meaning ▴ The Best Execution Policy defines the obligation for a broker-dealer or trading firm to execute client orders on terms most favorable to the client. </a>

**Tags:** [Market Impact](https://options.greeks.live/area/market-impact/), [Best Execution](https://options.greeks.live/area/best-execution/), [Cost Analysis](https://options.greeks.live/area/cost-analysis/), [Transaction Cost](https://options.greeks.live/area/transaction-cost/), [Execution Venue Analysis](https://options.greeks.live/area/execution-venue-analysis/), [Implementation Shortfall](https://options.greeks.live/area/implementation-shortfall/)	

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- 
### [How Can a Firm Use TCA Data to Comply with Best Execution Regulations like MiFID II?](https://options.greeks.live/question/how-can-a-firm-use-tca-data-to-comply-with-best-execution-regulations-like-mifid-ii/)
![A precise stack of multi-layered circular components visually representing a sophisticated Principal Digital Asset RFQ framework. Each distinct layer signifies a critical component within market microstructure for high-fidelity execution of institutional digital asset derivatives, embodying liquidity aggregation across dark pools, enabling private quotation and atomic settlement.](https://options.greeks.live/wp-content/uploads/2025/07/principal-digital-asset-rfq-protocol-layers-for-high-fidelity-execution.jpg)

TCA provides the empirical data architecture required to prove and improve execution quality in compliance with MiFID II's best execution mandate.

- 
### [In the Absence of RTS 28 Reporting What Are the Current Expectations for Proving Best Execution?](https://options.greeks.live/question/in-the-absence-of-rts-28-reporting-what-are-the-current-expectations-for-proving-best-execution/)
![A deconstructed mechanical system with segmented components, revealing intricate gears and polished shafts, symbolizing the transparent, modular architecture of an institutional digital asset derivatives trading platform. This illustrates multi-leg spread execution, RFQ protocols, and atomic settlement processes.](https://options.greeks.live/wp-content/uploads/2025/07/deconstructed-principal-trading-system-revealing-core-mechanics-of-digital-asset-derivatives-execution.jpg)

Proving best execution without RTS 28 requires an internal, evidence-based framework combining quantitative TCA with qualitative governance.

- 
### [What Is the Role of Transaction Cost Analysis in Refining RFQ Execution Protocols?](https://options.greeks.live/question/what-is-the-role-of-transaction-cost-analysis-in-refining-rfq-execution-protocols/)
![Reflective and circuit-patterned metallic discs symbolize the Prime RFQ powering institutional digital asset derivatives. This depicts deep market microstructure enabling high-fidelity execution through RFQ protocols, precise price discovery, and robust algorithmic trading within aggregated liquidity pools.](https://options.greeks.live/wp-content/uploads/2025/08/prime-os-architecture-driving-institutional-digital-asset-derivatives-rfq-protocols-for-optimal-liquidity-and-best-execution.jpg)

Transaction Cost Analysis provides the quantitative feedback loop to refine RFQ protocols, minimizing information leakage and optimizing counterparty selection.

- 
### [How Can Transaction Cost Analysis Be Used to Defend RFQ Counterparty Selection?](https://options.greeks.live/question/how-can-transaction-cost-analysis-be-used-to-defend-rfq-counterparty-selection/)
![A sophisticated digital asset derivatives trading mechanism features a central processing hub with luminous blue accents, symbolizing an intelligence layer driving high fidelity execution. Transparent circular elements represent dynamic liquidity pools and a complex volatility surface, revealing market microstructure and atomic settlement via an advanced RFQ protocol.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-high-fidelity-execution-framework-optimizing-market-microstructure-price-discovery-intelligence-layer.jpg)

TCA provides the empirical evidence to defend RFQ counterparty choices by quantifying total execution cost beyond the initial quote.

- 
### [How Does Transaction Cost Analysis Prove Sufficient Steps in Best Execution?](https://options.greeks.live/question/how-does-transaction-cost-analysis-prove-sufficient-steps-in-best-execution/)
![A sophisticated teal and black device with gold accents symbolizes a Principal's operational framework for institutional digital asset derivatives. It represents a high-fidelity execution engine, integrating RFQ protocols for atomic settlement. This intelligence layer optimizes price discovery, managing portfolio margin and ensuring best execution in market microstructure.](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-protocol-core-engine-for-best-execution.jpg)

Transaction Cost Analysis provides the quantitative, auditable evidence of execution quality, transforming the best execution mandate from a policy into a measurable, defensible process.

- 
### [What Are the Primary Best Execution Factors under the MiFID II Framework?](https://options.greeks.live/question/what-are-the-primary-best-execution-factors-under-the-mifid-ii-framework/)
![A sharp, dark, precision-engineered element, indicative of a targeted RFQ protocol for institutional digital asset derivatives, traverses a secure liquidity aggregation conduit. This interaction occurs within a robust market microstructure platform, symbolizing high-fidelity execution and atomic settlement under a Principal's operational framework for best execution.](https://options.greeks.live/wp-content/uploads/2025/07/principal-grade-digital-asset-derivatives-rfq-protocol-execution-engine.jpg)

MiFID II best execution demands a systematic, data-driven framework to demonstrably secure the best possible client outcome.

- 
### [How Does a Firm’s Best Execution Policy Evolve over Time?](https://options.greeks.live/question/how-does-a-firms-best-execution-policy-evolve-over-time/)
![A smooth, off-white sphere rests within a meticulously engineered digital asset derivatives RFQ platform, featuring distinct teal and dark blue metallic components. This sophisticated market microstructure enables private quotation, high-fidelity execution, and optimized price discovery for institutional block trades, ensuring capital efficiency and best execution.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-system-microstructure-core.jpg)

A firm's best execution policy evolves from a static compliance document into a dynamic, data-driven operational system to master market complexity.

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---

**Original URL:** https://options.greeks.live/question/how-can-firms-effectively-demonstrate-best-execution-for-lis-trades-without-rts-28-reports/
