# How Do Best Execution Obligations Differ between Systematic Internalisers and Mtfs? ▴ Question

**Published:** 2025-08-07
**Categories:** Question

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![A central Prime RFQ core powers institutional digital asset derivatives. Translucent conduits signify high-fidelity execution and smart order routing for RFQ block trades](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-liquidity-aggregation-engine.jpg)

![A sleek central sphere with intricate teal mechanisms represents the Prime RFQ for institutional digital asset derivatives. Intersecting panels signify aggregated liquidity pools and multi-leg spread strategies, optimizing market microstructure for RFQ execution, ensuring high-fidelity atomic settlement and capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-core-engine.jpg)

## Concept

The distinction between a [Systematic Internaliser](https://prime.greeks.live/area/systematic-internaliser/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (SI) and a [Multilateral Trading Facility](https://prime.greeks.live/area/multilateral-trading-facility/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (MTF) represents a core structural principle within the European Union’s MiFID II framework. Understanding this division is fundamental to designing and executing an institutional-grade trading strategy. It is a distinction rooted in the fundamental nature of interaction. An SI operates on a bilateral basis, where the investment firm acts as a principal, using its own capital to execute client orders.

In this model, the firm becomes the counterparty to its client’s trade. This architecture provides a direct, contained source of liquidity. In contrast, an MTF functions as a multilateral system. It brings together multiple third-party buying and selling interests in financial instruments, operating under a non-discretionary set of rules.

The MTF operator does not trade against its clients as a principal; it provides the technological and regulatory infrastructure for participants to interact with one another. The divergence in their [best execution obligations](https://prime.greeks.live/area/best-execution-obligations/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) flows directly from this foundational difference in operating models.

![A symmetrical, multi-faceted structure depicts an institutional Digital Asset Derivatives execution system. Its central crystalline core represents high-fidelity execution and atomic settlement](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-engine-microstructure.jpg)

## The Bilateral versus Multilateral Divide

An SI’s obligation is centered on its role as a proprietary liquidity provider. When a client sends an order to an SI, the SI is not merely routing it to a wider market; it is deciding whether to fill that order from its own book. Its [best execution](https://prime.greeks.live/area/best-execution/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) duty is therefore tied to the prices it quotes. These quotes must be consistent with [prevailing market conditions](https://prime.greeks.live/area/prevailing-market-conditions/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), but the execution itself is a private, bilateral contract between the SI and the client.

This model can offer benefits such as speed and certainty of execution, as the liquidity is self-contained. For the client, the transaction is with a single, known counterparty.

An MTF, conversely, has a best execution obligation that pertains to the fair and orderly functioning of its entire market system. Its duty is to ensure that its rules for matching orders are applied consistently and do not favor one participant over another. The MTF’s role is to facilitate efficient [price discovery](https://prime.greeks.live/area/price-discovery/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) among a diverse set of participants.

It is a neutral ground where liquidity from various sources can interact. The best execution focus for a firm using an MTF is on how effectively the venue’s rules and participant structure allow it to achieve an optimal outcome based on the full range of [execution factors](https://prime.greeks.live/area/execution-factors/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite).

> The core difference lies in the counterparty ▴ an SI is the counterparty, while an MTF facilitates interaction between multiple counterparties.

![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)

## Implications for Order Handling and Transparency

The differing models have profound implications for pre-trade and post-trade transparency. An SI is required to make firm quotes public for liquid instruments up to a certain size. This provides a degree of pre-trade transparency. However, the actual execution is off-book.

An MTF, as a lit venue, typically displays a [central limit order book](https://prime.greeks.live/area/central-limit-order-book/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), offering a continuous view of pre-trade liquidity to all participants. Post-trade, both venue types have reporting obligations, but the nature of the reported data and its interpretation can differ. For an SI, the data reflects its own pricing decisions. For an MTF, the data reflects the outcome of multilateral interaction. This distinction is a critical input for an investment firm’s [execution quality](https://prime.greeks.live/area/execution-quality/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) analysis and its strategic decisions about where to seek liquidity.

![A complex, faceted geometric object, symbolizing a Principal's operational framework for institutional digital asset derivatives. Its translucent blue sections represent aggregated liquidity pools and RFQ protocol pathways, enabling high-fidelity execution and price discovery](https://options.greeks.live/wp-content/uploads/2025/08/principals-prime-os-digital-asset-derivatives-rfq-execution.jpg)

![A central reflective sphere, representing a Principal's algorithmic trading core, rests within a luminous liquidity pool, intersected by a precise execution bar. This visualizes price discovery for digital asset derivatives via RFQ protocols, reflecting market microstructure optimization within an institutional grade Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/principal-rfq-engine-for-digital-asset-derivatives-best-execution.jpg)

## Strategy

Developing a sophisticated execution strategy requires a deep understanding of how the best execution obligations of [Systematic Internalisers](https://prime.greeks.live/area/systematic-internalisers/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) and [Multilateral Trading Facilities](https://prime.greeks.live/area/multilateral-trading-facilities/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) translate into practical advantages and constraints. The choice between directing an order to an SI or an MTF is a strategic decision, influenced by the specific characteristics of the order, the prevailing market conditions, and the overarching goals of the trading desk. The MiFID II framework, by establishing these two distinct venue types, provides firms with a toolkit for navigating the fragmented European liquidity landscape. A successful strategy hinges on knowing which tool to use for a given task.

![Symmetrical, institutional-grade Prime RFQ component for digital asset derivatives. Metallic segments signify interconnected liquidity pools and precise price discovery](https://options.greeks.live/wp-content/uploads/2025/07/principals-prime-os-for-digital-asset-derivatives-rfq-execution.jpg)

## Framework for Venue Selection

An investment firm’s [order execution policy](https://prime.greeks.live/area/order-execution-policy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) must detail the factors used to select a venue to achieve the best possible result for its clients. This policy is the strategic blueprint for order routing. The decision-making process involves a qualitative and quantitative assessment of various execution factors. While price and cost are highly important, factors like speed, likelihood of execution, and [market impact](https://prime.greeks.live/area/market-impact/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) can take precedence, particularly for large or illiquid orders.

- **Systematic Internalisers** ▴ SIs are often strategically employed for their ability to provide certainty of execution and minimize market impact. Since the SI trades as principal, it can absorb a large order without signaling the client’s intent to the broader market. This is particularly valuable for sensitive orders where information leakage could lead to adverse price movements. The best execution analysis for an SI focuses on the quality of the quoted price relative to the [prevailing market](https://prime.greeks.live/question/how-can-a-firm-quantitatively-demonstrate-that-its-quotes-reflect-prevailing-market-conditions/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) price on primary exchanges and MTFs, along with any explicit fees.

- **[Multilateral Trading](https://prime.greeks.live/area/multilateral-trading/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) Facilities** ▴ MTFs are central to strategies focused on accessing a diverse pool of liquidity and achieving [price improvement](https://prime.greeks.live/area/price-improvement/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) through order book interaction. For liquid, smaller-sized orders, an MTF’s central limit order book can offer competitive pricing from a wide range of market participants. The strategic consideration here is the quality of the MTF’s matching engine, the diversity of its participants, and the depth of its order book. Best execution analysis for an MTF involves assessing the effective spread, the frequency of price improvement, and the fill rates for different order types.

![Two reflective, disc-like structures, one tilted, one flat, symbolize the Market Microstructure of Digital Asset Derivatives. This metaphor encapsulates RFQ Protocols and High-Fidelity Execution within a Liquidity Pool for Price Discovery, vital for a Principal's Operational Framework ensuring Atomic Settlement](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-high-fidelity-execution-liquidity-aggregation-optimizing-market-microstructure-principal-trading-best-execution-atomic-settlement.jpg)

## Comparative Analysis of Execution Factors

The relative importance of the best execution factors often dictates the choice between an SI and an MTF. The following table provides a strategic comparison:

| Execution Factor | Systematic Internaliser (SI) Strategic View | Multilateral Trading Facility (MTF) Strategic View |
| --- | --- | --- |
| Price | The SI’s quoted price is the primary determinant. Best execution is assessed by comparing this price to the market consensus at the time of the trade. The potential for price improvement is limited to the SI’s pricing engine. | Price is discovered through the interaction of multiple orders. There is potential for price improvement if an order can execute against a better-priced order on the book. The focus is on the effective spread and the depth of liquidity at various price levels. |
| Costs | Costs are typically explicit, in the form of a commission or embedded in the spread. The transparency of the all-in cost is a key strategic consideration. | Costs include exchange fees, clearing fees, and potentially commissions. The fee structure can be complex, with different rates for passive and aggressive orders. |
| Speed and Likelihood of Execution | Execution can be nearly instantaneous if the SI is willing to take on the trade. The likelihood of execution is high for standard order sizes in liquid instruments, as the SI is the direct counterparty. | Speed depends on the matching engine’s latency and the availability of contra-side liquidity. The likelihood of execution is a function of the order’s price and the state of the order book. There is a risk of partial fills or no fill if liquidity is thin. |
| Market Impact | A primary strategic advantage. Executing large orders with an SI can significantly reduce market impact, as the trade is not displayed on a public order book pre-trade. | Executing a large order on an MTF can have a significant market impact, as it signals trading intent to all participants. Strategies like algorithmic slicing are often used to mitigate this risk. |

![A sleek, multi-component mechanism features a light upper segment meeting a darker, textured lower part. A diagonal bar pivots on a circular sensor, signifying High-Fidelity Execution and Price Discovery via RFQ Protocols for Digital Asset Derivatives](https://options.greeks.live/wp-content/uploads/2025/07/precision-engineered-institutional-digital-asset-derivatives-rfq-execution-microstructure-for-optimal-price-discovery-and-atomic-settlement-with-prime-os-integration.jpg)

## Reporting as a Strategic Tool

The reporting requirements [under MiFID](https://prime.greeks.live/question/what-are-the-operational-consequences-of-misreporting-under-mifid-ii-versus-a-reporting-failure-under-emir/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) II, specifically RTS 27 for venues and RTS 28 for investment firms, are not merely compliance exercises. They are sources of strategic intelligence. By analyzing RTS 27 reports from SIs and MTFs, a firm can quantitatively assess the execution quality offered by different venues. This data allows for a more informed and dynamic [order routing](https://prime.greeks.live/area/order-routing/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) policy.

Similarly, the firm’s own [RTS 28](https://prime.greeks.live/area/rts-28/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) report, which details its top five execution venues, serves as a public declaration of its [execution strategy](https://prime.greeks.live/area/execution-strategy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). It forces the firm to justify its venue choices and demonstrate that it is consistently acting in its clients’ best interests. A sophisticated firm will use this reporting framework to create a feedback loop, continuously refining its execution strategy based on empirical data.

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![A futuristic system component with a split design and intricate central element, embodying advanced RFQ protocols. This visualizes high-fidelity execution, precise price discovery, and granular market microstructure control for institutional digital asset derivatives, optimizing liquidity provision and minimizing slippage](https://options.greeks.live/wp-content/uploads/2025/07/advanced-rfq-protocols-for-digital-asset-derivatives-price-discovery.jpg)

## Execution

The operational execution of best [execution obligations](https://prime.greeks.live/question/how-do-regulatory-frameworks-like-mifid-ii-impact-rfq-execution-and-best-execution-obligations/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) for Systematic Internalisers and Multilateral [Trading Facilities](https://prime.greeks.live/question/how-do-systematic-internalisers-and-organised-trading-facilities-differ-in-their-application-of-rfq-transparency-rules/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) requires a robust infrastructure of policies, procedures, and data analysis. The theoretical distinctions between these venue types manifest in concrete, day-to-day operational workflows for trading desks, compliance departments, and technology teams. A firm’s ability to navigate these operational complexities is a direct determinant of its capacity to consistently deliver and evidence best execution for its clients.

![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)

## Operationalizing Order Execution Policies

An investment firm’s order [execution policy](https://prime.greeks.live/area/execution-policy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) is the central document governing its operational approach. This policy must be a living document, subject to regular review and updates based on performance analysis. The operationalization of this policy involves several key steps:

- **Venue Due Diligence** ▴ Before including any SI or MTF in its execution policy, a firm must conduct thorough due diligence. This involves reviewing the venue’s rulebook, fee schedule, and operational resilience. For an SI, this also includes an assessment of its creditworthiness as a counterparty.

- **Smart Order Router (SOR) Configuration** ▴ The logic of the execution policy is encoded into the firm’s SOR. The SOR’s configuration determines how orders are routed based on factors like instrument type, order size, and prevailing market conditions. The SOR must be able to dynamically assess liquidity and pricing across a range of SIs and MTFs to make an optimal routing decision in real-time.

- **[Transaction Cost Analysis](https://prime.greeks.live/area/transaction-cost-analysis/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (TCA)** ▴ A rigorous TCA process is essential for monitoring the effectiveness of the execution policy. TCA goes beyond simple price comparisons, analyzing factors like slippage, market impact, and opportunity cost. The outputs of the TCA process provide the quantitative basis for refining the SOR’s logic and updating the execution policy.

![Translucent rods, beige, teal, and blue, intersect on a dark surface, symbolizing multi-leg spread execution for digital asset derivatives. Nodes represent atomic settlement points within a Principal's operational framework, visualizing RFQ protocol aggregation, cross-asset liquidity streams, and optimized market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-derivatives-rfq-protocol-aggregation-and-high-fidelity-execution.jpg)

## The Data-Driven Mandate of RTS 27 and RTS 28

The Regulatory Technical Standards (RTS) 27 and 28 impose significant data reporting obligations that are at the heart of the [MiFID II](https://prime.greeks.live/area/mifid-ii/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) best execution regime. These reports provide the raw material for a data-driven approach to execution quality monitoring.

**[RTS 27](https://prime.greeks.live/area/rts-27/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) ▴ Venue Execution Quality Reports**

Both SIs and MTFs are required to publish quarterly RTS 27 reports. These reports provide detailed, standardized data on execution quality. The table below illustrates some of the key data points required in an RTS 27 report, highlighting the subtle differences in what this data represents for an SI versus an MTF.

| RTS 27 Data Field | Interpretation for a Systematic Internaliser (SI) | Interpretation for a Multilateral Trading Facility (MTF) |
| --- | --- | --- |
| Price | Provides data on the prices quoted by the SI and the prices at which trades were executed. This allows for an analysis of how the SI’s quotes compare to market reference prices. | Provides data on the best bid and offer on the MTF’s order book at various points in time, as well as the prices of executed trades. This allows for an analysis of the effective spread and the frequency of price improvement. |
| Likelihood of Execution | Reports on the number of orders received versus the number of orders executed. This provides insight into the SI’s willingness to trade at its quoted prices. | Reports on the number and value of orders executed on the venue. This reflects the overall liquidity and activity level of the MTF. |
| Speed of Execution | Measures the time from when an order is received to when it is executed. For an SI, this is a measure of its internal processing speed. | Measures the time from when an order is received to when it is matched. This is a measure of the matching engine’s latency. |
| Costs | Details any explicit fees or commissions charged by the SI. Also includes data on any post-trade settlement costs. | Details the MTF’s trading fees, clearing fees, and any other applicable charges. |

> RTS 27 reports are the foundational data layer for any quantitative comparison of execution venue performance.

**RTS 28 ▴ Firm’s Top Execution Venues Reports**

Annually, investment firms must publish an RTS 28 report for each class of financial instrument. This report details the top five execution venues used for client orders and provides a summary of the execution quality analysis that supports the firm’s venue choices. This report operationalizes the firm’s accountability for its execution strategy.

It requires the firm to synthesize its TCA and venue analysis into a public-facing document that justifies its routing decisions. The process of preparing an RTS 28 report forces a firm to critically evaluate its performance and demonstrate a systematic approach to achieving best execution.

![Precision-engineered institutional grade components, representing prime brokerage infrastructure, intersect via a translucent teal bar embodying a high-fidelity execution RFQ protocol. This depicts seamless liquidity aggregation and atomic settlement for digital asset derivatives, reflecting complex market microstructure and efficient price discovery](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-prime-os-core.jpg)

## Compliance and Monitoring in Practice

The compliance function plays a critical role in overseeing the firm’s adherence to its best execution obligations. This involves:

- **Regular Audits** ▴ Conducting periodic audits of the firm’s trading activity to ensure that it aligns with the stated execution policy.

- **Policy Review** ▴ Leading the annual review of the [order execution](https://prime.greeks.live/area/order-execution/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) policy, incorporating feedback from the trading desk, TCA analysis, and changes in the market structure.

- **Record Keeping** ▴ Ensuring that detailed records are kept of all client orders and executions, sufficient to demonstrate to regulators that the firm has taken all sufficient steps to achieve the best possible result.

Ultimately, the execution of best execution obligations is an ongoing, iterative process. It requires a close integration of trading, technology, and compliance, all working from a common, data-driven understanding of execution quality. The distinction between SIs and MTFs is not just a regulatory nuance; it is a fundamental architectural choice that shapes every aspect of this operational process.

![Interconnected, sharp-edged geometric prisms on a dark surface reflect complex light. This embodies the intricate market microstructure of institutional digital asset derivatives, illustrating RFQ protocol aggregation for block trade execution, price discovery, and high-fidelity execution within a Principal's operational framework enabling optimal liquidity](https://options.greeks.live/wp-content/uploads/2025/07/precision-geometric-prisms-reflecting-institutional-digital-asset-derivatives-rfq-price-discovery-and-optimized-execution-market-microstructure.jpg)

## References

- European Securities and Markets Authority. (2017). Questions and Answers on MiFID II and MiFIR investor protection and intermediaries topics. ESMA35-43-349.

- Planet Compliance. (2024). In a nutshell ▴ Best Execution under MiFID II/MiFIR.

- European Securities and Markets Authority. (2007). CESR’s Level 3 guidelines on Best Execution under MiFID. CESR/07-320b.

- Reed Smith LLP. (2014). MiFID II ▴ Multilateral trading venues and systematic internalisers.

- Risk.net. (2016). Dealer-run platforms face hard choices under Mifid II.

![A textured spherical digital asset, resembling a lunar body with a central glowing aperture, is bisected by two intersecting, planar liquidity streams. This depicts institutional RFQ protocol, optimizing block trade execution, price discovery, and multi-leg options strategies with high-fidelity execution within a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-optimized-rfq-execution-protocol-dynamic-liquidity-management.jpg)

## Reflection

The granular distinctions in best execution obligations between Systematic Internalisers and Multilateral Trading Facilities are components of a larger market architecture. A comprehensive understanding of these differences allows for the construction of a more resilient and adaptive execution framework. The true strategic advantage emerges not from simply choosing one venue type over another, but from developing an operational system that can intelligently leverage the unique attributes of each.

This requires a synthesis of regulatory knowledge, quantitative analysis, and technological capability. The ultimate goal is to build an execution process that is not merely compliant, but is a source of competitive strength, capable of navigating the complexities of modern market structures to consistently achieve superior outcomes.

![Two distinct ovular components, beige and teal, slightly separated, reveal intricate internal gears. This visualizes an Institutional Digital Asset Derivatives engine, emphasizing automated RFQ execution, complex market microstructure, and high-fidelity execution within a Principal's Prime RFQ for optimal price discovery and block trade capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-automated-rfq-execution-microstructure-revealing-principal-prime-os-intelligence-layer-for-high-fidelity-execution-and-capital-efficiency.jpg)

## Glossary

<a href="https://prime.greeks.live/area/multilateral-trading-facility/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Interlocking transparent and opaque geometric planes on a dark surface. This abstract form visually articulates the intricate Market Microstructure of Institutional Digital Asset Derivatives, embodying High-Fidelity Execution through advanced RFQ protocols](https://options.greeks.live/wp-content/uploads/2025/07/geometric-abstraction-of-institutional-digital-asset-derivatives-market-microstructure-driving-high-fidelity-execution-via-principal-rfq-protocols-and-optimal-liquidity-aggregation.jpg)

## Multilateral Trading Facility

Meaning ▴ A Multilateral Trading Facility is a regulated trading system operated by an investment firm or market operator that brings together multiple third-party buying and selling interests in financial instruments, typically operating under discretionary rules rather than a formal exchange. </a><a href="https://prime.greeks.live/area/systematic-internaliser/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Precision-engineered modular components, resembling stacked metallic and composite rings, illustrate a robust institutional grade crypto derivatives OS. Each layer signifies distinct market microstructure elements within a RFQ protocol, representing aggregated inquiry for multi-leg spreads and high-fidelity execution across diverse liquidity pools](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-multi-layered-algorithmic-rfq-liquidity-aggregation.jpg)

## Systematic Internaliser

Meaning ▴ A Systematic Internaliser (SI) is a financial institution executing client orders against its own capital on an organized, frequent, systematic basis off-exchange. </a><a href="https://prime.greeks.live/area/best-execution-obligations/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A modular, spherical digital asset derivatives intelligence core, featuring a glowing teal central lens, rests on a stable dark base. This represents the precision RFQ protocol execution engine, facilitating high-fidelity execution and robust price discovery within an institutional principal's operational framework](https://options.greeks.live/wp-content/uploads/2025/07/principal-trading-digital-asset-derivatives-rfq-execution-core.jpg)

## Best Execution Obligations

Meaning ▴ Best Execution Obligations define the regulatory and fiduciary imperative for financial intermediaries to achieve the most favorable terms reasonably available for client orders. </a><a href="https://prime.greeks.live/area/prevailing-market-conditions/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A light sphere, representing a Principal's digital asset, is integrated into an angular blue RFQ protocol framework. Sharp fins symbolize high-fidelity execution and price discovery](https://options.greeks.live/wp-content/uploads/2025/07/principals-core-asset-rfq-protocol-framework-for-digital-derivatives.jpg)

## Prevailing Market Conditions

Meaning ▴ Prevailing Market Conditions refers to the aggregate, real-time state of quantitative and qualitative factors influencing asset valuation and transaction dynamics within a specific market segment, encompassing elements such as liquidity, volatility, order book depth, bid-ask spreads, and relevant macroeconomic indicators. </a><a href="https://prime.greeks.live/area/best-execution/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Abstract forms representing a Principal-to-Principal negotiation within an RFQ protocol. The precision of high-fidelity execution is evident in the seamless interaction of components, symbolizing liquidity aggregation and market microstructure optimization for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-protocol-execution-engine.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/area/price-discovery/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, light-colored, egg-shaped component precisely connects to a darker, ergonomic base, signifying high-fidelity integration. This modular design embodies an institutional-grade Crypto Derivatives OS, optimizing RFQ protocols for atomic settlement and best execution within a robust Principal's operational framework, enhancing market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-core-principal-system.jpg)

## Price Discovery

Meaning ▴ Price discovery is the continuous, dynamic process by which the market determines the fair value of an asset through the collective interaction of supply and demand. </a><a href="https://prime.greeks.live/area/execution-factors/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, multi-segmented sphere embodies a Principal's operational framework for institutional digital asset derivatives. Its transparent 'intelligence layer' signifies high-fidelity execution and price discovery via RFQ protocols](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-rfq-protocol-digital-asset-derivatives-execution-engine.jpg)

## Execution Factors

Meaning ▴ Execution Factors are the quantifiable, dynamic variables that directly influence the outcome and quality of a trade execution within institutional digital asset markets. </a><a href="https://prime.greeks.live/area/central-limit-order-book/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A metallic, reflective disc, symbolizing a digital asset derivative or tokenized contract, rests on an intricate Principal's operational framework. This visualizes the market microstructure for high-fidelity execution of institutional digital assets, emphasizing RFQ protocol precision, atomic settlement, and capital efficiency](https://options.greeks.live/wp-content/uploads/2025/08/high-fidelity-digital-asset-derivatives-rfq-protocol-system-infrastructure.jpg)

## Central Limit Order Book

Meaning ▴ A Central Limit Order Book is a digital repository that aggregates all outstanding buy and sell orders for a specific financial instrument, organized by price level and time of entry. </a><a href="https://prime.greeks.live/area/execution-quality/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Abstract spheres and a sharp disc depict an Institutional Digital Asset Derivatives ecosystem. A central Principal's Operational Framework interacts with a Liquidity Pool via RFQ Protocol for High-Fidelity Execution](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-framework.jpg)

## Execution Quality

Meaning ▴ Execution Quality quantifies the efficacy of an order's fill, assessing how closely the achieved trade price aligns with the prevailing market price at submission, alongside consideration for speed, cost, and market impact. </a><a href="https://prime.greeks.live/area/multilateral-trading-facilities/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Two sleek, distinct colored planes, teal and blue, intersect. Dark, reflective spheres at their cross-points symbolize critical price discovery nodes](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-multi-leg-execution-liquidity.jpg)

## Multilateral Trading Facilities

Meaning ▴ Multilateral Trading Facilities, or MTFs, are regulated trading venues designed to facilitate the multilateral matching of third-party buying and selling interests in financial instruments. </a><a href="https://prime.greeks.live/area/systematic-internalisers/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Glossy, intersecting forms in beige, blue, and teal embody RFQ protocol efficiency, atomic settlement, and aggregated liquidity for institutional digital asset derivatives. The sleek design reflects high-fidelity execution, prime brokerage capabilities, and optimized order book dynamics for capital efficiency](https://options.greeks.live/wp-content/uploads/2025/08/precision-engineered-digital-asset-derivatives-execution-via-optimized-rfq-protocols-enhancing-principal-operational-frameworks.jpg)

## Systematic Internalisers

Meaning ▴ A market participant, typically a broker-dealer, systematically executing client orders against its own inventory or other client orders off-exchange, acting as principal. </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">
![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](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-protocol-core-engine-for-best-execution.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/market-impact/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, abstract system interface with a central spherical lens representing real-time Price Discovery and Implied Volatility analysis for institutional Digital Asset Derivatives. Its precise contours signify High-Fidelity Execution and robust RFQ protocol orchestration, managing latent liquidity and minimizing slippage for optimized Alpha Generation](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-institutional-digital-asset-derivatives-execution-via-optimized-rfq-protocols-enhancing-market-microstructure.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-can-a-firm-quantitatively-demonstrate-that-its-quotes-reflect-prevailing-market-conditions/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A central glowing blue mechanism with a precision reticle is encased by dark metallic panels. This symbolizes an institutional-grade Principal's operational framework for high-fidelity execution of digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/precision-core-enabling-institutional-digital-asset-derivatives-rfq-execution.jpg)

## Prevailing Market

A firm proves its quotes reflect market conditions by systematically benchmarking them against a synthesized, multi-factor market price. </a><a href="https://prime.greeks.live/area/multilateral-trading/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Metallic hub with radiating arms divides distinct quadrants. This abstractly depicts a Principal's operational framework for high-fidelity execution of institutional digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-derivatives-rfq-execution-prime-os-market-microstructure.jpg)

## Multilateral Trading

Meaning ▴ Multilateral trading defines a market structure where multiple buyers and sellers interact simultaneously through a centralized system to discover price and execute transactions. </a><a href="https://prime.greeks.live/area/price-improvement/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A chrome cross-shaped central processing unit rests on a textured surface, symbolizing a Principal's institutional grade execution engine. It integrates multi-leg options strategies and RFQ protocols, leveraging real-time order book dynamics for optimal price discovery in digital asset derivatives, minimizing slippage and maximizing capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/principals-high-fidelity-rfq-execution-digital-asset-derivatives-hub.jpg)

## Price Improvement

Meaning ▴ Price improvement denotes the execution of a trade at a more advantageous price than the prevailing National Best Bid and Offer (NBBO) at the moment of order submission. </a><a href="https://prime.greeks.live/area/order-routing/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A central, metallic, multi-bladed mechanism, symbolizing a core execution engine or RFQ hub, emits luminous teal data streams. These streams traverse through fragmented, transparent structures, representing dynamic market microstructure, high-fidelity price discovery, and liquidity aggregation](https://options.greeks.live/wp-content/uploads/2025/07/principal-grade-digital-asset-derivatives-rfq-protocol-engine-facilitating-high-fidelity-execution-and-optimal-price-discovery-across-fragmented-market-microstructure.jpg)

## Order Routing

Meaning ▴ Order Routing is the automated process by which a trading order is directed from its origination point to a specific execution venue or liquidity source. </a><a href="https://prime.greeks.live/question/what-are-the-operational-consequences-of-misreporting-under-mifid-ii-versus-a-reporting-failure-under-emir/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A multi-segmented sphere symbolizes institutional digital asset derivatives. One quadrant shows a dynamic implied volatility surface](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-liquidity-management.jpg)

## Under Mifid

A MiFID II misreport corrupts market surveillance data; an EMIR failure hides systemic risk, creating distinct operational and reputational threats. </a><a href="https://prime.greeks.live/area/execution-strategy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Precision-engineered system components in beige, teal, and metallic converge at a vibrant blue interface. This symbolizes a critical RFQ protocol junction within an institutional Prime RFQ, facilitating high-fidelity execution and atomic settlement for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/principal-rfq-connectivity-layer-for-digital-asset-derivatives-execution.jpg)

## Execution Strategy

Meaning ▴ A defined algorithmic or systematic approach to fulfilling an order in a financial market, aiming to optimize specific objectives like minimizing market impact, achieving a target price, or reducing transaction costs. </a><a href="https://prime.greeks.live/area/rts-28/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Two distinct, polished spherical halves, beige and teal, reveal intricate internal market microstructure, connected by a central metallic shaft. This embodies an institutional-grade RFQ protocol for digital asset derivatives, enabling high-fidelity execution and atomic settlement across disparate liquidity pools for principal block trades](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-high-fidelity-execution-prime-os.jpg)

## Rts 28

Meaning ▴ RTS 28 refers to Regulatory Technical Standard 28 under MiFID II, which mandates investment firms and market operators to publish annual reports on the quality of execution of transactions on trading venues and for financial instruments. </a><a href="https://prime.greeks.live/question/how-do-regulatory-frameworks-like-mifid-ii-impact-rfq-execution-and-best-execution-obligations/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![An abstract, precisely engineered construct of interlocking grey and cream panels, featuring a teal display and control. This represents an institutional-grade Crypto Derivatives OS for RFQ protocols, enabling high-fidelity execution, liquidity aggregation, and market microstructure optimization within a Principal's operational framework for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/08/integrated-principal-trading-system-modules-for-institutional-digital-asset-derivatives-rfq-execution-and-optimized-market-microstructure.jpg)

## Execution Obligations

MiFID II mandates that RFQ protocols evolve from discretionary conversations into auditable, data-driven demonstrations of best execution. </a><a href="https://prime.greeks.live/question/how-do-systematic-internalisers-and-organised-trading-facilities-differ-in-their-application-of-rfq-transparency-rules/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![The image depicts two distinct liquidity pools or market segments, intersected by algorithmic trading pathways. A central dark sphere represents price discovery and implied volatility within the market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-derivatives-rfq-multi-leg-spread-execution-microstructure.jpg)

## Trading Facilities

SIs are disclosed principals in a bilateral trade; OTFs are discretionary multilateral venues offering pre-trade anonymity to quoters. </a><a href="https://prime.greeks.live/area/execution-policy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![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)

## Execution Policy

Meaning ▴ An Execution Policy defines a structured set of rules and computational logic governing the handling and execution of financial orders within a trading system. </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">
![Abstract layers and metallic components depict institutional digital asset derivatives market microstructure. They symbolize multi-leg spread construction, robust FIX Protocol for high-fidelity execution, and private quotation](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-digital-asset-derivatives-rfq-protocol-high-fidelity-execution.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/mifid-ii/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A dark, reflective surface displays a luminous green line, symbolizing a high-fidelity RFQ protocol channel within a Crypto Derivatives OS. This signifies precise price discovery for digital asset derivatives, ensuring atomic settlement and optimizing portfolio margin](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-pathway-optimizing-principal-liquidity-and-capital-efficiency.jpg)

## Mifid Ii

Meaning ▴ MiFID II, the Markets in Financial Instruments Directive II, constitutes a comprehensive regulatory framework enacted by the European Union to govern financial markets, investment firms, and trading venues. </a><a href="https://prime.greeks.live/area/rts-27/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sophisticated, modular mechanical assembly illustrates an RFQ protocol for institutional digital asset derivatives. Reflective elements and distinct quadrants symbolize dynamic liquidity aggregation and high-fidelity execution for Bitcoin options](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-protocol-architecture.jpg)

## Rts 27

Meaning ▴ RTS 27 mandates that investment firms and market operators publish detailed data on the quality of execution of transactions on their venues. </a><a href="https://prime.greeks.live/area/order-execution/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A luminous digital market microstructure diagram depicts intersecting high-fidelity execution paths over a transparent liquidity pool. A central RFQ engine processes aggregated inquiries for institutional digital asset derivatives, optimizing price discovery and capital efficiency within a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-high-fidelity-execution-principal-operational-framework-price-discovery.jpg)

## Order Execution

Meaning ▴ Order Execution defines the precise operational sequence that transforms a Principal's trading intent into a definitive, completed transaction within a digital asset market. </a>

**Tags:** [Multilateral Trading Facility](https://options.greeks.live/area/multilateral-trading-facility/), [Systematic Internalisers](https://options.greeks.live/area/systematic-internalisers/), [Transaction Cost Analysis](https://options.greeks.live/area/transaction-cost-analysis/), [Systematic Internaliser](https://options.greeks.live/area/systematic-internaliser/), [Best Execution](https://options.greeks.live/area/best-execution/), [Execution Quality](https://options.greeks.live/area/execution-quality/)	

## Discover More

- 
### [How Does the Role of a Systematic Internaliser Affect a Firm’s Best Execution Strategy?](https://options.greeks.live/question/how-does-the-role-of-a-systematic-internaliser-affect-a-firms-best-execution-strategy/)
![An abstract, precisely engineered construct of interlocking grey and cream panels, featuring a teal display and control. This represents an institutional-grade Crypto Derivatives OS for RFQ protocols, enabling high-fidelity execution, liquidity aggregation, and market microstructure optimization within a Principal's operational framework for digital asset derivatives.](https://options.greeks.live/wp-content/uploads/2025/08/integrated-principal-trading-system-modules-for-institutional-digital-asset-derivatives-rfq-execution-and-optimized-market-microstructure.jpg)

A Systematic Internaliser reshapes best execution by offering a principal-based liquidity source that can reduce market impact and costs.

- 
### [How Does the Best Execution Obligation Change When Dealing with Different Client Categories under Mifid Ii?](https://options.greeks.live/question/how-does-the-best-execution-obligation-change-when-dealing-with-different-client-categories-under-mifid-ii/)
![A precision-engineered, multi-layered system component, symbolizing the intricate market microstructure of institutional digital asset derivatives. Two distinct probes represent RFQ protocols for price discovery and high-fidelity execution, integrating latent liquidity and pre-trade analytics within a robust Prime RFQ framework, ensuring best execution.](https://options.greeks.live/wp-content/uploads/2025/08/digital-asset-derivatives-rfq-protocols-high-fidelity-execution.jpg)

MiFID II calibrates best execution obligations to client sophistication, demanding a tiered operational system.

- 
### [How Do Regulatory Frameworks like MiFID II Influence the Measurement of Best Execution and Leakage?](https://options.greeks.live/question/how-do-regulatory-frameworks-like-mifid-ii-influence-the-measurement-of-best-execution-and-leakage/)
![A precisely engineered central blue hub anchors segmented grey and blue components, symbolizing a robust Prime RFQ for institutional trading of digital asset derivatives. This structure represents a sophisticated RFQ protocol engine, optimizing liquidity pool aggregation and price discovery through advanced market microstructure for high-fidelity execution and private quotation.](https://options.greeks.live/wp-content/uploads/2025/08/prime-os-digital-asset-derivatives-rfq-execution-core-systemic-hub.jpg)

MiFID II mandates a shift to a data-driven, evidence-based system for proving optimal execution and managing information leakage.

- 
### [How Does MiFID II Define Best Execution for Smart Order Routers?](https://options.greeks.live/question/how-does-mifid-ii-define-best-execution-for-smart-order-routers/)
![A sleek, metallic, X-shaped object with a central circular core floats above mountains at dusk. It signifies an institutional-grade Prime RFQ for digital asset derivatives, enabling high-fidelity execution via RFQ protocols, optimizing price discovery and capital efficiency across dark pools for best execution.](https://options.greeks.live/wp-content/uploads/2025/07/advanced-principal-rfq-protocol-architecture-for-institutional-digital-asset-derivatives-optimal-price-discovery-and-execution.jpg)

MiFID II requires SORs to systematically process multiple execution factors to demonstrably achieve the best possible client result.

- 
### [How Does MiFID II Quantify the Vague Concept of Best Execution?](https://options.greeks.live/question/how-does-mifid-ii-quantify-the-vague-concept-of-best-execution/)
![A modular, institutional-grade device with a central data aggregation interface and metallic spigot. This Prime RFQ represents a robust RFQ protocol engine, enabling high-fidelity execution for institutional digital asset derivatives, optimizing capital efficiency and best execution.](https://options.greeks.live/wp-content/uploads/2025/08/principals-institutional-digital-asset-derivatives-prime-os-for-optimized-rfq-protocol-best-execution-system.jpg)

MiFID II quantifies best execution by mandating a data-driven system where firms must prove adherence to a client-agreed policy.

- 
### [How Does MiFID II Influence TCA and Best Execution Requirements?](https://options.greeks.live/question/how-does-mifid-ii-influence-tca-and-best-execution-requirements/)
![A central RFQ engine orchestrates diverse liquidity pools, represented by distinct blades, facilitating high-fidelity execution of institutional digital asset derivatives. Metallic rods signify robust FIX protocol connectivity, enabling efficient price discovery and atomic settlement for Bitcoin options.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-liquidity-orchestration.jpg)

MiFID II codifies best execution as a multi-factor, data-driven discipline, making TCA the core engine for proving compliance.

- 
### [How Do Systematic Internalisers and Dark Pools Fit into a Best Execution Framework under MiFID II?](https://options.greeks.live/question/how-do-systematic-internalisers-and-dark-pools-fit-into-a-best-execution-framework-under-mifid-ii/)
![Translucent rods, beige, teal, and blue, intersect on a dark surface, symbolizing multi-leg spread execution for digital asset derivatives. Nodes represent atomic settlement points within a Principal's operational framework, visualizing RFQ protocol aggregation, cross-asset liquidity streams, and optimized market microstructure.](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-derivatives-rfq-protocol-aggregation-and-high-fidelity-execution.jpg)

Systematic Internalisers and Dark Pools are integral MiFID II components for managing market impact through distinct execution protocols.

- 
### [How Does MiFID II Define the Best Execution Obligations for SIs?](https://options.greeks.live/question/how-does-mifid-ii-define-the-best-execution-obligations-for-sis/)
![Abstract forms depict institutional liquidity aggregation and smart order routing. Intersecting dark bars symbolize RFQ protocols enabling atomic settlement for multi-leg spreads, ensuring high-fidelity execution and price discovery of digital asset derivatives.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-high-fidelity-execution-2.jpg)

MiFID II obligates SIs to build a data-driven system proving their execution is the best possible client outcome.

- 
### [How Does MiFID II Redefine the Concept of Best Execution?](https://options.greeks.live/question/how-does-mifid-ii-redefine-the-concept-of-best-execution/)
![A sophisticated internal mechanism of a split sphere reveals the core of an institutional-grade RFQ protocol. Polished surfaces reflect intricate components, symbolizing high-fidelity execution and price discovery within digital asset derivatives. This architecture supports multi-leg spreads and atomic settlement for block trades on a Prime RFQ.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-system.jpg)

MiFID II codifies best execution as an engineering discipline requiring a demonstrable, data-driven system to deliver the best outcome.

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---

**Original URL:** https://options.greeks.live/question/how-do-best-execution-obligations-differ-between-systematic-internalisers-and-mtfs/
