# How Do Firms Evidence Best Execution without RTS 27 Reports? ▴ Question

**Published:** 2025-08-05
**Categories:** Question

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![Sharp, intersecting geometric planes in teal, deep blue, and beige form a precise, pointed leading edge against darkness. This signifies High-Fidelity Execution for Institutional Digital Asset Derivatives, reflecting complex Market Microstructure and Price Discovery](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-digital-asset-derivatives-rfq-market-microstructure-2.jpg)

![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)

## Concept

The decommissioning of [RTS 27](https://prime.greeks.live/area/rts-27/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) reports has created a vacuum in the formal architecture of [best execution](https://prime.greeks.live/area/best-execution/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) oversight. This development does not, however, signal a retreat from the fundamental obligation. Instead, it marks a shift from a prescriptive, standardized reporting model to a more principles-based, firm-specific demonstration of execution quality.

The core challenge for financial institutions is to construct a robust, evidence-based framework that proves they are consistently acting in their clients’ best interests, even without the familiar template of RTS 27. This requires a deeper, more intrinsic integration of best execution principles into the very fabric of a firm’s trading and [compliance](https://prime.greeks.live/area/compliance/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) operations.

At its heart, best execution is a holistic concept that extends far beyond simply achieving the best price on a given trade. It encompasses a range of factors, including costs, speed, likelihood of execution and settlement, size, and any other consideration relevant to the execution of an order. The removal of RTS 27 reporting requirements compels firms to move beyond a check-the-box mentality and to cultivate a more dynamic, data-driven approach to monitoring and evidencing [their execution performance](https://prime.greeks.live/question/can-superior-counterparty-performance-quantification-directly-translate-to-measurably-improved-fund-performance/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). This necessitates a sophisticated understanding of [market microstructure](https://prime.greeks.live/area/market-microstructure/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), a commitment to rigorous data analysis, and the implementation of a comprehensive governance framework.

> The cessation of RTS 27 reporting mandates a transition from standardized compliance to a firm-specific, principles-based demonstration of best execution, demanding a more integrated and data-driven operational framework.

The new paradigm for evidencing best execution rests on three pillars ▴ a clearly defined and consistently applied [execution policy](https://prime.greeks.live/area/execution-policy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), a robust system for monitoring execution quality, and a comprehensive [governance](https://prime.greeks.live/area/governance/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) and oversight process. The execution policy serves as the foundation, outlining the firm’s approach to achieving best execution across different financial instruments and client types. The monitoring system provides the empirical evidence to support the policy, leveraging a range of quantitative and qualitative metrics to assess performance. Finally, the governance process ensures that the entire framework is subject to regular review, challenge, and enhancement.

![A sleek, multi-layered digital asset derivatives platform highlights a teal sphere, symbolizing a core liquidity pool or atomic settlement node. The perforated white interface represents an RFQ protocol's aggregated inquiry points for multi-leg spread execution, reflecting precise market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-core-execution-system.jpg)

![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)

## Strategy

In the absence of RTS 27 reports, a firm’s strategy for evidencing best execution must be both comprehensive and adaptable. It should be designed to withstand regulatory scrutiny while also providing valuable insights that can be used to improve execution outcomes. A key element of this strategy is the development of a sophisticated [Transaction Cost Analysis](https://prime.greeks.live/area/transaction-cost-analysis/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) ([TCA](https://prime.greeks.live/area/tca/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite)) framework.

TCA provides a quantitative basis for assessing [execution performance](https://prime.greeks.live/area/execution-performance/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), allowing firms to measure their results against a variety of benchmarks and to identify areas for improvement. A well-designed TCA program will incorporate a range of metrics, including implementation shortfall, volume-weighted average price (VWAP), and time-weighted average price (TWAP), tailored to the specific characteristics of the asset class and trading strategy.

Beyond [quantitative analysis](https://prime.greeks.live/area/quantitative-analysis/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), a robust best execution strategy must also incorporate a qualitative assessment of execution quality. This involves a more nuanced evaluation of the factors that can impact execution outcomes, such as the choice of execution venue, the use of different order types, and the prevailing market conditions. This [qualitative analysis](https://prime.greeks.live/area/qualitative-analysis/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) should be documented and integrated into the firm’s overall assessment of its execution performance. For example, a firm might conduct regular reviews of its execution venue selection process to ensure that it is considering a wide range of factors, including liquidity, price, and the likelihood of execution.

> A resilient best execution strategy integrates sophisticated Transaction Cost Analysis with qualitative assessments of execution factors, ensuring a holistic and defensible approach to demonstrating performance.

![Two abstract, segmented forms intersect, representing dynamic RFQ protocol interactions and price discovery mechanisms. The layered structures symbolize liquidity aggregation across multi-leg spreads within complex market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-microstructure.jpg)

## What Are the Core Components of a Post-RTS 27 Execution Policy?

A post-RTS 27 execution policy should be a dynamic document that is regularly reviewed and updated to reflect changes in the market and the firm’s business. It should clearly articulate the firm’s approach to achieving best execution and should be tailored to the specific needs of its clients. The following are some of the core components that should be included in a post-RTS 27 execution policy:

- **[Execution Factors](https://prime.greeks.live/area/execution-factors/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite)** ▴ A detailed description of the relative importance the firm assigns to the various execution factors, such as price, costs, speed, and likelihood of execution.

- **[Execution Venues](https://prime.greeks.live/area/execution-venues/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite)** ▴ A comprehensive list of the execution venues the firm uses and an explanation of the criteria used to select them.

- **[Order Handling](https://prime.greeks.live/area/order-handling/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite)** ▴ A clear explanation of how the firm handles client orders, including the use of different order types and the process for managing conflicts of interest.

- **Monitoring and Review** ▴ A description of the firm’s process for monitoring the effectiveness of its execution arrangements and for identifying and remedying any deficiencies.

The table below provides a sample framework for a post-RTS 27 best execution policy, outlining the key components and providing examples of the information that should be included.

### Sample Best Execution Policy Framework

| Component | Description |
| --- | --- |
| Execution Factors | A detailed breakdown of the execution factors and their relative importance for different asset classes and client types. |
| Execution Venues | A list of approved execution venues, along with a due diligence process for adding new venues. |
| Order Handling | A description of the firm’s order routing logic and its process for handling specific client instructions. |
| Monitoring and Review | A schedule for regular reviews of the execution policy and a process for escalating and resolving any issues. |

![Close-up of intricate mechanical components symbolizing a robust Prime RFQ for institutional digital asset derivatives. These precision parts reflect market microstructure and high-fidelity execution within an RFQ protocol framework, ensuring capital efficiency and optimal price discovery for Bitcoin options](https://options.greeks.live/wp-content/uploads/2025/07/engineered-core-systems-driving-institutional-digital-asset-derivatives-rfq-protocol-execution.jpg)

![A polished, dark spherical component anchors a sophisticated system architecture, flanked by a precise green data bus. This represents a high-fidelity execution engine, enabling institutional-grade RFQ protocols for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/precision-engineered-institutional-digital-asset-derivatives-rfq-core.jpg)

## Execution

The execution of a [best execution framework](https://prime.greeks.live/area/best-execution-framework/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) in a post-RTS 27 world requires a significant investment in technology, data, and human expertise. Firms must be able to capture, store, and analyze large volumes of trading data in order to effectively monitor their execution performance. This requires a robust data infrastructure, including a centralized data warehouse and a suite of analytical tools. Firms must also have a team of skilled professionals who are able to interpret the data and to identify meaningful insights.

A key component of the [execution framework](https://prime.greeks.live/area/execution-framework/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) is the development of a comprehensive suite of best execution reports. These reports should be designed to provide a clear and concise overview of the firm’s execution performance and should be tailored to the needs of different stakeholders, including senior management, compliance, and regulators. The reports should include a mix of quantitative and qualitative information and should be produced on a regular basis.

![A circular mechanism with a glowing conduit and intricate internal components represents a Prime RFQ for institutional digital asset derivatives. This system facilitates high-fidelity execution via RFQ protocols, enabling price discovery and algorithmic trading within market microstructure, optimizing capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-institutional-digital-asset-derivatives-rfq-protocol-core.jpg)

## How Can Firms Leverage Technology to Enhance Best Execution Monitoring?

Technology plays a critical role in the execution of a best execution framework. The following are some of the ways that firms can leverage technology to enhance their best execution monitoring capabilities:

- **Automated Data Capture** ▴ Firms can use technology to automate the capture of trading data from a variety of sources, including their order [management system](https://prime.greeks.live/question/what-are-the-system-architecture-requirements-for-integrating-fdid-tagging-into-an-order-management-system/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (OMS), execution management system (EMS), and third-party data providers.

- **Advanced Analytics** ▴ Firms can use advanced analytics tools to identify patterns and trends in their trading data that may not be apparent from a simple review of the data.

- **Real-Time Monitoring** ▴ Firms can use real-time monitoring tools to track their execution performance throughout the trading day and to identify any potential issues as they arise.

The table below provides an overview of the key technologies that can be used to support a best execution framework.

### Best Execution Technology Stack

| Technology | Function |
| --- | --- |
| Order Management System (OMS) | Captures and manages client orders. |
| Execution Management System (EMS) | Provides access to a wide range of execution venues and trading algorithms. |
| Transaction Cost Analysis (TCA) | Analyzes the costs associated with trading and provides insights into execution performance. |
| Data Warehouse | Stores and manages large volumes of trading data. |

![Robust polygonal structures depict foundational institutional liquidity pools and market microstructure. Transparent, intersecting planes symbolize high-fidelity execution pathways for multi-leg spread strategies and atomic settlement, facilitating private quotation via RFQ protocols within a controlled dark pool environment, ensuring optimal price discovery](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-microstructure-prime-os.jpg)

## References

- ICMA. (2021). Response form for the Consultation Paper on Re- view of the MiFID II framework on best execution reports.

- TRAction Fintech. (2024). RTS 27 and 28 ▴ The 2024 Status of These Reports in UK and EU.

- ICMA. (n.d.). MiFID II/R Fixed Income Best Execution Requirements.

- Finance Magnates. (2020). Best Execution and RTS27 and 28 Abandonment in ESMA’s Pipeline.

- ESMA. (2021). ESMA promotes coordinated action on the suspension of best execution reports.

![A stylized RFQ protocol engine, featuring a central price discovery mechanism and a high-fidelity execution blade. Translucent blue conduits symbolize atomic settlement pathways for institutional block trades within a Crypto Derivatives OS, ensuring capital efficiency and best execution](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-rfq-execution-for-digital-asset-derivatives.jpg)

## Reflection

The departure from RTS 27 reporting should not be viewed as a dilution of regulatory expectations. It is an evolution. This new landscape demands a more profound and introspective approach to best execution.

It compels firms to look beyond the prescriptive and to cultivate a culture of continuous improvement, one that is deeply embedded in their operational DNA. The challenge now is to transform the abstract principle of best execution into a tangible, demonstrable, and sustainable competitive advantage.

Ultimately, the effectiveness of a firm’s best execution framework will be judged not by the volume of its reports, but by the quality of its outcomes. In this new era, the firms that will succeed are those that embrace the spirit of the regulation, not just the letter of the law. They are the firms that will invest in the technology, the data, and the people needed to build a truly world-class execution capability. They are the firms that will view best execution not as a compliance burden, but as a strategic imperative.

![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)

## 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 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)

## 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/rts-27/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Sleek, domed institutional-grade interface with glowing green and blue indicators highlights active RFQ protocols and price discovery. This signifies high-fidelity execution within a Prime RFQ for digital asset derivatives, ensuring real-time liquidity and capital efficiency](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-prime-os-execution-interface.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/compliance/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![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)

## Compliance

Meaning ▴ Compliance, within the context of institutional digital asset derivatives, signifies the rigorous adherence to established regulatory mandates, internal corporate policies, and industry best practices governing financial operations. </a><a href="https://prime.greeks.live/question/can-superior-counterparty-performance-quantification-directly-translate-to-measurably-improved-fund-performance/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, metallic algorithmic trading component with a central circular mechanism rests on angular, multi-colored reflective surfaces, symbolizing sophisticated RFQ protocols, aggregated liquidity, and high-fidelity execution within institutional digital asset derivatives market microstructure. This represents the intelligence layer of a Prime RFQ for optimal price discovery](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-system-architecture-for-optimal-price-discovery-and-high-fidelity-execution.jpg)

## Their Execution Performance

Quantifying counterparty execution quality translates directly to fund performance by minimizing costs and preserving alpha. </a><a href="https://prime.greeks.live/area/market-microstructure/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Intricate mechanisms represent a Principal's operational framework, showcasing market microstructure of a Crypto Derivatives OS. Transparent elements signify real-time price discovery and high-fidelity execution, facilitating robust RFQ protocols for institutional digital asset derivatives and options trading](https://options.greeks.live/wp-content/uploads/2025/07/principal-rfq-protocol-engine-for-institutional-digital-asset-derivatives.jpg)

## Market Microstructure

Meaning ▴ Market Microstructure refers to the study of the processes and rules by which securities are traded, focusing on the specific mechanisms of price discovery, order flow dynamics, and transaction costs within a trading venue. </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">
![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)

## 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/governance/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![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)

## Governance

Meaning ▴ Governance defines the structured framework of rules, processes, and controls applied to manage and direct an entity or 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">
![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)

## 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/tca/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![An exposed high-fidelity execution engine reveals the complex market microstructure of an institutional-grade crypto derivatives OS. Precision components facilitate smart order routing and multi-leg spread strategies](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-engine-microstructure-2.jpg)

## Tca

Meaning ▴ Transaction Cost Analysis (TCA) represents a quantitative methodology designed to evaluate the explicit and implicit costs incurred during the execution of financial trades. </a><a href="https://prime.greeks.live/area/execution-performance/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A precise RFQ engine extends into an institutional digital asset liquidity pool, symbolizing high-fidelity execution and advanced price discovery within complex market microstructure. This embodies a Principal's operational framework for multi-leg spread strategies and capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-rfq-engine-interfacing-core-liquidity-system.jpg)

## Execution Performance

Meaning ▴ Execution Performance quantifies trade completion effectiveness and efficiency relative to benchmarks and objectives. </a><a href="https://prime.greeks.live/area/quantitative-analysis/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Two intertwined, reflective, metallic structures with translucent teal elements at their core, converging on a central nexus against a dark background. This represents a sophisticated RFQ protocol facilitating price discovery within digital asset derivatives markets, denoting high-fidelity execution and institutional-grade systems optimizing capital efficiency via latent liquidity and smart order routing across dark pools](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-rfq-execution-system-architecture.jpg)

## Quantitative Analysis

Meaning ▴ Quantitative Analysis involves the application of mathematical, statistical, and computational methods to financial data for the purpose of identifying patterns, forecasting market movements, and making informed investment or trading decisions. </a><a href="https://prime.greeks.live/area/qualitative-analysis/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![The image presents two converging metallic fins, indicative of multi-leg spread strategies, pointing towards a central, luminous teal disk. This disk symbolizes a liquidity pool or price discovery engine, integral to RFQ protocols for institutional-grade digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-institutional-digital-asset-derivatives-rfq-protocol-aggregation.jpg)

## Qualitative Analysis

Meaning ▴ Qualitative Analysis, within the architecture of institutional digital asset derivatives, constitutes the systematic evaluation of non-numeric data to derive contextual insights that inform strategic and tactical decision-making. </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">
![Precisely engineered circular beige, grey, and blue modules stack tilted on a dark base. A central aperture signifies the core RFQ protocol engine](https://options.greeks.live/wp-content/uploads/2025/07/core-prime-os-rfq-engine-digital-asset-derivatives-trading-system-execution.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/execution-venues/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Abstract geometric forms depict a sophisticated RFQ protocol engine. A central mechanism, representing price discovery and atomic settlement, integrates horizontal liquidity streams](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-engine-2.jpg)

## Execution Venues

Meaning ▴ Execution Venues are regulated marketplaces or bilateral platforms where financial instruments are traded and orders are matched, encompassing exchanges, multilateral trading facilities, organized trading facilities, and over-the-counter desks. </a><a href="https://prime.greeks.live/area/order-handling/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Polished metallic surface with a central intricate mechanism, representing a high-fidelity market microstructure engine. Two sleek probes symbolize bilateral RFQ protocols for precise price discovery and atomic settlement of institutional digital asset derivatives on a Prime RFQ, ensuring best execution for Bitcoin Options](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-institutional-digital-asset-derivatives-rfq-engine-core-market-microstructure-intelligence-layer.jpg)

## Order Handling

Meaning ▴ Order Handling defines the comprehensive, end-to-end process of managing a trade instruction from its initial creation through its complete lifecycle, encompassing validation, routing, execution, and post-trade reporting within an institutional digital asset derivatives framework. </a><a href="https://prime.greeks.live/area/best-execution-framework/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![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)

## Best Execution Framework

Meaning ▴ The Best Execution Framework defines a structured methodology for achieving the most advantageous outcome for client orders, considering price, cost, speed, likelihood of execution and settlement, order size, and any other relevant considerations. </a><a href="https://prime.greeks.live/area/execution-framework/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Illuminated conduits passing through a central, teal-hued processing unit abstractly depict an Institutional-Grade RFQ Protocol. This signifies High-Fidelity Execution of Digital Asset Derivatives, enabling Optimal Price Discovery and Aggregated Liquidity for Multi-Leg Spreads](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-high-fidelity-best-execution.jpg)

## Execution Framework

Meaning ▴ An Execution Framework represents a comprehensive, programmatic system designed to facilitate the systematic processing and routing of trading orders across various market venues, optimizing for predefined objectives such as price, speed, or minimized market impact. </a><a href="https://prime.greeks.live/question/what-are-the-system-architecture-requirements-for-integrating-fdid-tagging-into-an-order-management-system/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, metallic mechanism with a luminous blue sphere at its core represents a Liquidity Pool within a Crypto Derivatives OS. Surrounding rings symbolize intricate Market Microstructure, facilitating RFQ Protocol and High-Fidelity Execution](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-crypto-derivatives-rfq-protocol-core-mechanism.jpg)

## Management System

Integrating FDID tagging into an OMS establishes immutable data lineage, enhancing regulatory compliance and operational control. </a>

**Tags:** [Order Handling](https://options.greeks.live/area/order-handling/), [Best Execution](https://options.greeks.live/area/best-execution/), [Quantitative Analysis](https://options.greeks.live/area/quantitative-analysis/), [Market Microstructure](https://options.greeks.live/area/market-microstructure/), [Best Execution Framework](https://options.greeks.live/area/best-execution-framework/), [Execution Performance](https://options.greeks.live/area/execution-performance/)	

## Discover More

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### [How Does MiFID II Define the Key Factors for Achieving Best Execution?](https://options.greeks.live/question/how-does-mifid-ii-define-the-key-factors-for-achieving-best-execution/)
![A sleek, angular device with a prominent, reflective teal lens. This Institutional Grade Private Quotation Gateway embodies High-Fidelity Execution via Optimized RFQ Protocol for Digital Asset Derivatives. It streamlines Algorithmic Price Discovery and Latent Liquidity Aggregation for Prime Brokerage.](https://options.greeks.live/wp-content/uploads/2025/08/institutional-crypto-derivatives-rfq-high-fidelity-execution-gateway.jpg)

MiFID II defines best execution as a continuous, evidence-based obligation to construct a system that delivers the optimal result by weighing factors like price, cost, and speed.

- 
### [How Does MiFID II Specifically Define Best Execution for OTC Derivatives?](https://options.greeks.live/question/how-does-mifid-ii-specifically-define-best-execution-for-otc-derivatives/)
![A sphere split into light and dark segments, revealing a luminous core. This encapsulates the precise Request for Quote RFQ protocol for institutional digital asset derivatives, highlighting high-fidelity execution, optimal price discovery, and advanced market microstructure within aggregated liquidity pools.](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-execution-framework-for-institutional-digital-asset-derivatives-request-for-quote-protocol-optimization.jpg)

MiFID II defines best execution for OTC derivatives as a continuous, evidence-based obligation to secure the best client outcome by systematically evaluating all relevant execution factors.

- 
### [How Can Firms Effectively Demonstrate Best Execution without RTS 28 Reports?](https://options.greeks.live/question/how-can-firms-effectively-demonstrate-best-execution-without-rts-28-reports/)
![Internal hard drive mechanics, with a read/write head poised over a data platter, symbolize the precise, low-latency execution and high-fidelity data access vital for institutional digital asset derivatives. This embodies a Principal OS architecture supporting robust RFQ protocols, enabling atomic settlement and optimized liquidity aggregation within complex market microstructure.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-precision-execution-system-microstructure.jpg)

Firms demonstrate best execution by building an internal system of governance, data analysis, and documented justification.

- 
### [How Do Regulatory Frameworks like MiFID II Influence the Use of RFQ for Best Execution?](https://options.greeks.live/question/how-do-regulatory-frameworks-like-mifid-ii-influence-the-use-of-rfq-for-best-execution/)
![A metallic, cross-shaped mechanism centrally positioned on a highly reflective, circular silicon wafer. The surrounding border reveals intricate circuit board patterns, signifying the underlying Prime RFQ and intelligence layer. This setup symbolizes high-fidelity execution within market microstructure, enabling algorithmic trading for institutional-grade digital asset derivatives and RFQ protocols with atomic settlement.](https://options.greeks.live/wp-content/uploads/2025/08/the-core-institutional-digital-asset-derivatives-rfq-os-engine-for-high-fidelity-market-microstructure.jpg)

MiFID II transforms the RFQ into a data-driven, auditable process, mandating a systematic approach to proving best execution.

- 
### [Did the Removal of RTS 27 and RTS 28 Reporting Requirements Weaken MiFID II’s Best Execution Mandate?](https://options.greeks.live/question/did-the-removal-of-rts-27-and-rts-28-reporting-requirements-weaken-mifid-iis-best-execution-mandate/)
![A split spherical mechanism reveals intricate internal components. This symbolizes an Institutional Digital Asset Derivatives Prime RFQ, enabling high-fidelity RFQ protocol execution, optimal price discovery, and atomic settlement for block trades and multi-leg spreads.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-prime-os-revealing-rfq-execution-core-mechanics.jpg)

The removal of RTS 27/28 reporting shifted the best execution burden from public disclosure to robust internal analytics and governance.

- 
### [What Regulatory Frameworks Govern Smart Order Routing and Best Execution Practices?](https://options.greeks.live/question/what-regulatory-frameworks-govern-smart-order-routing-and-best-execution-practices/)
![A refined object featuring a translucent teal element, symbolizing a dynamic RFQ for Institutional Grade Digital Asset Derivatives. Its precision embodies High-Fidelity Execution and seamless Price Discovery within complex Market Microstructure. The reflective surface suggests deep Liquidity Pool access for Block Trade and Private Quotation protocols.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-precision-for-optimal-execution-and-deep-liquidity-aggregation.jpg)

Regulatory frameworks provide the architectural blueprint for best execution, with smart order routing as the dynamic system that translates fiduciary duty into optimal market access.

- 
### [What Are the Primary Challenges Firms Face When Implementing a MiFID II Compliant Best Execution Policy?](https://options.greeks.live/question/what-are-the-primary-challenges-firms-face-when-implementing-a-mifid-ii-compliant-best-execution-policy/)
![A luminous central hub with radiating arms signifies an institutional RFQ protocol engine. It embodies seamless liquidity aggregation and high-fidelity execution for multi-leg spread strategies. Varied quadrants represent diverse market microstructure, optimizing capital efficiency within a principal's operational framework, mitigating counterparty risk.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-hub-for-optimal-liquidity-aggregation.jpg)

MiFID II best execution requires a systemic fusion of data, governance, and analytics to demonstrably prove optimal client outcomes.

- 
### [How Does MiFID II Differentiate Best Execution Requirements for Various Asset Classes?](https://options.greeks.live/question/how-does-mifid-ii-differentiate-best-execution-requirements-for-various-asset-classes/)
![An abstract digital interface features a dark circular screen with two luminous dots, one teal and one grey, symbolizing active and pending private quotation statuses within an RFQ protocol. Below, sharp parallel lines in black, beige, and grey delineate distinct liquidity pools and execution pathways for multi-leg spread strategies, reflecting market microstructure and high-fidelity execution for institutional grade digital asset derivatives.](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-protocol-displaying-multi-leg-execution-status-and-optimal-liquidity-pathways.jpg)

MiFID II requires a granular, evidence-based execution framework tailored to the unique microstructure of each asset class.

- 
### [How Does MiFID II Specifically Define Best Execution for RFQ-Based Markets?](https://options.greeks.live/question/how-does-mifid-ii-specifically-define-best-execution-for-rfq-based-markets/)
![Polished opaque and translucent spheres intersect sharp metallic structures. This abstract composition represents advanced RFQ protocols for institutional digital asset derivatives, illustrating multi-leg spread execution, latent liquidity aggregation, and high-fidelity execution within principal-driven trading environments.](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-derivatives-rfq-protocol-optimal-execution-orchestration.jpg)

MiFID II defines best execution for RFQ markets as a holistic, evidence-based duty to secure the optimal client outcome across multiple factors.

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---

**Original URL:** https://options.greeks.live/question/how-do-firms-evidence-best-execution-without-rts-27-reports/
