# How Do Firms Now Source Data to Prove Best Execution without Rts 27? ▴ Question

**Published:** 2025-08-01
**Categories:** Question

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![Internal, precise metallic and transparent components are illuminated by a teal glow. This visual metaphor represents the sophisticated market microstructure and high-fidelity execution of RFQ protocols for institutional digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-engine-microstructure-prime-os-intelligence-layer-atomic-settlement-precision.jpg)

![A symmetrical, angular mechanism with illuminated internal components against a dark background, abstractly representing a high-fidelity execution engine for institutional digital asset derivatives. This visualizes the market microstructure and algorithmic trading precision essential for RFQ protocols, multi-leg spread strategies, and atomic settlement within a Principal OS framework, ensuring capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/precision-execution-engine-for-institutional-digital-asset-derivatives-rfq.jpg)

## Concept

The dissolution of the Regulatory Technical Standard 27 (RTS 27) reporting obligation fundamentally altered the evidentiary framework for [best execution](https://prime.greeks.live/area/best-execution/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). Your operational reality shifted from the consumption of standardized, venue-produced reports to the active construction of a proprietary, multi-source data architecture. The core obligation under Article 27 of the Markets in Financial Instruments Directive II ([MiFID II](https://prime.greeks.live/area/mifid-ii/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite)) remains unaltered; the mandate to achieve the best possible result for a client is a constant. What has been re-architected is the process of proof.

The market-wide experiment with [RTS 27](https://prime.greeks.live/area/rts-27/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) revealed the limitations of a static, one-size-fits-all reporting template. These quarterly reports from execution venues, while well-intentioned, often produced data that was cumbersome, difficult to compare, and ultimately insufficient for a truly granular analysis of [execution quality](https://prime.greeks.live/area/execution-quality/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite).

The system has now evolved. Responsibility has been internalized. Your firm is now required to engineer its own lens through which to view market quality, moving beyond the passive reception of data to the active synthesis of it. This requires a direct and sophisticated engagement with the raw materials of the market.

You must source, normalize, and analyze a mosaic of data points to build a defensible, evidence-based narrative of your [execution strategy](https://prime.greeks.live/area/execution-strategy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). The proof of best execution is now a dynamic, internally-generated output, a product of your firm’s own analytical capabilities. It is a continuous process of measurement, comparison, and justification, built upon a foundation of high-fidelity data sourced directly from the points of execution and the broader market.

> The end of RTS 27 reporting shifted the burden of proof for best execution from consuming standardized venue reports to actively building a sophisticated, multi-source internal data analysis framework.

This paradigm places a premium on your firm’s technological and analytical infrastructure. The core task is to reconstruct the market landscape as it existed at the moment of each trade. This involves capturing not just your own execution data but also the concurrent state of liquidity across multiple venues. The objective is to create a complete evidentiary record that demonstrates that your routing decisions and execution methods were optimal under the prevailing market conditions.

This is a far more demanding task than reviewing a static quarterly report. It is an engineering challenge that requires a robust data pipeline, a powerful analytical engine, and a rigorous governance framework to interpret the results.

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

## The New Evidentiary Standard

The departure from RTS 27 compels firms to establish a more robust and dynamic internal validation process. The previous model, reliant on periodic and often lagging reports from trading venues, has been superseded by a system demanding real-time and post-trade analytics assembled from a variety of sources. This new standard is built on the principle that the firm executing the order is best positioned to construct the most relevant and context-rich proof of its own performance. The focus is now on demonstrating that every sufficient step was taken to achieve the optimal outcome, a task that requires a deep and continuous analysis of both internal and external data feeds.

![A sleek, spherical intelligence layer component with internal blue mechanics and a precision lens. It embodies a Principal's private quotation system, driving high-fidelity execution and price discovery for digital asset derivatives through RFQ protocols, optimizing market microstructure and minimizing latency](https://options.greeks.live/wp-content/uploads/2025/08/principals-private-quotation-system-intelligence-layer-component.jpg)

## From Passive Compliance to Active Analysis

The operational posture of compliance has transformed. Firms can no longer simply check a box by collecting and archiving RTS 27 reports. They must now build and operate a comprehensive [execution quality analysis](https://prime.greeks.live/area/execution-quality-analysis/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (EQA) system. This system’s primary function is to ingest data from multiple sources, normalize it into a consistent format, and apply a range of analytical techniques to benchmark execution performance.

The output is a detailed, trade-by-trade justification of the firm’s execution strategy, ready for review by regulators, clients, and internal oversight committees. This active model provides a far more accurate and defensible record of compliance than the previous, more passive approach.

![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)

## What Data Replaced RTS 27 Reports?

With the decommissioning of venue-specific reports, firms now construct their proof of best execution using a more diverse data mosaic. The primary components include direct data feeds from execution venues, information from [consolidated tape](https://prime.greeks.live/area/consolidated-tape/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) providers, extensive post-trade data from third-party vendors, and a firm’s own internal order and execution records. This composite view allows for a much more granular and context-aware analysis.

For instance, by combining direct tick data from an exchange with its own order placement times, a firm can precisely measure latency and slippage against the true market state, a level of detail that was abstracted away in the aggregated RTS 27 reports. The emphasis is on sourcing the most direct and high-fidelity data possible to build an unassailable evidentiary record.

![A sleek, institutional-grade RFQ engine precisely interfaces with a dark blue sphere, symbolizing a deep latent liquidity pool for digital asset derivatives. This robust connection enables high-fidelity execution and price discovery for Bitcoin Options and multi-leg spread strategies](https://options.greeks.live/wp-content/uploads/2025/07/institutional-crypto-derivatives-rfq-engine-linking-deep-liquidity-pools.jpg)

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

## Strategy

The strategic imperative for firms in a post-RTS 27 world is to architect a comprehensive and defensible [data sourcing](https://prime.greeks.live/area/data-sourcing/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) and analysis framework. This framework must systematically prove that the firm consistently achieves the best possible result for its clients. The strategy moves beyond simple data collection and into the realm of active intelligence gathering and forensic analysis.

It is a strategy predicated on creating a proprietary, multi-layered view of execution quality that is both robust enough for regulatory scrutiny and granular enough to generate genuine performance insights. The core objective is to transition from a compliance-driven reporting function to a performance-driven analytical capability.

This involves two primary strategic pillars ▴ a diversified data [sourcing model](https://prime.greeks.live/question/what-are-the-primary-data-sourcing-challenges-in-replicating-a-ccp-var-model/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) and a sophisticated analytical methodology. The sourcing model ensures that the firm has access to all the necessary raw materials to reconstruct the trading environment. The analytical methodology provides the tools to process those raw materials into clear, quantifiable proof of execution quality.

Together, these pillars support a governance structure where decisions about [execution policy](https://prime.greeks.live/area/execution-policy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), [venue selection](https://prime.greeks.live/area/venue-selection/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), and algorithmic strategies are based on empirical evidence. This data-driven approach allows the firm to not only meet its regulatory obligations but also to continuously refine its execution processes for improved client outcomes.

> A successful strategy integrates diversified data sourcing with advanced Transaction Cost Analysis (TCA) to create a continuous feedback loop for refining execution policies and proving compliance.

![A central processing core with intersecting, transparent structures revealing intricate internal components and blue data flows. This symbolizes an institutional digital asset derivatives platform's Prime RFQ, orchestrating high-fidelity execution, managing aggregated RFQ inquiries, and ensuring atomic settlement within dynamic market microstructure, optimizing capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-trading-system-facilitating-high-fidelity-rfq-protocol-optimization-for-best-execution-and-atomic-settlement.jpg)

## Architecting the Data Sourcing Model

The foundation of the modern best execution strategy is a robust and diversified data sourcing model. Without access to high-quality, time-synchronized data from multiple sources, any analysis will be incomplete and indefensible. The goal is to create a comprehensive data lake that captures a 360-degree view of the market at the time of execution.

- **Direct Venue and Counterparty Feeds** These are the most critical data sources. Firms must establish direct data links with the exchanges, Multilateral Trading Facilities (MTFs), Systematic Internalisers (SIs), and OTC counterparties they trade with. This data includes full order book depth, tick-by-tick trade data, and private execution records. It provides the ground truth of what was possible on a given venue at a specific moment.

- **Consolidated Tape Providers (CTPs)** The emergence of a consolidated tape for various asset classes is a direct response to the shortcomings of the previous regime. A CTP provides a single, unified stream of post-trade price and volume data from all contributing venues. This is an essential tool for creating a market-wide benchmark against which to compare individual executions.

- **Third-Party Market Data Aggregators** Commercial vendors play a vital role in providing both real-time and historical market data. They offer cleaned, normalized, and easily accessible datasets that can be used to supplement direct feeds, conduct historical analysis, and benchmark performance over longer time horizons. Their value lies in the breadth of their data coverage and the analytical tools they often provide.

- **Internal Order and Execution Management Systems (OMS/EMS)** A firm’s own systems are a rich source of internal data. The OMS/EMS contains a complete record of every order’s lifecycle, from creation and routing to final execution. This data includes timestamps, order instructions, routing decisions, and execution reports. It is the firm’s own side of the story and is essential for linking its actions to market outcomes.

![A dual-toned cylindrical component features a central transparent aperture revealing intricate metallic wiring. This signifies a core RFQ processing unit for Digital Asset Derivatives, enabling rapid Price Discovery and High-Fidelity Execution](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-core-best-execution-prime-os.jpg)

## The Centrality of Transaction Cost Analysis

[Transaction Cost Analysis](https://prime.greeks.live/area/transaction-cost-analysis/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (TCA) is the primary analytical methodology used to satisfy best execution requirements in the absence of RTS 27. TCA is a set of techniques used to measure the cost of trading and attribute it to various factors like [market impact](https://prime.greeks.live/area/market-impact/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), timing, and venue selection. It provides a quantitative framework for comparing actual execution prices to a range of benchmarks.

A sophisticated TCA framework is the engine at the heart of the best execution strategy. It transforms raw data into actionable intelligence. The table below outlines several key TCA benchmarks and their strategic application in proving best execution.

### Table 1 ▴ Key Transaction Cost Analysis Benchmarks

| Benchmark | Description | Strategic Application |
| --- | --- | --- |
| Arrival Price | The mid-point of the bid-ask spread at the moment the order is received by the broker or trading desk. | Measures the total cost of implementation, including market impact and timing delay. It is a core metric for assessing the overall efficiency of the execution process. |
| Volume-Weighted Average Price (VWAP) | The average price of a security over a specific time period, weighted by volume. | Used to assess performance for orders that are worked throughout the day. Demonstrates the ability to execute in line with market liquidity. |
| Time-Weighted Average Price (TWAP) | The average price of a security over a specific time period, without volume weighting. | Useful for assessing performance in less liquid markets or for strategies that aim to minimize signaling risk by spreading trades evenly over time. |
| Implementation Shortfall | The difference between the value of a hypothetical portfolio based on the decision price and the actual value of the portfolio after the trade is executed. | Provides a comprehensive measure of all costs, including explicit fees and implicit costs like delay and market impact. It is considered a gold standard for institutional TCA. |

![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)

![A cutaway reveals the intricate market microstructure of an institutional-grade platform. Internal components signify algorithmic trading logic, supporting high-fidelity execution via a streamlined RFQ protocol for aggregated inquiry and price discovery within a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-execution-for-digital-asset-derivatives-via-rfq-protocols.jpg)

## Execution

The execution of a best execution policy without RTS 27 is an operational discipline grounded in a systematic and repeatable workflow. This workflow transforms raw data from disparate sources into a coherent and defensible audit trail. It is a four-stage process that encompasses data capture, normalization, analysis, and reporting.

Each stage requires specific technological capabilities and procedural rigor. The ultimate output is not merely a report, but a dynamic monitoring system that provides continuous feedback to traders, compliance officers, and management, enabling them to prove, and improve, their execution quality.

At the heart of this process is a powerful TCA engine, but its effectiveness is entirely dependent on the quality and integrity of the data that feeds it. Therefore, the operational focus must be on the entire data lifecycle. This begins with ensuring that every relevant data point is captured with high-precision timestamps and ends with the clear presentation of analytical results to the relevant stakeholders. This operational framework is the machine that manufactures proof of best execution.

![An abstract composition of interlocking, precisely engineered metallic plates represents a sophisticated institutional trading infrastructure. Visible perforations within a central block symbolize optimized data conduits for high-fidelity execution and capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-multi-leg-execution-layer.jpg)

## The Core Operational Workflow

Executing a compliant and effective best execution monitoring program requires a well-defined operational workflow. This process ensures that data is handled consistently and that the resulting analysis is accurate and reliable. The workflow can be broken down into the following key stages:

- **Data Capture and Ingestion** This is the foundational stage where all necessary data is collected. It involves capturing internal order and execution data from the firm’s OMS/EMS, as well as subscribing to and ingesting external market data feeds. The key technical challenge is to ensure that all data is timestamped accurately, ideally using a synchronized time source like the Network Time Protocol (NTP), to allow for precise event sequencing.

- **Data Normalization and Warehousing** Data from different sources arrives in different formats. The normalization stage involves transforming this raw data into a single, consistent internal format. For example, venue-specific instrument identifiers must be mapped to a universal symbology. Once normalized, the data is loaded into a central data warehouse or data lake, creating a single source of truth for all subsequent analysis.

- **The [Transaction Cost](https://prime.greeks.live/area/transaction-cost/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) Analysis Engine** This is the analytical core of the workflow. The TCA engine queries the data warehouse to retrieve the relevant internal and external data for each trade. It then applies a range of pre-defined benchmarks (like those in Table 1) to calculate execution costs and slippage. This engine must be capable of processing large volumes of data and performing complex calculations in a timely manner.

- **Reporting, Visualization, and Governance** The final stage involves presenting the results of the TCA analysis to various stakeholders. This includes generating summary reports for the [Best Execution Committee](https://prime.greeks.live/area/best-execution-committee/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), creating detailed, interactive dashboards for traders to review their own performance, and preparing formal documentation for regulatory requests. This stage is critical for translating quantitative data into actionable insights and demonstrating a culture of continuous monitoring and improvement.

![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)

## Quantitative Analysis in Practice

To make the concept of post-RTS 27 analysis concrete, consider the following hypothetical TCA report for a series of trades in a single stock. This table illustrates the kind of granular, evidence-based analysis that firms must now produce internally. It moves far beyond the aggregated statistics of RTS 27 and provides a specific, defensible record for each execution decision.

### Table 2 ▴ Sample Transaction Cost Analysis Report

| Trade ID | Ticker | Quantity | Execution Price (€) | Arrival Price (€) | Slippage (bps) | Venue | Comment |
| --- | --- | --- | --- | --- | --- | --- | --- |
| T-001 | ACME.PA | 10,000 | 50.02 | 50.00 | -4.0 | MTF-X | Passive execution using a limit order; captured spread. |
| T-002 | ACME.PA | 50,000 | 50.08 | 50.05 | +6.0 | Broker-A SI | Aggressive execution to access size; higher market impact. |
| T-003 | ACME.PA | 25,000 | 50.12 | 50.10 | +4.0 | Exchange-Y | VWAP algorithm leg, executed during peak volume. |

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

## How Does This Data Inform Venue Selection?

The data generated by the TCA engine is the primary input for the ongoing review of the firm’s execution policy and venue selection. The Best Execution Committee will periodically review aggregated TCA data to compare the performance of different venues and brokers. They will look for patterns in metrics like average slippage, fill rates, and instances of information leakage. If a particular venue consistently shows poor performance for certain types of orders, it may be removed from the approved venue list or have its priority lowered in the routing logic.

This data-driven governance process is the mechanism by which firms can demonstrate they are taking “all sufficient steps” to optimize their execution arrangements on behalf of clients. It creates a clear, evidence-based justification for every component of the firm’s execution policy.

![A dark, metallic, circular mechanism with central spindle and concentric rings embodies a Prime RFQ for Atomic Settlement. A precise black bar, symbolizing High-Fidelity Execution via FIX Protocol, traverses the surface, highlighting Market Microstructure for Digital Asset Derivatives and RFQ inquiries, enabling Capital Efficiency](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-engine-microstructure-1.jpg)

## References

- European Securities and Markets Authority. “Final Report ▴ MiFID II/MiFIR review report on the obligations to report transactions and reference data.” ESMA, 2022.

- Optiver. “A better way to measure best execution.” Optiver, 2021.

- Planet Compliance. “In a nutshell ▴ Best Execution under MiFID II/MiFIR.” Planet Compliance, 2024.

- Autorité des Marchés Financiers. “Guide to best execution.” AMF, 2017.

- Harris, Larry. Trading and Exchanges ▴ Market Microstructure for Practitioners. Oxford University Press, 2003.

- O’Hara, Maureen. Market Microstructure Theory. Blackwell Publishers, 1995.

- Lehalle, Charles-Albert, and Sophie Laruelle, editors. Market Microstructure in Practice. World Scientific Publishing, 2018.

![Clear sphere, precise metallic probe, reflective platform, blue internal light. This symbolizes RFQ protocol for high-fidelity execution of digital asset derivatives, optimizing price discovery within market microstructure, leveraging dark liquidity for atomic settlement and capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-precision-execution-1.jpg)

## Reflection

The retirement of RTS 27 was not a reduction in regulatory oversight but a fundamental upgrade in its expectation. It marked a transition from a system of standardized, and ultimately limited, disclosure to one that demands genuine institutional accountability. The responsibility now resides entirely within your own operational architecture. The quality of your best execution proof is a direct reflection of the quality of your internal data systems, your analytical capabilities, and the rigor of your governance.

![An intricate system visualizes an institutional-grade Crypto Derivatives OS. Its central high-fidelity execution engine, with visible market microstructure and FIX protocol wiring, enables robust RFQ protocols for digital asset derivatives, optimizing capital efficiency via liquidity aggregation](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-price-discovery.jpg)

## Building Your System of Intelligence

Consider the framework you have built. Does it merely satisfy a compliance requirement, or does it function as a true system of intelligence? A system that not only generates the necessary evidence for regulators but also provides actionable insights that enhance performance, refine strategy, and deliver superior outcomes for your clients. The data you now source and the analysis you perform are the foundational components of this system.

They provide the empirical bedrock upon which every trading decision and strategic policy should be built. The challenge, and the opportunity, is to harness this flow of information to create a durable, competitive advantage through operational excellence.

![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/best-execution/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![An exposed institutional digital asset derivatives engine reveals its market microstructure. The polished disc represents a liquidity pool for price discovery](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-digital-asset-derivatives-rfq-execution-system.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/mifid-ii/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A smooth, light-beige spherical module features a prominent black circular aperture with a vibrant blue internal glow. This represents a dedicated institutional grade sensor or intelligence layer for high-fidelity execution](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-intelligence-layer-for-optimal-digital-asset-rfq-execution.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/execution-quality/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Internal mechanism with translucent green guide, dark components. Represents Market Microstructure of Institutional Grade Crypto Derivatives OS](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-crypto-derivatives-rfq-engine-for-high-fidelity-execution.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/rts-27/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, bi-component digital asset derivatives engine reveals its intricate core, symbolizing an advanced RFQ protocol. This Prime RFQ component enables high-fidelity execution and optimal price discovery within complex market microstructure, managing latent liquidity for institutional operations](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-optimal-execution.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/execution-strategy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A precision internal mechanism for 'Institutional Digital Asset Derivatives' 'Prime RFQ'. White casing holds dark blue 'algorithmic trading' logic and a teal 'multi-leg spread' module](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-rfq-engine-high-fidelity-execution-liquidity-aggregation.jpg)

## 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/execution-quality-analysis/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A reflective sphere, bisected by a sharp metallic ring, encapsulates a dynamic cosmic pattern. This abstract representation symbolizes a Prime RFQ liquidity pool for institutional digital asset derivatives, enabling RFQ protocol price discovery and high-fidelity execution](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-institutional-digital-asset-derivatives-rfq-execution-1.jpg)

## Execution Quality Analysis

Meaning ▴ Execution Quality Analysis is the systematic quantitative evaluation of trading order fulfillment effectiveness against pre-defined benchmarks and market conditions. </a><a href="https://prime.greeks.live/area/consolidated-tape/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Symmetrical internal components, light green and white, converge at central blue nodes. This abstract representation embodies a Principal's operational framework, enabling high-fidelity execution of institutional digital asset derivatives via advanced RFQ protocols, optimizing market microstructure for price discovery](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-engine-core.jpg)

## Consolidated Tape

Meaning ▴ The Consolidated Tape refers to the real-time stream of last-sale price and volume data for exchange-listed securities across all U.S. </a><a href="https://prime.greeks.live/area/data-sourcing/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sophisticated dark-hued institutional-grade digital asset derivatives platform interface, featuring a glowing aperture symbolizing active RFQ price discovery and high-fidelity execution. The integrated intelligence layer facilitates atomic settlement and multi-leg spread processing, optimizing market microstructure for prime brokerage operations and capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/institutional-crypto-derivatives-rfq-engine-intelligence-layer.jpg)

## Data Sourcing

Meaning ▴ Data Sourcing defines the systematic process of identifying, acquiring, validating, and integrating diverse datasets from various internal and external origins, essential for supporting quantitative analysis, algorithmic execution, and strategic decision-making within institutional digital asset derivatives trading operations. </a><a href="https://prime.greeks.live/question/what-are-the-primary-data-sourcing-challenges-in-replicating-a-ccp-var-model/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A robust circular Prime RFQ component with horizontal data channels, radiating a turquoise glow signifying price discovery. This institutional-grade RFQ system facilitates high-fidelity execution for digital asset derivatives, optimizing market microstructure and capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/institutional-rfq-engine-for-digital-asset-derivatives-execution.jpg)

## Sourcing Model

Replicating a CCP VaR model is an exercise in systematically rebuilding its data ecosystem to forecast and manage liquidity risk. </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">
![The image depicts two interconnected modular systems, one ivory and one teal, symbolizing robust institutional grade infrastructure for digital asset derivatives. Glowing internal components represent algorithmic trading engines and intelligence layers facilitating RFQ protocols for high-fidelity execution and atomic settlement of multi-leg spreads](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-platform-1.jpg)

## 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/venue-selection/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, white, semi-spherical Principal's operational framework opens to precise internal FIX Protocol components. A luminous, reflective blue sphere embodies an institutional-grade digital asset derivative, symbolizing optimal price discovery and a robust liquidity pool](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-high-fidelity-execution-5.jpg)

## Venue Selection

Meaning ▴ Venue Selection refers to the algorithmic process of dynamically determining the optimal trading venue for an order based on a comprehensive set of predefined criteria. </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">
![An intricate, transparent cylindrical system depicts a sophisticated RFQ protocol for digital asset derivatives. Internal glowing elements signify high-fidelity execution and algorithmic trading](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-protocol-architecture.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/market-impact/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![An opaque principal's operational framework half-sphere interfaces a translucent digital asset derivatives sphere, revealing implied volatility. This symbolizes high-fidelity execution via an RFQ protocol, enabling private quotation within the market microstructure and deep liquidity pool for a robust Crypto Derivatives OS](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-engine-13.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/area/transaction-cost/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, open system showcases modular architecture, embodying an institutional-grade Prime RFQ for digital asset derivatives. Distinct internal components signify liquidity pools and multi-leg spread capabilities, ensuring high-fidelity execution via RFQ protocols for price discovery](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-engine-modularity-unveiled.jpg)

## Transaction Cost

Meaning ▴ Transaction Cost represents the total quantifiable economic friction incurred during the execution of a trade, encompassing both explicit costs such as commissions, exchange fees, and clearing charges, alongside implicit costs like market impact, slippage, and opportunity cost. </a><a href="https://prime.greeks.live/area/best-execution-committee/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Modular institutional-grade execution system components reveal luminous green data pathways, symbolizing high-fidelity cross-asset connectivity. This depicts intricate market microstructure facilitating RFQ protocol integration for atomic settlement of digital asset derivatives within a Principal's operational framework, underpinned by a Prime RFQ intelligence layer](https://options.greeks.live/wp-content/uploads/2025/07/modular-high-fidelity-execution-architecture-for-institutional-digital-asset-derivatives-rfq-protocol-integration-and-principals-operational-framework-optimization.jpg)

## Best Execution Committee

Meaning ▴ The Best Execution Committee functions as a formal governance body within an institutional trading framework, specifically mandated to define, implement, and continuously monitor policies and procedures ensuring optimal trade execution across all asset classes, including institutional digital asset derivatives. </a>

**Tags:** [Execution Policy](https://options.greeks.live/area/execution-policy/), [Market Impact](https://options.greeks.live/area/market-impact/), [Execution Quality Analysis](https://options.greeks.live/area/execution-quality-analysis/), [MiFID II](https://options.greeks.live/area/mifid-ii/), [Regulatory Reporting](https://options.greeks.live/area/regulatory-reporting/), [Execution Quality](https://options.greeks.live/area/execution-quality/)	

## Discover More

- 
### [What Are the Specific Responsibilities of a Best Execution Committee?](https://options.greeks.live/question/what-are-the-specific-responsibilities-of-a-best-execution-committee/)
![A Prime RFQ engine's central hub integrates diverse multi-leg spread strategies and institutional liquidity streams. Distinct blades represent Bitcoin Options and Ethereum Futures, showcasing high-fidelity execution and optimal price discovery.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-prime-os-rfq-engine-optimizing-multi-leg-spread-high-fidelity-execution-with-atomic-settlement.jpg)

A Best Execution Committee is the firm's governance engine for systematically optimizing trade execution to enhance client returns.

- 
### [How Do Regulatory Mandates like MiFID II Influence Best Execution Analysis?](https://options.greeks.live/question/how-do-regulatory-mandates-like-mifid-ii-influence-best-execution-analysis/)
![A multi-layered, sectioned sphere reveals core institutional digital asset derivatives architecture. Translucent layers depict dynamic RFQ liquidity pools and multi-leg spread execution. The opaque half signifies robust institutional-grade infrastructure. A central core embodies the Prime RFQ intelligence layer, enabling high-fidelity execution, atomic settlement, and optimal price discovery.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-market-microstructure-1.jpg)

MiFID II codifies best execution as a quantitative, data-driven discipline, mandating a provable, multi-factor analysis of execution quality.

- 
### [What Are the Key Challenges in Building a MiFID II Compliant Transaction Cost Analysis Framework?](https://options.greeks.live/question/what-are-the-key-challenges-in-building-a-mifid-ii-compliant-transaction-cost-analysis-framework/)
![A dark, precision-engineered module with raised circular elements integrates with a smooth beige housing. It signifies high-fidelity execution for institutional RFQ protocols, ensuring robust price discovery and capital efficiency in digital asset derivatives market microstructure.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-rfq-system-core-high-speed-price-discovery-module.jpg)

Building a MiFID II TCA framework is an exercise in designing a data-driven system to quantitatively prove execution quality.

- 
### [How Can Firms Effectively Demonstrate Adherence to Best Execution Principles without Standardized Public Reports?](https://options.greeks.live/question/how-can-firms-effectively-demonstrate-adherence-to-best-execution-principles-without-standardized-public-reports/)
![Abstract depiction of an advanced institutional trading system, featuring a prominent sensor for real-time price discovery and an intelligence layer. Visible circuitry signifies algorithmic trading capabilities, low-latency execution, and robust FIX protocol integration for digital asset derivatives. This represents a principal's operational framework for optimized RFQ protocols and atomic settlement.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-prime-os-high-fidelity-rfq-protocols.jpg)

Firms demonstrate best execution by building an internal, data-driven evidentiary system that validates the entire order lifecycle.

- 
### [How Do Regulations like MiFID II Specifically Define the Responsibilities of a Best Execution Committee?](https://options.greeks.live/question/how-do-regulations-like-mifid-ii-specifically-define-the-responsibilities-of-a-best-execution-committee/)
![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)

The Best Execution Committee is a firm's core governance engine for translating MiFID II's principles into a superior execution architecture.

- 
### [What Are the Primary Technological Challenges in Complying with MiFID II’s Best Execution Requirements?](https://options.greeks.live/question/what-are-the-primary-technological-challenges-in-complying-with-mifid-iis-best-execution-requirements/)
![A sophisticated, angular digital asset derivatives execution engine with glowing circuit traces and an integrated chip rests on a textured platform. This symbolizes advanced RFQ protocols, high-fidelity execution, and the robust Principal's operational framework supporting institutional-grade market microstructure and optimized liquidity aggregation.](https://options.greeks.live/wp-content/uploads/2025/08/advanced-digital-asset-derivatives-rfq-protocol-engine-architecture.jpg)

MiFID II best execution compliance demands an integrated data architecture to prove optimal outcomes across a vector of performance factors.

- 
### [How Does MiFID II Redefine the Concept of Best Execution for Algorithmic Strategies?](https://options.greeks.live/question/how-does-mifid-ii-redefine-the-concept-of-best-execution-for-algorithmic-strategies/)
![A sleek, futuristic mechanism showcases a large reflective blue dome with intricate internal gears, connected by precise metallic bars to a smaller sphere. This embodies an institutional-grade Crypto Derivatives OS, optimizing RFQ protocols for high-fidelity execution, managing liquidity pools, and enabling efficient price discovery.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-facilitating-high-fidelity-execution-and-optimal-market-microstructure-with-prime-os-intelligence.jpg)

MiFID II transforms best execution for algorithms into a continuous, evidence-based duty to prove optimal outcomes across all execution factors.

- 
### [How Does Market Fragmentation Impact the Documentation of Best Execution?](https://options.greeks.live/question/how-does-market-fragmentation-impact-the-documentation-of-best-execution/)
![The image features layered structural elements, representing diverse liquidity pools and market segments within a Principal's operational framework. A sharp, reflective plane intersects, symbolizing high-fidelity execution and price discovery via private quotation protocols for institutional digital asset derivatives, emphasizing atomic settlement nodes.](https://options.greeks.live/wp-content/uploads/2025/07/systemic-interplay-for-institutional-digital-asset-derivatives-execution-via-advanced-rfq-protocols.jpg)

Fragmented markets demand a systemic, data-driven framework where best execution is proven through a complete and auditable evidentiary chain.

- 
### [What Are the Primary Regulatory Drivers for Adopting a More Sophisticated Best Execution Framework?](https://options.greeks.live/question/what-are-the-primary-regulatory-drivers-for-adopting-a-more-sophisticated-best-execution-framework/)
![A precision optical component stands on a dark, reflective surface, symbolizing a Price Discovery engine for Institutional Digital Asset Derivatives. This Crypto Derivatives OS element enables High-Fidelity Execution through advanced Algorithmic Trading and Multi-Leg Spread capabilities, optimizing Market Microstructure for RFQ protocols.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-optimal-execution-system-microstructure.jpg)

Regulatory drivers compel firms to engineer a provable, data-centric system that transforms execution quality from a policy into a verifiable output.

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---

**Original URL:** https://options.greeks.live/question/how-do-firms-now-source-data-to-prove-best-execution-without-rts-27/
