# How Do Firms Quantitatively Prove Best Execution for Illiquid Bonds under MiFID II? ▴ Question

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

---

![A reflective surface supports a sharp metallic element, stabilized by a sphere, alongside translucent teal prisms. This abstractly represents institutional-grade digital asset derivatives RFQ protocol price discovery within a Prime RFQ, emphasizing high-fidelity execution and liquidity pool optimization](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-derivatives-rfq-prime-os-microstructure-optimization.jpg)

![Curved, segmented surfaces in blue, beige, and teal, with a transparent cylindrical element against a dark background. This abstractly depicts volatility surfaces and market microstructure, facilitating high-fidelity execution via RFQ protocols for digital asset derivatives, enabling price discovery and revealing latent liquidity for institutional trading](https://options.greeks.live/wp-content/uploads/2025/07/optimized-rfq-protocol-dynamics-for-institutional-crypto-derivatives.jpg)

## Concept

Proving [best execution](https://prime.greeks.live/area/best-execution/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) for [illiquid bonds](https://prime.greeks.live/area/illiquid-bonds/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) under MiFID II presents a fundamental challenge of modern finance. It demands a firm apply rigorous, data-driven validation to an asset class defined by its very lack of data. For those operating within these markets, the directive to quantitatively prove the optimal outcome for a client on an instrument that may not have traded in weeks, or for which no reliable, continuous price is available, can feel like a mandate to measure the unmeasurable. The process is a departure from the high-frequency, transparent world of equities, where a consolidated tape provides a constant stream of reference prices.

In the over-the-counter (OTC) bond markets, particularly for less liquid instruments, the concept of a single “market price” is an abstraction. The true price is discovered only at the moment of interaction, through a series of bilateral conversations.

The core of the [MiFID II](https://prime.greeks.live/area/mifid-ii/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) obligation requires firms to take “all sufficient steps” to obtain the best possible result for their clients. This extends beyond the headline price to a holistic view of [execution quality](https://prime.greeks.live/area/execution-quality/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), encompassing costs, speed, likelihood of execution and settlement, size, and any other relevant consideration. For illiquid bonds, the emphasis shifts dramatically. The likelihood of finding a counterparty willing to transact in a meaningful size becomes a dominant factor, often taking precedence over chasing the last basis point on price.

A failed trade, after all, represents the poorest execution imaginable. Therefore, the [quantitative proof](https://prime.greeks.live/area/quantitative-proof/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) required is one of context and justification, demonstrating that the chosen execution pathway was the most rational and effective one available under the specific market conditions at that precise moment.

> The challenge lies in constructing a verifiable narrative of execution quality from sparse data points within a decentralized market structure.

This reality forces a shift in perspective. The objective is to build a defensible audit trail. This trail is not based on a single, universal benchmark but on a composite of available data points that, when viewed together, create a robust picture of the market at the time of the trade. It involves systematically capturing every stage of the price discovery process, from the initial [request for quote](https://prime.greeks.live/area/request-for-quote/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (RFQ) to the final execution, and comparing that outcome against a mosaic of potential alternatives.

The quantitative element is found in the rigorous comparison of the executed trade against the [other quotes received](https://prime.greeks.live/question/in-an-illiquid-market-how-can-best-execution-be-demonstrated-when-very-few-rfq-responses-are-received/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), against [evaluated prices](https://prime.greeks.live/question/can-machine-learning-models-provide-more-accurate-pre-trade-benchmarks-than-evaluated-prices/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) from third-party services, and against the firm’s own historical trading data for similar instruments. It is an exercise in building a data-centric defense of a decision made in an information-poor environment.

![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)

![A sharp, metallic blue instrument with a precise tip rests on a light surface, suggesting pinpoint price discovery within market microstructure. This visualizes high-fidelity execution of digital asset derivatives, highlighting RFQ protocol efficiency](https://options.greeks.live/wp-content/uploads/2025/07/precision-digital-asset-derivative-rfq-execution-market-microstructure-high-fidelity-alpha-generation-prime-os-system.jpg)

## Strategy

A successful strategy for demonstrating best execution in illiquid bonds is rooted in a two-pronged approach ▴ comprehensive data capture and the construction of a dynamic, multi-layered benchmarking framework. Given the absence of a consolidated tape for bonds, a firm cannot rely on a single source of truth. Instead, it must create its own by systematically recording every facet of the trading process and then judging the outcome against a hierarchy of relevant, context-aware benchmarks. This strategy transforms the compliance requirement from a reactive reporting exercise into a proactive system for evaluating and improving trading performance.

![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)

## The Data Capture Imperative

The foundation of any quantitative proof is the data itself. For illiquid OTC instruments, the most critical data is generated during the price discovery process. The strategy must ensure the meticulous capture of all information related to a Request for Quote (RFQ) workflow. This includes:

- **Queried Counterparties** ▴ A record of every dealer or liquidity provider invited to quote on the bond.

- **Submitted Quotes** ▴ The price and size of every single quote received, including those that were not successful. This is a vital dataset, as it provides a direct, contemporaneous view of the market’s appetite.

- **Timestamps** ▴ Precise timestamps for every stage of the process ▴ RFQ issuance, quote receipt, and final execution ▴ are non-negotiable for contextual analysis.

- **Trader Rationale** ▴ While qualitative, a structured method for traders to log their rationale for choosing a particular counterparty (e.g. “Best price,” “Only provider of size,” “Historical settlement reliability”) adds a crucial layer of defense.

![A translucent, faceted sphere, representing a digital asset derivative block trade, traverses a precision-engineered track. This signifies high-fidelity execution via an RFQ protocol, optimizing liquidity aggregation, price discovery, and capital efficiency within institutional market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-block-trade-high-fidelity-execution-protocol-prime-os-path.jpg)

## A Multi-Layered Benchmarking Framework

With a robust dataset, the core of the strategy involves comparing the executed trade against several benchmarks. A single point of comparison is insufficient; a layered approach provides a more complete and defensible picture of execution quality.

> Effective benchmarking for illiquid bonds involves triangulating the trade’s price against multiple reference points to establish a zone of reasonableness.

This framework is not about finding one “correct” price but about proving the [executed price](https://prime.greeks.live/question/can-implementation-shortfall-be-accurately-predicted-before-a-trade-is-executed/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) was reasonable and optimal given the available information. The primary layers of this framework include:

- **Internal Quote-Based Analysis** ▴ This is the most powerful and direct form of quantitative proof. It involves comparing the executed price against all other [quotes received](https://prime.greeks.live/question/in-an-illiquid-market-how-can-best-execution-be-demonstrated-when-very-few-rfq-responses-are-received/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) for that specific RFQ. The analysis measures the “price slippage” or “price improvement” relative to the best alternative quote and the average of all quotes. This demonstrates that the firm achieved a superior outcome within its own competitive auction process.

- **Third-Party [Evaluated Pricing](https://prime.greeks.live/area/evaluated-pricing/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite)** ▴ Services like Bloomberg’s BVAL, ICE Data Services, or Refinitiv provide daily evaluated prices for a vast universe of bonds. These prices are model-driven, based on comparable bonds, credit spreads, and other market data. While not actual tradable prices, they serve as an essential, independent reference point. A key metric is the deviation of the executed price from the [evaluated price](https://prime.greeks.live/area/evaluated-price/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) at the time of the trade. A consistent pattern of trading at or near these evaluated prices provides a strong defense.

- **Peer Group Analytics** ▴ Several third-party [Transaction Cost Analysis](https://prime.greeks.live/area/transaction-cost-analysis/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (TCA) providers offer services that aggregate and anonymize [trade data](https://prime.greeks.live/area/trade-data/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) from a consortium of asset managers. This allows a firm to compare its execution quality for a specific bond or sector against that of its peers. A firm can demonstrate that its execution costs are, for example, consistently in the top quartile for trades of a similar size and risk profile.

The following table illustrates how these benchmarking strategies can be applied, highlighting their respective strengths and weaknesses.

| Benchmarking Strategy | Description | Quantitative Metric | Strengths | Weaknesses |
| --- | --- | --- | --- | --- |
| Internal Quote Comparison | Comparing the executed price to all other quotes received in the RFQ process. | Slippage vs. Best Alternative Quote; Slippage vs. Average Quote. | Highly specific to the trade; provides a direct measure of competitive pricing at the moment of execution. | Limited by the number of dealers queried; does not capture the broader market context. |
| Evaluated Pricing (e.g. BVAL) | Comparing the executed price to a third-party, model-driven price. | Deviation from Evaluated Price (in basis points or currency). | Provides an objective, independent reference; broad coverage across many instruments. | The price is a model, not a tradable quote; can lag market movements or miss instrument-specific nuances. |
| Peer Group Analysis (TCA) | Comparing execution results against an anonymized pool of trades from other firms. | Cost Percentile Ranking; Average Cost vs. Peer Average. | Provides market-wide context; helps identify systemic areas for improvement. | Data can be delayed; relies on the quality and composition of the peer group. |

![A sleek, illuminated control knob emerges from a robust, metallic base, representing a Prime RFQ interface for institutional digital asset derivatives. Its glowing bands signify real-time analytics and high-fidelity execution of RFQ protocols, enabling optimal price discovery and capital efficiency in dark pools for block trades](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-system-for-optimal-execution.jpg)

![A multi-faceted crystalline form with sharp, radiating elements centers on a dark sphere, symbolizing complex market microstructure. This represents sophisticated RFQ protocols, aggregated inquiry, and high-fidelity execution across diverse liquidity pools, optimizing capital efficiency for institutional digital asset derivatives within a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/rfq-protocols-for-institutional-digital-asset-derivatives-price-discovery.jpg)

## Execution

Executing a compliant best execution framework for illiquid bonds moves from strategic planning to operational reality through a combination of disciplined workflow, quantitative modeling, and technological integration. This is where the theoretical constructs of data capture and benchmarking are transformed into a repeatable, auditable process that can withstand regulatory scrutiny. The goal is to produce a clear, data-driven narrative for every trade, demonstrating that “all sufficient steps” were taken.

![A precise, multi-faceted geometric structure represents institutional digital asset derivatives RFQ protocols. Its sharp angles denote high-fidelity execution and price discovery for multi-leg spread strategies, symbolizing capital efficiency and atomic settlement within a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-derivatives-rfq-execution-microstructure-framework.jpg)

## The Operational Playbook a Three-Stage Process

A robust execution framework can be broken down into three distinct stages, each generating critical data for the final proof.

- **Pre-Trade Intelligence** ▴ Before an order is even placed, the process begins. This stage involves documenting the “why” behind the trading decision.

<li>**Venue & Counterparty Selection** ▴ The system must log the rationale for choosing a specific set of dealers for the RFQ. This could be based on historical performance, known axes (a dealer’s stated interest in buying or selling a specific bond), or counterparty risk limits.

- **Pre-Trade Cost Estimation** ▴ Leveraging historical data and evaluated pricing, the system should generate an expected cost or price range for the trade. This sets an initial, internal benchmark against which the final execution can be measured.

</li>
- **At-Trade Data Harvesting** ▴ This is the most critical data collection phase, where the market is actively tested.

<li>**Systematic RFQ Capture** ▴ The firm’s Execution Management System (EMS) must automatically log every detail of the RFQ process. This includes all [dealers queried](https://prime.greeks.live/question/what-is-the-quantitative-relationship-between-the-number-of-dealers-queried-and-pre-trade-price-impact/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), all responses (prices and sizes), non-responses, and timestamps for every event. Manual processes are prone to error and omission.

- **Justification at Point-of-Trade** ▴ For any execution that deviates from the best-priced quote, the system should require the trader to provide a structured reason. For instance, the best-priced quote may have been for a smaller size than required, making a slightly worse price for the full size the optimal choice.

</li>
- **Post-Trade [Quantitative Analysis](https://prime.greeks.live/area/quantitative-analysis/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite)** ▴ After the trade is complete, the data is aggregated and analyzed to generate the quantitative proof. This analysis forms the basis of internal reviews and regulatory reports (like [RTS 28](https://prime.greeks.live/area/rts-28/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite)). This involves calculating the key metrics defined in the strategy and comparing them over time.

![Sharp, intersecting metallic silver, teal, blue, and beige planes converge, illustrating complex liquidity pools and order book dynamics in institutional trading. This form embodies high-fidelity execution and atomic settlement for digital asset derivatives via RFQ protocols, optimized by a Principal's operational framework](https://options.greeks.live/wp-content/uploads/2025/07/institutional-grade-digital-asset-derivatives-market-microstructure-high-fidelity-execution-across-multi-leg-spread-rfq-protocol-orchestration-within-principals-operational-framework.jpg)

## Quantitative Modeling and Data Analysis

The core of the proof lies in the post-trade analysis. This analysis translates raw trade data into meaningful metrics of execution quality. A typical analysis for a single trade would be captured in a detailed TCA (Transaction Cost Analysis) report.

Consider the following hypothetical TCA report for the purchase of an illiquid corporate bond. This table is the tangible output of the execution process, providing a multi-faceted quantitative view of a single trade.

| Metric | Value | Description |
| --- | --- | --- |
| ISIN | XS1234567890 | Identifier of the traded bond. |
| Trade Direction | Buy | Direction of the client order. |
| Order Size (Nominal) | 5,000,000 EUR | The total size of the order. |
| Execution Timestamp | 2025-08-07 14:32:15 UTC | The precise time of execution. |
| Executed Price | 101.50 | The final price at which the trade was executed. |
| Number of Dealers Queried | 5 | The breadth of the competitive process. |
| Best Quote Received | 101.48 | The most competitive price offered during the RFQ. |
| Winning Quote Slippage | -0.02 (2 bps) | The difference between the executed price and the best quote (negative indicates improvement). |
| Average Quote Received | 101.55 | The average of all quotes received. |
| Improvement vs. Average | -0.05 (5 bps) | The price improvement compared to the mean of the market sample. |
| Evaluated Price (Pre-Trade) | 101.52 | The third-party evaluated price at the time of the RFQ. |
| Slippage vs. Evaluated Price | -0.02 (2 bps) | The difference between the executed price and the independent benchmark. |

> This detailed report moves the justification from a subjective claim to an objective, data-supported conclusion.

Beyond single-trade analysis, firms can use regression models on their aggregated trade data to further solidify their case. A model could analyze execution cost as a function of trade size, the bond’s liquidity score, market volatility, and the number of dealers queried. By demonstrating that execution costs are consistently within the predicted range of the model, a firm can prove its process is not only effective but also statistically sound and repeatable over time.

![A multi-faceted algorithmic execution engine, reflective with teal components, navigates a cratered market microstructure. It embodies a Principal's operational framework for high-fidelity execution of digital asset derivatives, optimizing capital efficiency, best execution via RFQ protocols in a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/advanced-rfq-protocol-engine-for-institutional-digital-asset-derivatives.jpg)

## System Integration and Technological Architecture

None of this is feasible at scale without a robust technological backbone. The architecture must ensure that data is captured completely, accurately, and with minimal manual intervention.

- **Execution Management System (EMS)** ▴ The EMS is the central hub. It must be configured to manage RFQ workflows for bonds and, critically, to log every piece of data automatically into a database.

- **Data Warehouse** ▴ A centralized repository is needed to store trade data, quote data, and third-party market data (like evaluated prices). This warehouse becomes the single source of truth for all TCA and best execution analysis.

- **Analytics Engine** ▴ This is the software that runs the quantitative models, generates the TCA reports, and creates the summary dashboards for compliance and front-office review.

- **FIX Protocol** ▴ The Financial Information eXchange (FIX) protocol is the industry standard for communicating trade information electronically. Using FIX ensures that data from different venues and counterparties is captured in a standardized format, reducing integration friction and data quality issues.

Ultimately, the execution of a best execution policy is a continuous loop. The quantitative analysis of past trades provides the intelligence to refine pre-trade strategies, select better counterparties, and improve trading outcomes for clients in the future. The proof becomes the process.

![Two smooth, teal spheres, representing institutional liquidity pools, precisely balance a metallic object, symbolizing a block trade executed via RFQ protocol. This depicts high-fidelity execution, optimizing price discovery and capital efficiency within a Principal's operational framework for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/precision-execution-bridging-institutional-liquidity-pools-via-rfq-protocol-for-optimized-digital-asset-derivatives-price-discovery.jpg)

## References

- 1. European Securities and Markets Authority. (2017). MiFID II and MiFIR. ESMA.

- 2. Financial Conduct Authority. (2017). Markets in Financial Instruments Directive II Implementation. FCA Handbook.

- 3. International Capital Market Association. (2016). MiFID II/MiFIR ▴ Transparency & Best Execution requirements in respect of bonds. ICMA Report.

- 4. Harris, L. (2003). Trading and Exchanges ▴ Market Microstructure for Practitioners. Oxford University Press.

- 5. Lehalle, C. A. & Laruelle, S. (2013). Market Microstructure in Practice. World Scientific Publishing.

- 6. The Investment Association. (2018). Fixed Income Best Execution ▴ Not Just a Number. The Investment Association.

- 7. Kennedy, T. (2017). Best Execution Under MiFID II. Thomson Reuters.

- 8. Barclays Investment Bank. (2021). MiFID Best Execution Policy ▴ Client Summary. Barclays.

![A sharp, reflective geometric form in cool blues against black. This represents the intricate market microstructure of institutional digital asset derivatives, powering RFQ protocols for high-fidelity execution, liquidity aggregation, price discovery, and atomic settlement via a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-digital-asset-derivatives-rfq-protocol-for-institutional-trading.jpg)

## Reflection

The framework for proving best execution in illiquid bonds, born from regulatory mandate, offers a deeper institutional capability. It compels a firm to build a system of introspection. The machinery constructed to satisfy compliance ▴ the data warehouses, the analytics engines, the disciplined workflows ▴ becomes a powerful feedback loop for the entire trading operation. The process of generating quantitative proof forces a continuous, honest appraisal of counterparty performance, trading strategies, and the very nature of liquidity in fragmented markets.

Viewing this system solely as a defensive measure against regulatory inquiry is a failure of imagination. Instead, it should be seen as an offensive tool. The data harvested provides a unique, proprietary map of a firm’s specific corner of the market. It reveals which counterparties provide genuine liquidity versus those who merely respond to RFQs.

It quantifies the true cost of immediacy and the value of patience. It provides the front office with the intelligence to make smarter, faster, and more defensible trading decisions.

The ultimate objective, then, is to integrate this flow of information so deeply into the operational fabric that the distinction between trading and compliance blurs. When the quantitative proof of best execution is a natural byproduct of a superior trading process, the regulatory requirement ceases to be a burden and becomes, instead, a confirmation of excellence.

![Interconnected teal and beige geometric facets form an abstract construct, embodying a sophisticated RFQ protocol for institutional digital asset derivatives. This visualizes multi-leg spread structuring, liquidity aggregation, high-fidelity execution, principal risk management, capital efficiency, and atomic settlement](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-for-multi-leg-spread-execution-and-optimal-liquidity-aggregation.jpg)

## Glossary

<a href="https://prime.greeks.live/area/illiquid-bonds/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Geometric planes, light and dark, interlock around a central hexagonal core. This abstract visualization depicts an institutional-grade RFQ protocol engine, optimizing market microstructure for price discovery and high-fidelity execution of digital asset derivatives including Bitcoin options and multi-leg spreads within a Prime RFQ framework, ensuring atomic settlement](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-engine-architecture.jpg)

## Illiquid Bonds

Meaning ▴ Illiquid bonds are debt instruments not readily convertible to cash at fair market value due to insufficient trading activity or limited market depth. </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">
![The abstract image features angular, parallel metallic and colored planes, suggesting structured market microstructure for digital asset derivatives. A spherical element represents a block trade or RFQ protocol inquiry, reflecting dynamic implied volatility and price discovery within a dark pool](https://options.greeks.live/wp-content/uploads/2025/07/optimized-institutional-digital-asset-derivatives-rfq-protocol-framework-ensuring-principal-best-execution-and-latent-liquidity-capture.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/execution-quality/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek blue surface with droplets represents a high-fidelity Execution Management System for digital asset derivatives, processing market data. A lighter surface denotes the Principal's Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-rfq-execution-for-optimal-price-discovery.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/mifid-ii/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Diagonal composition of sleek metallic infrastructure with a bright green data stream alongside a multi-toned teal geometric block. This visualizes High-Fidelity Execution for Digital Asset Derivatives, facilitating RFQ Price Discovery within deep Liquidity Pools, critical for institutional Block Trades and Multi-Leg Spreads on a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-digital-asset-derivatives-rfq-execution-optimization-leveraging-proprietary-institutional-prime-os-for-optimal-price-discovery-and-latency-reduction.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/quantitative-proof/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![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)

## Quantitative Proof

Meaning ▴ Quantitative Proof refers to the empirically verifiable demonstration of a hypothesis or outcome, derived through rigorous statistical analysis of measurable data. </a><a href="https://prime.greeks.live/area/request-for-quote/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Symmetrical teal and beige structural elements intersect centrally, depicting an institutional RFQ hub for digital asset derivatives. This abstract composition represents algorithmic execution of multi-leg options, optimizing liquidity aggregation, price discovery, and capital efficiency for best execution](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-derivatives-rfq-protocol-for-multi-leg-options-execution.jpg)

## Request for Quote

Meaning ▴ A Request for Quote, or RFQ, constitutes a formal communication initiated by a potential buyer or seller to solicit price quotations for a specified financial instrument or block of instruments from one or more liquidity providers. </a><a href="https://prime.greeks.live/question/in-an-illiquid-market-how-can-best-execution-be-demonstrated-when-very-few-rfq-responses-are-received/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A segmented circular structure depicts an institutional digital asset derivatives platform. Distinct dark and light quadrants illustrate liquidity segmentation and dark pool integration](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-liquidity-aggregation-protocols.jpg)

## Other Quotes Received

Best execution in illiquid markets is proven by architecting a defensible, process-driven evidentiary framework, not by finding a single price. </a><a href="https://prime.greeks.live/question/can-machine-learning-models-provide-more-accurate-pre-trade-benchmarks-than-evaluated-prices/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![An abstract, precision-engineered mechanism showcases polished chrome components connecting a blue base, cream panel, and a teal display with numerical data. This symbolizes an institutional-grade RFQ protocol for digital asset derivatives, ensuring high-fidelity execution, price discovery, multi-leg spread processing, and atomic settlement within a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-precision-execution-1.jpg)

## Evaluated Prices

ML models offer superior pre-trade benchmarks by providing dynamic, trade-specific cost predictions, unlike static evaluated prices. </a><a href="https://prime.greeks.live/question/can-implementation-shortfall-be-accurately-predicted-before-a-trade-is-executed/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A dark, precision-engineered core system, with metallic rings and an active segment, represents a Prime RFQ for institutional digital asset derivatives. Its transparent, faceted shaft symbolizes high-fidelity RFQ protocol execution, real-time price discovery, and atomic settlement, ensuring capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-prime-os-core-for-high-fidelity-rfq-protocol-execution-and-atomic-settlement.jpg)

## Executed Price

Implementation shortfall can be predicted with increasing accuracy by systemically modeling market impact and timing risk. </a><a href="https://prime.greeks.live/question/in-an-illiquid-market-how-can-best-execution-be-demonstrated-when-very-few-rfq-responses-are-received/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A luminous conical element projects from a multi-faceted transparent teal crystal, signifying RFQ protocol precision and price discovery. This embodies institutional grade digital asset derivatives high-fidelity execution, leveraging Prime RFQ for liquidity aggregation and atomic settlement](https://options.greeks.live/wp-content/uploads/2025/07/precision-engineered-rfq-protocol-orchestration-for-institutional-digital-asset-derivatives-high-fidelity-execution.jpg)

## Quotes Received

Best execution in illiquid markets is proven by architecting a defensible, process-driven evidentiary framework, not by finding a single price. </a><a href="https://prime.greeks.live/area/evaluated-pricing/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Precision-engineered multi-vane system with opaque, reflective, and translucent teal blades. This visualizes Institutional Grade Digital Asset Derivatives Market Microstructure, driving High-Fidelity Execution via RFQ protocols, optimizing Liquidity Pool aggregation, and Multi-Leg Spread management on a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/precision-engineered-multi-vane-system-illustrating-institutional-digital-asset-derivatives-rfq-protocols-market-microstructure-optimized-liquidity-aggregation-prime-os-high-fidelity-execution.jpg)

## Evaluated Pricing

Meaning ▴ Evaluated pricing refers to the process of determining the fair value of financial instruments, particularly those lacking active market quotes or sufficient liquidity, through the application of observable market data, valuation models, and expert judgment. </a><a href="https://prime.greeks.live/area/evaluated-price/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Parallel marked channels depict granular market microstructure across diverse institutional liquidity pools. A glowing cyan ring highlights an active Request for Quote RFQ for precise price discovery](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-high-fidelity-execution-3.jpg)

## Evaluated Price

Meaning ▴ The Evaluated Price represents a computationally derived valuation for a financial instrument, typically utilized when observable market prices are absent, unreliable, or require systemic consistency for internal accounting and risk management purposes. </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">
![Sharp, transparent, teal structures and a golden line intersect a dark void. This symbolizes market microstructure for institutional digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-precision-execution-leveraging-granular-market-microstructure-intelligence.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/trade-data/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Sleek, dark grey mechanism, pivoted centrally, embodies an RFQ protocol engine for institutional digital asset derivatives. Diagonally intersecting planes of dark, beige, teal symbolize diverse liquidity pools and complex market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-engine-powering-high-fidelity-execution-for-multi-leg-spreads-portfolio-margin-and-atomic-settlement-via-prime-os-for-block-trades.jpg)

## Trade Data

Meaning ▴ Trade Data constitutes the comprehensive, timestamped record of all transactional activities occurring within a financial market or across a trading platform, encompassing executed orders, cancellations, modifications, and the resulting fill details. </a><a href="https://prime.greeks.live/question/what-is-the-quantitative-relationship-between-the-number-of-dealers-queried-and-pre-trade-price-impact/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A precision-engineered system with a central gnomon-like structure and suspended sphere. This signifies high-fidelity execution for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/precision-engine-for-institutional-digital-asset-derivatives-rfq.jpg)

## Dealers Queried

The quantitative relationship between dealers queried and pre-trade price impact is a non-linear curve of diminishing, then negative, returns. </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">
![Abstractly depicting an Institutional Digital Asset Derivatives ecosystem. A robust base supports intersecting conduits, symbolizing multi-leg spread execution and smart order routing](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-engine-optimization.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/rts-28/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A dynamically balanced stack of multiple, distinct digital devices, signifying layered RFQ protocols and diverse liquidity pools. Each unit represents a unique private quotation within an aggregated inquiry system, facilitating price discovery and high-fidelity execution for institutional-grade digital asset derivatives via an advanced Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/dynamic-rfq-protocol-stacks-powering-institutional-digital-asset-derivatives-liquidity-aggregation-and-best-execution.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>

**Tags:** [Regulatory Reporting](https://options.greeks.live/area/regulatory-reporting/), [Request for Quote](https://options.greeks.live/area/request-for-quote/), [Transaction Cost Analysis](https://options.greeks.live/area/transaction-cost-analysis/), [Fixed Income Trading](https://options.greeks.live/area/fixed-income-trading/), [Execution Quality](https://options.greeks.live/area/execution-quality/), [Evaluated Pricing](https://options.greeks.live/area/evaluated-pricing/)	

## Discover More

- 
### [How Do Firms Quantitatively Prove Best Execution under MiFID II?](https://options.greeks.live/question/how-do-firms-quantitatively-prove-best-execution-under-mifid-ii/)
![A multi-faceted crystalline structure, featuring sharp angles and translucent blue and clear elements, rests on a metallic base. This embodies Institutional Digital Asset Derivatives and precise RFQ protocols, enabling High-Fidelity Execution. Light interaction depicts Price Discovery within complex Market Microstructure, leveraging a Prime RFQ Intelligence Layer for Multi-Leg Spread optimization and Capital Efficiency.](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-digital-asset-derivatives-rfq-market-microstructure.jpg)

Firms prove best execution by architecting a data-driven system that quantitatively validates execution quality against defined policy benchmarks.

- 
### [What Are the Full Technology Requirements for a MiFID II Compliant Best Execution System?](https://options.greeks.live/question/what-are-the-full-technology-requirements-for-a-mifid-ii-compliant-best-execution-system/)
![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. A central intelligence layer supports RFQ protocols, ensuring optimal price discovery and robust counterparty risk management for prime brokerage operations.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-engine-microstructure-2.jpg)

A MiFID II best execution system is a data-driven architecture designed to prove and improve execution quality across all trading operations.

- 
### [How Does Bond Liquidity Affect the Selection of TCA Benchmarks?](https://options.greeks.live/question/how-does-bond-liquidity-affect-the-selection-of-tca-benchmarks/)
![Two sleek, pointed objects intersect centrally, forming an 'X' against a dual-tone black and teal background. This embodies the high-fidelity execution of institutional digital asset derivatives via RFQ protocols, facilitating optimal price discovery and efficient cross-asset trading within a robust Prime RFQ, minimizing slippage and adverse selection.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-prime-os-microstructure.jpg)

Bond liquidity dictates TCA benchmark selection by defining the set of available and meaningful data points for performance measurement.

- 
### [In What Ways Do Best Execution Requirements Impact Liquidity Sourcing Strategies for Illiquid Bonds?](https://options.greeks.live/question/in-what-ways-do-best-execution-requirements-impact-liquidity-sourcing-strategies-for-illiquid-bonds/)
![A teal-blue disk, symbolizing a liquidity pool for digital asset derivatives, is intersected by a bar. This represents an RFQ protocol or block trade, detailing high-fidelity execution pathways. The interaction illustrates price discovery and market microstructure dynamics, central to a Prime RFQ.](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-rfq-protocols-high-fidelity-digital-asset-execution.jpg)

Best execution mandates systematize illiquid bond liquidity sourcing, converting it from a reactive search into a defensible, data-driven process.

- 
### [What Are the Regulatory Considerations for Best Execution When Using Off-Book Rfq Protocols?](https://options.greeks.live/question/what-are-the-regulatory-considerations-for-best-execution-when-using-off-book-rfq-protocols/)
![A detailed view of an institutional-grade Digital Asset Derivatives trading interface, featuring a central liquidity pool visualization through a clear, tinted disc. Subtle market microstructure elements are visible, suggesting real-time price discovery and order book dynamics. This represents a Prime RFQ component for high-fidelity execution of RFQ protocols in multi-leg spread strategies.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-rfq-execution-system-microstructure-display.jpg)

A firm's duty is to construct a defensible, evidence-based process that proves every RFQ execution systematically sought the best client outcome.

- 
### [In What Ways Does Transaction Cost Analysis Help Firms Meet MiFID II Best Execution Requirements?](https://options.greeks.live/question/in-what-ways-does-transaction-cost-analysis-help-firms-meet-mifid-ii-best-execution-requirements/)
![A sleek metallic teal execution engine, representing a Crypto Derivatives OS, interfaces with a luminous pre-trade analytics display. This abstract view depicts institutional RFQ protocols enabling high-fidelity execution for multi-leg spreads, optimizing market microstructure and atomic settlement.](https://options.greeks.live/wp-content/uploads/2025/07/advanced-institutional-digital-asset-derivatives-rfq-protocol-engine-for-high-fidelity-execution-and-market-microstructure-analysis.jpg)

TCA provides the essential quantitative evidence for firms to measure, monitor, and demonstrably prove adherence to MiFID II's best execution mandate.

- 
### [What Are the Key Differences in Applying Rts 28 Principles to Rfq versus Lit Markets?](https://options.greeks.live/question/what-are-the-key-differences-in-applying-rts-28-principles-to-rfq-versus-lit-markets/)
![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. It embodies RFQ optimization, Capital Efficiency across Liquidity Pools, and Atomic Settlement via a Prime RFQ.](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-digital-asset-derivatives-rfq-market-microstructure-2.jpg)

Applying RTS 28 requires a bifurcated system: quantitative benchmarking for lit markets and qualitative process validation for RFQ protocols.

- 
### [How Does the Best Execution Obligation Apply When a Firm Acts as a Systematic Internaliser?](https://options.greeks.live/question/how-does-the-best-execution-obligation-apply-when-a-firm-acts-as-a-systematic-internaliser/)
![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)

A Systematic Internaliser's best execution duty is met by proving its internal prices are superior to public markets through a data-driven, verifiable operational framework.

- 
### [How Does the Suspension of Rts 28 Affect the Role of a Firm’s Best Execution Committee?](https://options.greeks.live/question/how-does-the-suspension-of-rts-28-affect-the-role-of-a-firms-best-execution-committee/)
![Reflective and circuit-patterned metallic discs symbolize the Prime RFQ powering institutional digital asset derivatives. This depicts deep market microstructure enabling high-fidelity execution through RFQ protocols, precise price discovery, and robust algorithmic trading within aggregated liquidity pools.](https://options.greeks.live/wp-content/uploads/2025/08/prime-os-architecture-driving-institutional-digital-asset-derivatives-rfq-protocols-for-optimal-liquidity-and-best-execution.jpg)

The suspension of RTS 28 elevates the Best Execution Committee's role from report validator to architect of a qualitative oversight system.

---

## Raw Schema Data

```json
{
    "@context": "https://schema.org",
    "@type": "BreadcrumbList",
    "itemListElement": [
        {
            "@type": "ListItem",
            "position": 1,
            "name": "Home",
            "item": "https://options.greeks.live"
        },
        {
            "@type": "ListItem",
            "position": 2,
            "name": "Question",
            "item": "https://options.greeks.live/question/"
        },
        {
            "@type": "ListItem",
            "position": 3,
            "name": "How Do Firms Quantitatively Prove Best Execution for Illiquid Bonds under MiFID II?",
            "item": "https://options.greeks.live/question/how-do-firms-quantitatively-prove-best-execution-for-illiquid-bonds-under-mifid-ii/"
        }
    ]
}
```

```json
{
    "@context": "https://schema.org",
    "@type": "Organization",
    "@id": "https://greeks.live/#organization",
    "name": "Greeks.Live",
    "url": "https://greeks.live/",
    "description": "Greeks.live is the definitive toolkit for the professional options trader, dedicated to empowering our users with institutional-grade data, advanced analytics, and a comprehensive suite of trading tools designed to provide a decisive edge in the market. Every article and guide published under the Greeks.live name is a product of our deep commitment to data-driven analysis and our mission to support the global trading community.",
    "email": "support@greeks.live",
    "logo": {
        "@type": "ImageObject",
        "url": "https://options.greeks.live/wp-content/uploads/2025/07/Greeks.Live-Logo-Icon.svg"
    },
    "hasPart": [
        {
            "@type": "WebSite",
            "name": "About Us",
            "url": "https://about.greeks.live"
        },
        {
            "@type": "WebSite",
            "name": "App Download Page",
            "url": "https://about.greeks.live/#/download/basic_trade"
        },
        {
            "@type": "WebSite",
            "name": "Newcomers' Guide",
            "url": "https://twisty-sign-c8b.notion.site/Guide-for-Greeks-live-X-Deribit-Newbies-5a08a3052822427d800af6eaf3704c8d"
        },
        {
            "@type": "WebSite",
            "name": "Knowledge Base",
            "url": "https://linktr.ee/greeks.live"
        },
        {
            "@type": "WebSite",
            "name": "Option Terminology",
            "url": "https://greekslive.notion.site/88dfc00e7c584d4d8969b6302a79a12f?pvs=4"
        },
        {
            "@type": "WebSite",
            "name": "Terms of Service",
            "url": "https://greeks.live/#/tos"
        },
        {
            "@type": "WebSite",
            "name": "Disclaimer",
            "url": "https://greeks.live/#/disclaimer"
        }
    ],
    "sameAs": [
        "https://x.com/greekslive",
        "https://youtube.com/@greeks_live?si=-KjT0Lkw4WUCI0tD",
        "https://t.me/greekslive_notifications",
        "https://t.me/greekslive",
        "https://pinterest.com/greekslive/"
    ],
    "makesOffer": [
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "RFQ Platform",
                "url": "https://rfq.greeks.live",
                "description": "Execute institutional-grade block trades for crypto options and futures. This platform provides deep, over-the-counter (OTC) liquidity via a professional Request for Quote system.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Lending Tools",
                "url": "https://lend.greeks.live",
                "description": "Manage crypto lending and borrowing activities to earn yield or secure loans. This suite of tools helps users analyze interest rates and manage collateralized debt positions.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Data Lab",
                "url": "https://greeks.live/#/deribit/tools/datalab/BTC",
                "description": "Analyze historical and real-time options data with advanced metrics. This tool is designed for backtesting strategies and identifying market trends through comprehensive data visualization.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Profit & Loss Analysis (PnL)",
                "url": "https://greeks.live/#/deribit/tools/pnl_analysis",
                "description": "Track and analyze the Profit and Loss (PnL) of your options portfolio. This tool provides detailed performance metrics to help traders evaluate and refine their strategies.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Position Visualization",
                "url": "https://greeks.live/#/deribit/tools/pv/BTC",
                "description": "Visualize complex options positions and their corresponding risk profiles. This tool generates payoff diagrams to help traders intuitively understand potential profit, loss, and exposure.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Options Calculator",
                "url": "https://greeks.live/#/deribit/tools/calculator",
                "description": "Calculate the theoretical price and risk parameters ('the Greeks') of crypto options. An essential tool for pricing new trades and analyzing the sensitivity of existing positions.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Greeks.live Main Platform",
                "url": "https://greeks.live/",
                "description": "The central hub for the Greeks.live suite of professional cryptocurrency options and derivatives trading tools. Access analytics, manage positions, and explore the ecosystem.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Community Forum",
                "url": "https://t.greeks.live",
                "description": "Join the official Greeks.live community. Connect with other traders, share insights, and receive the latest updates directly from the team.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Greeks.live for Deribit",
                "url": "http://deribit.greeks.live",
                "description": "A dedicated interface for trading on the Deribit exchange. This platform leverages Greeks.live's advanced analytics and tools specifically for users of Deribit's options and futures markets.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Greeks.live for OKX",
                "url": "http://okx.greeks.live",
                "description": "A dedicated interface for trading on the OKX exchange. This platform integrates Greeks.live's powerful analytics with the OKX marketplace, focusing on its options and derivatives products.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "GLVS.AI Trading Platform",
                "url": "https://www.glvs.ai/",
                "description": "An AI-powered platform for automated crypto options trading. Leverage advanced algorithms and data-driven signals to develop and deploy sophisticated, hands-free trading strategies.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "API Testnet & Sandbox",
                "url": "https://test.greeks.live",
                "description": "A dedicated testnet environment for developers to test their API integrations and automated trading strategies. This sandbox allows for full functionality testing without risking real funds.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        }
    ],
    "subOrganization": [
        {
            "@type": "Organization",
            "name": "GreeksLive HK Co., Limited",
            "email": "support@greeks.live",
            "telephone": "+852-56418949",
            "address": {
                "@type": "PostalAddress",
                "streetAddress": "Unit 11, 27/F, K. Wah Centre, 191 Java Road",
                "addressLocality": "Hong Kong",
                "addressRegion": "North Point",
                "addressCountry": "CN",
                "postalCode": "0000"
            },
            "geo": {
                "@type": "GeoCoordinates",
                "latitude": "22.2932357",
                "longitude": "114.2022026"
            },
            "image": "https://options.greeks.live/wp-content/uploads/2025/08/Wah-Centre-Hong-Kong.jpg"
        }
    ]
}
```

```json
{
    "@context": "https://schema.org",
    "@type": "Article",
    "mainEntityOfPage": {
        "@type": "WebPage",
        "@id": "https://options.greeks.live/question/how-do-firms-quantitatively-prove-best-execution-for-illiquid-bonds-under-mifid-ii/"
    },
    "headline": "How Do Firms Quantitatively Prove Best Execution for Illiquid Bonds under MiFID II? \u25b4 Question",
    "description": "Firms prove best execution for illiquid bonds by systematically capturing all quote data and comparing executed prices against defensible, multi-faceted benchmarks. \u25b4 Question",
    "url": "https://options.greeks.live/question/how-do-firms-quantitatively-prove-best-execution-for-illiquid-bonds-under-mifid-ii/",
    "datePublished": "2025-08-07T12:54:26+00:00",
    "dateModified": "2025-08-07T12:54:32+00:00",
    "articleSection": [
        "Question"
    ],
    "author": {
        "@id": "https://greeks.live/#organization"
    },
    "publisher": {
        "@id": "https://greeks.live/#organization"
    },
    "image": {
        "@type": "ImageObject",
        "url": "https://options.greeks.live/wp-content/uploads/2025/07/multi-faceted-institutional-digital-asset-derivatives-execution-infrastructure.jpg",
        "caption": "A multi-faceted geometric object, displaying diverse reflective surfaces, rests on a dark, textured, curved base. This encapsulates the sophisticated interplay of RFQ protocols and deep liquidity pool dynamics, crucial for institutional options trading and digital asset derivatives. It highlights granular market microstructure, enabling high-fidelity execution, optimal price discovery, and capital efficiency via a Prime RFQ, mitigating systemic risk and ensuring regulatory compliance."
    },
    "keywords": [
        "Best Execution",
        "Evaluated Price",
        "Evaluated Pricing",
        "Execution Quality",
        "Fixed Income Trading",
        "Illiquid Bonds",
        "Market Microstructure",
        "MiFID II",
        "Quantitative Analysis",
        "Quantitative Proof",
        "Regulatory Reporting",
        "Request for Quote",
        "RTS 28",
        "Trade Data",
        "Transaction Cost Analysis"
    ]
}
```

```json
{
    "@context": "https://schema.org",
    "@type": "WebSite",
    "url": "https://options.greeks.live/",
    "potentialAction": {
        "@type": "SearchAction",
        "target": "https://options.greeks.live/?s=search_term_string",
        "query-input": "required name=search_term_string"
    }
}
```


---

**Original URL:** https://options.greeks.live/question/how-do-firms-quantitatively-prove-best-execution-for-illiquid-bonds-under-mifid-ii/
