# How Do LIS and SSTI Thresholds Directly Impact RFQ Pricing Strategy? ▴ Question

**Published:** 2025-08-04
**Categories:** Question

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![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](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-rfq-execution-system-microstructure-display.jpg)

![Intersecting opaque and luminous teal structures symbolize converging RFQ protocols for multi-leg spread execution. Surface droplets denote market microstructure granularity and slippage](https://options.greeks.live/wp-content/uploads/2025/07/rfq-protocols-for-digital-asset-derivatives-high-fidelity-execution.jpg)

## Concept

The architecture of modern financial markets is a complex interplay of regulated transparency and sanctioned discretion. Within this system, the [Request for Quote](https://prime.greeks.live/area/request-for-quote/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (RFQ) protocol serves as a foundational mechanism for sourcing liquidity, particularly for large or illiquid instruments. It is a bilateral, or semi-bilateral, price discovery process where an initiator solicits binding prices from a select group of [liquidity providers](https://prime.greeks.live/area/liquidity-providers/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite).

The core function of an RFQ is to facilitate efficient [risk transfer](https://prime.greeks.live/area/risk-transfer/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) with a controlled information footprint. However, the strategic utility of this protocol is directly governed by a set of regulatory thresholds established under frameworks like Europe’s MiFID II ▴ [Large-in-Scale](https://prime.greeks.live/area/large-in-scale/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (LIS) and Size Specific to the Instrument (SSTI).

These thresholds are not arbitrary figures; they are calculated parameters that function as critical gateways within the market’s operating system. They define the point at which a trade is considered large enough to warrant an exemption from the default state of [pre-trade transparency](https://prime.greeks.live/area/pre-trade-transparency/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). For orders below these thresholds, any corresponding quotes in an RFQ system must, in many cases, be made public, contributing to the lit market’s price discovery process. This exposure carries the inherent risk of [information leakage](https://prime.greeks.live/area/information-leakage/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), where the intention to execute a large trade can move the market price adversely before the trade is completed.

> A transaction’s size relative to LIS and SSTI thresholds fundamentally dictates whether its execution strategy prioritizes open price discovery or discreet liquidity capture.

When an order’s size surpasses the LIS or SSTI watermark, the market’s rules of engagement shift. The obligation for pre-trade transparency is waived. This waiver transforms the RFQ from a semi-public inquiry into a truly private negotiation channel. It allows a portfolio manager or trader to source liquidity for a block order without broadcasting their intent to the wider market, thereby preserving the integrity of their execution price.

This bifurcation of the trading landscape is the central mechanism through which LIS and SSTI thresholds exert their influence. They create two distinct modes of RFQ operation ▴ a transparent mode for smaller trades and a discretionary, off-book mode for institutional-sized blocks. The pricing strategy for any given RFQ is therefore a direct consequence of which mode it is permitted to operate in, a determination made solely by its size relative to these regulatory lines in the sand.

![A sleek, spherical, off-white device with a glowing cyan lens symbolizes an Institutional Grade Prime RFQ Intelligence Layer. It drives High-Fidelity Execution of Digital Asset Derivatives via RFQ Protocols, enabling Optimal Liquidity Aggregation and Price Discovery for Market Microstructure Analysis](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-optimal-execution-1.jpg)

## The Regulatory Architecture of Discretion

To understand the impact on pricing, one must first appreciate the design philosophy behind [these thresholds](https://prime.greeks.live/question/can-these-models-be-applied-to-less-liquid-markets-like-certain-cryptocurrencies/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). MiFID II aimed to increase market transparency to protect investors and improve [price discovery](https://prime.greeks.live/area/price-discovery/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). However, regulators recognized that forcing full pre-trade transparency on very large orders could be counterproductive.

It would expose liquidity providers to excessive risk, causing them to quote wider, less aggressive prices or withdraw from providing liquidity altogether. This phenomenon, known as undue risk, would ultimately harm the very investors the regulation sought to protect by increasing their execution costs.

The solution was a system of waivers based on trade size, creating a calibrated balance between transparency and liquidity.

- **Large-in-Scale (LIS)** ▴ This threshold is designed to identify orders that are significantly larger than the typical market size for a specific financial instrument. The calculation is based on percentiles of the distribution of trade sizes, often set at a high percentile like the 70th for pre-trade waivers. An order exceeding the [LIS threshold](https://prime.greeks.live/area/lis-threshold/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) is granted a waiver from pre-trade transparency, allowing it to be negotiated privately.

- **Size Specific to the Instrument (SSTI)** ▴ This threshold serves a similar function but is calibrated differently, often at a lower percentile (e.g. the 60th) than LIS. It applies to specific scenarios, such as actionable indications of interest within RFQ systems, providing another avenue to avoid pre-trade disclosure for reasonably sized trades that still pose a risk to liquidity providers if made public.

These thresholds are dynamic and vary by asset class and even by individual instrument, reflecting the unique liquidity profile of each market segment. For a corporate bond that trades infrequently, the LIS threshold might be relatively low in absolute notional terms. For a highly liquid government bond, the threshold will be substantially higher.

This calibration ensures the waivers are applied appropriately, shielding legitimate institutional risk transfer without creating an opaque shadow market for retail-sized trades. The direct consequence is that a trading desk’s [RFQ strategy](https://prime.greeks.live/area/rfq-strategy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) cannot be monolithic; it must be adaptive, constantly referencing these regulatory thresholds to determine the optimal execution path for each order.

![A disaggregated institutional-grade digital asset derivatives module, off-white and grey, features a precise brass-ringed aperture. It visualizes an RFQ protocol interface, enabling high-fidelity execution, managing counterparty risk, and optimizing price discovery within market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-derivatives-rfq-protocol-modular-execution-intelligence-system.jpg)

![A central dark aperture, like a precision matching engine, anchors four intersecting algorithmic pathways. Light-toned planes represent transparent liquidity pools, contrasting with dark teal sections signifying dark pool or latent liquidity](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-engine-9.jpg)

## Strategy

The strategic implications of LIS and SSTI thresholds on RFQ pricing are rooted in the fundamental tension between information leakage and [adverse selection](https://prime.greeks.live/area/adverse-selection/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). For the buy-side institution initiating the RFQ, the primary goal is to minimize the cost of execution, a significant component of which is the [market impact](https://prime.greeks.live/area/market-impact/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) caused by information about the trade leaking into the market. For the sell-side dealer responding to the RFQ, the primary concern is managing risk, specifically the risk of trading with a counterparty who possesses superior short-term information about price direction ▴ adverse selection. LIS and SSTI thresholds act as the fulcrum upon which these competing strategic interests are balanced, directly shaping the pricing calculus for both parties.

![Abstract forms depict institutional liquidity aggregation and smart order routing. Intersecting dark bars symbolize RFQ protocols enabling atomic settlement for multi-leg spreads, ensuring high-fidelity execution and price discovery of digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-high-fidelity-execution-2.jpg)

## A Bifurcated Strategic Landscape

The existence of these thresholds effectively creates two parallel strategic universes for RFQ execution. The choice of which universe to operate in is determined by the size of the order. This choice then dictates the entire approach to [dealer selection](https://prime.greeks.live/question/how-can-a-firm-prove-its-algorithmic-dealer-selection-is-fair/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), quote competition, and price acceptance.

![A sleek, abstract system interface with a central spherical lens representing real-time Price Discovery and Implied Volatility analysis for institutional Digital Asset Derivatives. Its precise contours signify High-Fidelity Execution and robust RFQ protocol orchestration, managing latent liquidity and minimizing slippage for optimized Alpha Generation](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-institutional-digital-asset-derivatives-execution-via-optimized-rfq-protocols-enhancing-market-microstructure.jpg)

## Strategy 1 the Sub-Threshold Universe of Competitive Transparency

When an order is below the LIS/SSTI thresholds, the RFQ process is subject to pre-trade transparency rules. This means the quotes provided by dealers may be publicly disclosed. This environment necessitates a strategy focused on maximizing competition to achieve the tightest possible spread.

- **Information Posture** ▴ The initiator’s trading intent is semi-public. The primary risk is signaling, where the appearance of an RFQ can alert the market to buying or selling interest.

- **Dealer Selection** ▴ The strategy often involves querying a wider panel of liquidity providers. Since the information will be disseminated anyway, the benefit of broad competition outweighs the risk of information leakage to any single dealer.

- **Pricing Dynamic** ▴ Dealer pricing is highly competitive. The knowledge that their quote will be compared against many others, and potentially made public, incentivizes dealers to price aggressively, close to the prevailing lit-market bid or offer. The adverse selection risk for the dealer is perceived as lower because the trade size is smaller and part of the “standard” market flow. The spread quoted is primarily a function of inventory costs and standard processing fees.

![Engineered object with layered translucent discs and a clear dome encapsulating an opaque core. Symbolizing market microstructure for institutional digital asset derivatives, it represents a Principal's operational framework for high-fidelity execution via RFQ protocols, optimizing price discovery and capital efficiency within a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-rfq-protocol-execution-intelligence-engine.jpg)

## Strategy 2 the Supra-Threshold Universe of Discretionary Negotiation

For an order that qualifies for a LIS or SSTI waiver, the strategic priority shifts dramatically from competition to discretion. The ability to negotiate privately without pre-trade transparency is a valuable asset, and the strategy is designed to protect it.

- **Information Posture** ▴ The initiator’s trading intent is private. The primary goal is to prevent any information leakage that could lead to market impact.

- **Dealer Selection** ▴ The strategy involves curating a very small, select group of trusted dealers. Sending an RFQ for a block trade, even privately, is a significant grant of information. The initiator will only share this information with counterparties who have a strong incentive to price the risk fairly and protect the confidentiality of the inquiry.

- **Pricing Dynamic** ▴ Dealer pricing becomes a more complex calculation. The competitive pressure is lower due to the limited number of recipients. The dominant factor in the dealer’s pricing model becomes the premium charged for taking on substantial risk in a private setting. This premium has two main components:

<li>**Adverse Selection Premium** ▴ The dealer must assume the RFQ initiator may have short-term informational advantages. The larger the trade, the greater the potential loss if the market moves against the dealer’s newly acquired position. This risk is priced directly into the quote, widening the spread.

- **[Inventory Risk Premium](https://prime.greeks.live/area/inventory-risk-premium/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite)** ▴ A block trade can significantly alter a dealer’s inventory. The cost of hedging this new position or the risk of holding it until it can be unwound is passed on to the initiator.

</li>

> The strategic decision to cross the LIS threshold transforms an RFQ from a quest for the tightest competitive price into a calculated negotiation for discreet risk transfer.

![Interlocking transparent and opaque geometric planes on a dark surface. This abstract form visually articulates the intricate Market Microstructure of Institutional Digital Asset Derivatives, embodying High-Fidelity Execution through advanced RFQ protocols](https://options.greeks.live/wp-content/uploads/2025/07/geometric-abstraction-of-institutional-digital-asset-derivatives-market-microstructure-driving-high-fidelity-execution-via-principal-rfq-protocols-and-optimal-liquidity-aggregation.jpg)

## How Do LIS Thresholds Influence Dealer Quoting Behavior?

A dealer’s quoting engine is a sophisticated system that prices risk in real-time. The LIS/SSTI status of an incoming RFQ is a critical input parameter that toggles the risk models applied. A dealer receiving a LIS-sized RFQ understands that the initiator is likely executing a large parent order and is highly sensitive to market impact. The dealer also knows the initiator has chosen them specifically for their ability to handle large risk discreetly.

This changes the nature of the negotiation from a simple price-point competition to a partnership in risk management, albeit a temporary and adversarial one. The dealer’s quote will reflect this reality, embedding a premium for the service of providing discreet, guaranteed execution for a size that the lit market cannot easily absorb.

The following table illustrates the strategic and pricing differences in these two universes:

| Factor | Sub-LIS/SSTI RFQ Strategy | Supra-LIS/SSTI RFQ Strategy |
| --- | --- | --- |
| Primary Goal | Price Improvement through Competition | Market Impact Minimization through Discretion |
| Information Control | Low (subject to pre-trade transparency) | High (private negotiation channel) |
| Dealer Panel Size | Broad (e.g. 5-10 dealers) | Narrow and curated (e.g. 1-3 trusted dealers) |
| Dominant Pricing Factor | Competitive Pressure | Adverse Selection & Inventory Risk Premium |
| Resulting Spread | Tight, close to lit market BBO | Wider, reflecting the cost of discreet risk transfer |
| Execution Analogy | Public Auction | Private, Sealed-Bid Negotiation |

![A symmetrical, intricate digital asset derivatives execution engine. Its metallic and translucent elements visualize a robust RFQ protocol facilitating multi-leg spread execution](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-best-execution.jpg)

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

## Execution

The execution of an RFQ strategy in a market governed by LIS and SSTI thresholds is a precise, data-driven process. It requires a synthesis of regulatory knowledge, quantitative analysis, and technological integration. For an institutional trading desk, mastering this process is a core competency that directly translates to improved performance and reduced transaction costs. The execution framework is not merely about sending a request and receiving a price; it is a systematic procedure for managing information, risk, and relationships in a fragmented liquidity landscape.

![Two off-white elliptical components separated by a dark, central mechanism. This embodies an RFQ protocol for institutional digital asset derivatives, enabling price discovery for block trades, ensuring high-fidelity execution and capital efficiency within a Prime RFQ for dark liquidity](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-engine-4.jpg)

## The Operational Playbook an LIS Aware RFQ Workflow

A buy-side trader executing a large order must follow a disciplined workflow that begins the moment an order arrives. This process ensures that the regulatory advantages of LIS/SSTI waivers are fully leveraged while the associated risks are methodically managed.

- **Order Assessment and Threshold Verification** ▴ The first step is to analyze the order’s characteristics. The trader’s [Execution Management System](https://prime.greeks.live/area/execution-management-system/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (EMS) must be populated with up-to-date LIS and [SSTI threshold](https://prime.greeks.live/area/ssti-threshold/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) data for the relevant instrument. The system automatically flags the order as either “Sub-Threshold” or “Supra-Threshold.” This initial classification determines the entire subsequent execution path.

- **Execution Path Selection** ▴ If the order is flagged as “Supra-Threshold,” the trader confirms that an RFQ is the optimal execution channel. Alternatives might include using a dark pool aggregator or an algorithmic strategy like a Volume-Weighted Average Price (VWAP) schedule. The decision to use an RFQ is a strategic one, typically made when the need for certainty of execution and minimal information leakage outweighs the potential for price improvement from more passive strategies.

- **Curated Dealer Panel Selection** ▴ For a LIS-sized RFQ, the trader does not blast a request to a wide audience. Instead, they consult internal data on liquidity provider performance. They select a small number of dealers (often just two or three) based on historical performance in that specific asset class, their perceived risk appetite, and the existing relationship. This is a critical step in controlling information leakage.

- **Staggered RFQ Issuance** ▴ To further mitigate risk, a sophisticated trader may not query all selected dealers simultaneously. They might initiate an RFQ with a single, most-trusted dealer first. If the price is acceptable, the trade is done, and no further information is leaked. If the price is not compelling, they may then approach a second dealer, using the first quote as a benchmark.

- **Quote Evaluation and Benchmarking** ▴ When quotes are received, they are not simply compared against each other. The trader’s EMS will benchmark them in real-time against a variety of metrics, such as the lit market’s mid-price, the arrival price (the price at the time the order was received), and internal [transaction cost analysis](https://prime.greeks.live/area/transaction-cost-analysis/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (TCA) models. The evaluation of a LIS-RFQ quote explicitly accounts for the embedded [risk premium](https://prime.greeks.live/area/risk-premium/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), judging whether the wider spread is a fair price for the discretion and immediacy offered.

- **Execution and Post-Trade Reporting** ▴ Upon executing the trade, the system confirms the transaction. While the trade was exempt from pre-trade transparency, it is still subject to [post-trade transparency](https://prime.greeks.live/area/post-trade-transparency/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) rules. The execution report will be sent to an Approved Publication Arrangement (APA), but its publication may be deferred, again based on [MiFID II](https://prime.greeks.live/area/mifid-ii/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) rules for large trades. This deferral gives the dealer time to hedge and manage their position before the full size of the trade is known to the public, further reducing their risk and, by extension, the price they needed to charge the initiator.

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## Quantitative Modeling the Price of Discretion

The impact of crossing the LIS threshold on [RFQ pricing](https://prime.greeks.live/area/rfq-pricing/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) can be modeled quantitatively. Dealers’ pricing engines explicitly factor in the additional risks associated with large, private trades. The following table provides a simplified model of how a dealer’s spread might be constructed, illustrating the direct impact of the LIS flag.

| Pricing Component | Sub-LIS RFQ Calculation | Supra-LIS RFQ Calculation | Description |
| --- | --- | --- | --- |
| Reference Price | €100.00 | €100.00 | The current mid-point of the lit market bid/ask spread. |
| Base Spread | +/- €0.02 | +/- €0.02 | The standard bid/ask spread for a standard market size trade, covering operational costs. |
| Adverse Selection Premium | +/- €0.01 | +/- €0.10 | A premium to compensate for the risk of trading against an informed counterparty. This component increases dramatically for LIS trades due to the high potential impact of the private information. |
| Inventory Risk Premium | +/- €0.005 | +/- €0.08 | The cost of holding or hedging a large, illiquid position. This is negligible for small trades but significant for block sizes. |
| Competitive Pressure Discount | – €0.01 | – €0.00 | A discount applied when the dealer knows they are in a highly competitive auction. This is absent in a discreet, limited-dealer RFQ. |
| Final Quoted Price (Sell) | €100.025 | €100.20 | The final price offered to the RFQ initiator. The price for the LIS trade is significantly wider, reflecting the price of discretion and risk transfer. |

![Precision-engineered modular components, with teal accents, align at a central interface. This visually embodies an RFQ protocol for institutional digital asset derivatives, facilitating principal liquidity aggregation and high-fidelity execution](https://options.greeks.live/wp-content/uploads/2025/07/precision-engineered-institutional-digital-asset-derivatives-rfq-execution-interface-for-atomic-settlement.jpg)

## What Is the Role of Technology in Managing RFQ Workflows?

Technology is the enabling layer for executing these complex strategies. Modern [Execution Management](https://prime.greeks.live/area/execution-management/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) Systems are not just order-routing machines; they are sophisticated decision-support tools.

- **Data Integration** ▴ The EMS must have real-time feeds for LIS/SSTI thresholds, market data, and internal TCA data. This allows for the instant classification and benchmarking described in the playbook.

- **Workflow Automation** ▴ The system automates the RFQ process, from dealer selection based on pre-set rules to the integration of quotes into the trader’s blotter for analysis.

- **[FIX Protocol](https://prime.greeks.live/area/fix-protocol/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) Messaging** ▴ The Financial Information eXchange (FIX) protocol is the language of electronic trading. When an RFQ is sent and a trade is executed, specific FIX tags are used to convey the regulatory context of the trade. For example, the TrdType or TradeCondition fields can be populated with values that signify a LIS trade. This ensures that all parties, from the buy-side to the sell-side to the APA, have a consistent, machine-readable record of the trade’s regulatory status, ensuring correct processing and reporting. This seamless flow of data is essential for efficient and compliant execution in a complex regulatory environment.

![Angularly connected segments portray distinct liquidity pools and RFQ protocols. A speckled grey section highlights granular market microstructure and aggregated inquiry complexities for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-efficiency.jpg)

## References

- O’Hara, Maureen. _Market Microstructure Theory_. Blackwell Publishers, 1995.

- Harris, Larry. _Trading and Exchanges ▴ Market Microstructure for Practitioners_. Oxford University Press, 2003.

- European Securities and Markets Authority. “MiFID II and MiFIR.” ESMA, 2014.

- Madhavan, Ananth. “Market microstructure ▴ A survey.” _Journal of Financial Markets_, vol. 3, no. 3, 2000, pp. 205-258.

- Bessembinder, Hendrik, and Herbert M. Spilker. “The trading structure of the government bond market and its effect on price transparency and execution costs.” _Journal of Financial Markets_, vol. 14, no. 4, 2011, pp. 726-753.

- Glosten, Lawrence R. and Paul R. Milgrom. “Bid, ask and transaction prices in a specialist market with heterogeneously informed traders.” _Journal of Financial Economics_, vol. 14, no. 1, 1985, pp. 71-100.

- Kyle, Albert S. “Continuous auctions and insider trading.” _Econometrica_, vol. 53, no. 6, 1985, pp. 1315-1335.

- FIX Trading Community. “FIX Market Model Typology (MMT).” 2020.

- Tradeweb Markets. “MiFID II and Swaps Transparency ▴ What You Need to Know.” 2015.

- International Capital Market Association. “MiFID II/MiFIR ▴ Transparency & Best Execution requirements in respect of bonds.” 2016.

![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)

## Reflection

The integration of LIS and SSTI thresholds into the market’s operating system provides a clear framework for executing large trades. Yet, true mastery extends beyond simply knowing the rules. The data derived from every RFQ negotiation ▴ every accepted and rejected quote, every dealer’s response time, every measure of post-trade market impact ▴ is a valuable input. How does this continuous stream of execution data feed back into your own institution’s strategic model?

The thresholds provide the gateway, but the intelligence gathered from each passage through that gateway is what builds a lasting competitive advantage. The ultimate question is how an operational framework transforms regulatory constraints into a proprietary source of execution alpha.

![A precision-engineered metallic and glass system depicts the core of an Institutional Grade Prime RFQ, facilitating high-fidelity execution for Digital Asset Derivatives. Transparent layers represent visible liquidity pools and the intricate market microstructure supporting RFQ protocol processing, ensuring atomic settlement capabilities](https://options.greeks.live/wp-content/uploads/2025/08/robust-institutional-digital-asset-derivatives-trading-platform-for-optimized-rfq-protocol-execution-and-deep-liquidity-access.jpg)

## Glossary

<a href="https://prime.greeks.live/area/liquidity-providers/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Interlocking geometric forms, concentric circles, and a sharp diagonal element depict the intricate market microstructure of institutional digital asset derivatives. Concentric shapes symbolize deep liquidity pools and dynamic volatility surfaces](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-and-high-fidelity-execution.jpg)

## Liquidity Providers

Meaning ▴ Liquidity Providers are market participants, typically institutional entities or sophisticated trading firms, that facilitate efficient market operations by continuously quoting bid and offer prices for financial instruments. </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">
![A gleaming, translucent sphere with intricate internal mechanisms, flanked by precision metallic probes, symbolizes a sophisticated Principal's RFQ engine. This represents the atomic settlement of multi-leg spread strategies, enabling high-fidelity execution and robust price discovery within institutional digital asset derivatives markets, minimizing latency and slippage for optimal alpha generation and capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/inst-digital-asset-deriv-rfq-os-for-optimal-high-fidelity-trade-exec.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/area/large-in-scale/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Abstract planes illustrate RFQ protocol execution for multi-leg spreads. A dynamic teal element signifies high-fidelity execution and smart order routing, optimizing price discovery](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-optimization.jpg)

## Large-In-Scale

Meaning ▴ Large-in-Scale designates an order quantity significantly exceeding typical displayed liquidity on lit exchanges, necessitating specialized execution protocols to mitigate market impact and price dislocation. </a><a href="https://prime.greeks.live/area/risk-transfer/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Sleek, modular infrastructure for institutional digital asset derivatives trading. Its intersecting elements symbolize integrated RFQ protocols, facilitating high-fidelity execution and precise price discovery across complex multi-leg spreads](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-system-optimizing-high-fidelity-block-trade-liquidity-and-multi-leg-spread-precision.jpg)

## Risk Transfer

Meaning ▴ Risk Transfer reallocates financial exposure from one entity to another. </a><a href="https://prime.greeks.live/area/pre-trade-transparency/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sophisticated proprietary system module featuring precision-engineered components, symbolizing an institutional-grade Prime RFQ for digital asset derivatives. Its intricate design represents market microstructure analysis, RFQ protocol integration, and high-fidelity execution capabilities, optimizing liquidity aggregation and price discovery for block trades within a multi-leg spread environment](https://options.greeks.live/wp-content/uploads/2025/07/institutional-grade-proprietary-architecture-driving-high-fidelity-digital-asset-derivatives-execution-via-rfq-protocols-and-optimized-market-microstructure-dynamics.jpg)

## Pre-Trade Transparency

Meaning ▴ Pre-Trade Transparency refers to the real-time dissemination of bid and offer prices, along with associated sizes, prior to the execution of a trade. </a><a href="https://prime.greeks.live/area/information-leakage/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A reflective disc, symbolizing a Prime RFQ data layer, supports a translucent teal sphere with Yin-Yang, representing Quantitative Analysis and Price Discovery for Digital Asset Derivatives. A sleek mechanical arm signifies High-Fidelity Execution and Algorithmic Trading via RFQ Protocol, within a Principal's Operational Framework](https://options.greeks.live/wp-content/uploads/2025/07/precision-execution-digital-asset-derivatives-rfq-protocols-principal-trading-infrastructure-automated-liquidity-aggregation-intelligence-layer.jpg)

## Information Leakage

Meaning ▴ Information leakage denotes the unintended or unauthorized disclosure of sensitive trading data, often concerning an institution's pending orders, strategic positions, or execution intentions, to external market participants. </a><a href="https://prime.greeks.live/question/can-these-models-be-applied-to-less-liquid-markets-like-certain-cryptocurrencies/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![An abstract composition featuring two intersecting, elongated objects, beige and teal, against a dark backdrop with a subtle grey circular element. This visualizes RFQ Price Discovery and High-Fidelity Execution for Multi-Leg Spread Block Trades within a Prime Brokerage Crypto Derivatives OS for Institutional Digital Asset Derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-options-rfq-for-multi-leg-spreads-price-discovery.jpg)

## These Thresholds

Applying financial models to illiquid crypto requires adapting their logic to the market's microstructure for precise, risk-managed execution. </a><a href="https://prime.greeks.live/area/price-discovery/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Abstract layered forms visualize market microstructure, featuring overlapping circles as liquidity pools and order book dynamics. A prominent diagonal band signifies RFQ protocol pathways, enabling high-fidelity execution and price discovery for institutional digital asset derivatives, hinting at dark liquidity and capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-institutional-digital-asset-derivatives-rfq-protocol.jpg)

## Price Discovery

Meaning ▴ Price discovery is the continuous, dynamic process by which the market determines the fair value of an asset through the collective interaction of supply and demand. </a><a href="https://prime.greeks.live/area/lis-threshold/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sophisticated, illuminated device representing an Institutional Grade Prime RFQ for Digital Asset Derivatives. Its glowing interface indicates active RFQ protocol execution, displaying high-fidelity execution status and price discovery for block trades](https://options.greeks.live/wp-content/uploads/2025/07/principal-rfq-engine-for-digital-asset-derivatives-best-execution-1.jpg)

## Lis Threshold

Meaning ▴ The LIS Threshold represents a dynamically determined order size benchmark, classifying trades as "Large In Scale" to delineate distinct market microstructure rules, primarily concerning pre-trade transparency obligations and enabling different execution methodologies for institutional digital asset derivatives. </a><a href="https://prime.greeks.live/area/rfq-strategy/?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)

## Rfq Strategy

Meaning ▴ An RFQ Strategy, or Request for Quote Strategy, defines a systematic approach for institutional participants to solicit price quotes from multiple liquidity providers for a specific digital asset derivative instrument. </a><a href="https://prime.greeks.live/area/adverse-selection/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, illuminated object, symbolizing an advanced RFQ protocol or Execution Management System, precisely intersects two broad surfaces representing liquidity pools within market microstructure. Its glowing line indicates high-fidelity execution and atomic settlement of digital asset derivatives, ensuring best execution and capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/principals-rfq-protocol-high-fidelity-execution-digital-asset-derivatives-market-microstructure-price-discovery-alpha-generation.jpg)

## Adverse Selection

Meaning ▴ Adverse selection describes a market condition characterized by information asymmetry, where one participant possesses superior or private knowledge compared to others, leading to transactional outcomes that disproportionately favor the informed party. </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">
![Sleek, off-white cylindrical module with a dark blue recessed oval interface. This represents a Principal's Prime RFQ gateway for institutional digital asset derivatives, facilitating private quotation protocol for block trade execution, ensuring high-fidelity price discovery and capital efficiency through low-latency liquidity aggregation](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-rfq-portal-optimal-institutional-digital-asset-execution.jpg)

## Market Impact

Meaning ▴ Market Impact refers to the observed change in an asset's price resulting from the execution of a trading order, primarily influenced by the order's size relative to available liquidity and prevailing market conditions. </a><a href="https://prime.greeks.live/question/how-can-a-firm-prove-its-algorithmic-dealer-selection-is-fair/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Abstract visualization of institutional RFQ protocol for digital asset derivatives. Translucent layers symbolize dark liquidity pools within complex market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-engine-6.jpg)

## Dealer Selection

A firm proves algorithmic fairness through a documented, data-driven system of regular and rigorous execution quality reviews. </a><a href="https://prime.greeks.live/area/inventory-risk-premium/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A stylized abstract radial design depicts a central RFQ engine processing diverse digital asset derivatives flows. Distinct halves illustrate nuanced market microstructure, optimizing multi-leg spreads and high-fidelity execution, visualizing a Principal's Prime RFQ managing aggregated inquiry and latent liquidity](https://options.greeks.live/wp-content/uploads/2025/07/principal-rfq-execution-engine-optimizing-digital-asset-derivatives-market-microstructure-for-institutional-liquidity-aggregation.jpg)

## Inventory Risk Premium

Meaning ▴ The Inventory Risk Premium represents the additional compensation required by a market maker or liquidity provider for assuming the price risk associated with holding an open inventory of assets or derivatives. </a><a href="https://prime.greeks.live/area/execution-management-system/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A segmented circular diagram, split diagonally. Its core, with blue rings, represents the Prime RFQ Intelligence Layer driving High-Fidelity Execution for Institutional Digital Asset Derivatives](https://options.greeks.live/wp-content/uploads/2025/08/high-speed-prime-os-rfq-digital-asset-derivatives-trade-execution.jpg)

## Execution Management System

Meaning ▴ An Execution Management System (EMS) is a specialized software application engineered to facilitate and optimize the electronic execution of financial trades across diverse venues and asset classes. </a><a href="https://prime.greeks.live/area/ssti-threshold/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A vibrant blue digital asset, encircled by a sleek metallic ring representing an RFQ protocol, emerges from a reflective Prime RFQ surface. This visualizes sophisticated market microstructure and high-fidelity execution within an institutional liquidity pool, ensuring optimal price discovery and capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-high-fidelity-execution-framework.jpg)

## Ssti Threshold

Meaning ▴ The SSTI Threshold represents a precisely defined, dynamic control parameter within automated trading systems governing institutional digital asset derivatives. </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">
![Central intersecting blue light beams represent high-fidelity execution and atomic settlement. Mechanical elements signify robust market microstructure and order book dynamics](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-engine-visualizing-market-microstructure-for-high-fidelity-alpha-generation-via-prime-os.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/risk-premium/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Two semi-transparent, curved elements, one blueish, one greenish, are centrally connected, symbolizing dynamic institutional RFQ protocols. This configuration suggests aggregated liquidity pools and multi-leg spread constructions](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-price-discovery-engine.jpg)

## Risk Premium

Meaning ▴ The Risk Premium represents the excess return an investor demands or expects for assuming a specific level of financial risk, above the return offered by a risk-free asset over the same period. </a><a href="https://prime.greeks.live/area/post-trade-transparency/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A translucent teal layer overlays a textured, lighter gray curved surface, intersected by a dark, sleek diagonal bar. This visually represents the market microstructure for institutional digital asset derivatives, where RFQ protocols facilitate high-fidelity execution](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-derivatives-rfq-protocols-driving-optimal-execution.jpg)

## Post-Trade Transparency

Meaning ▴ Post-Trade Transparency defines the public disclosure of executed transaction details, encompassing price, volume, and timestamp, after a trade has been completed. </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">
![Abstract system interface with translucent, layered funnels channels RFQ inquiries for liquidity aggregation. A precise metallic rod signifies high-fidelity execution and price discovery within market microstructure, representing Prime RFQ for digital asset derivatives with atomic settlement](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-derivatives-rfq-protocol-optimized-high-fidelity-execution-interface.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/rfq-pricing/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Stacked concentric layers, bisected by a precise diagonal line. This abstract depicts the intricate market microstructure of institutional digital asset derivatives, embodying a Principal's operational framework](https://options.greeks.live/wp-content/uploads/2025/07/multi-layered-digital-asset-derivatives-rfq-protocol-architecture.jpg)

## Rfq Pricing

Meaning ▴ RFQ Pricing, or Request For Quote Pricing, refers to the process by which an institutional participant solicits executable price quotations from multiple liquidity providers for a specific financial instrument and quantity. </a><a href="https://prime.greeks.live/area/execution-management/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, multi-component device in dark blue and beige, symbolizing an advanced institutional digital asset derivatives platform. The central sphere denotes a robust liquidity pool for aggregated inquiry](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-execution-platform-system.jpg)

## Execution Management

Meaning ▴ Execution Management defines the systematic, algorithmic orchestration of an order's lifecycle from initial submission through final fill across disparate liquidity venues within digital asset markets. </a><a href="https://prime.greeks.live/area/fix-protocol/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A precise, metallic central mechanism with radiating blades on a dark background represents an Institutional Grade Crypto Derivatives OS. It signifies high-fidelity execution for multi-leg spreads via RFQ protocols, optimizing market microstructure for price discovery and capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-system-microstructure-hub.jpg)

## Fix Protocol

Meaning ▴ The Financial Information eXchange (FIX) Protocol is a global messaging standard developed specifically for the electronic communication of securities transactions and related data. </a>

**Tags:** [Market Impact](https://options.greeks.live/area/market-impact/), [Pre-Trade Transparency](https://options.greeks.live/area/pre-trade-transparency/), [Risk Premium](https://options.greeks.live/area/risk-premium/), [Risk Transfer](https://options.greeks.live/area/risk-transfer/), [MiFID II](https://options.greeks.live/area/mifid-ii/), [LIS Threshold](https://options.greeks.live/area/lis-threshold/)	

## Discover More

- 
### [Can Increased RFQ Utilization Lead to a More Fragmented or Less Transparent Market Structure Overall?](https://options.greeks.live/question/can-increased-rfq-utilization-lead-to-a-more-fragmented-or-less-transparent-market-structure-overall/)
![The abstract composition features a central, multi-layered blue structure representing a sophisticated institutional digital asset derivatives platform, flanked by two distinct liquidity pools. Intersecting blades symbolize high-fidelity execution pathways and algorithmic trading strategies, facilitating private quotation and block trade settlement within a market microstructure optimized for price discovery and capital efficiency.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-high-fidelity-execution-1.jpg)

Increased RFQ use re-architects markets by trading public pre-trade transparency for controlled, large-scale liquidity discovery.

- 
### [How Does the Large in Scale Waiver Impact RFQ Liquidity Provision?](https://options.greeks.live/question/how-does-the-large-in-scale-waiver-impact-rfq-liquidity-provision/)
![A precise stack of multi-layered circular components visually representing a sophisticated Principal Digital Asset RFQ framework. Each distinct layer signifies a critical component within market microstructure for high-fidelity execution of institutional digital asset derivatives, embodying liquidity aggregation across dark pools, enabling private quotation and atomic settlement.](https://options.greeks.live/wp-content/uploads/2025/07/principal-digital-asset-rfq-protocol-layers-for-high-fidelity-execution.jpg)

The Large In Scale waiver is a regulatory protocol enabling discreet, large-scale liquidity sourcing via RFQ to minimize market impact.

- 
### [How Do Regulatory Frameworks like MiFID II Impact the Curation of RFQ Environments and the Prevention of Adverse Selection?](https://options.greeks.live/question/how-do-regulatory-frameworks-like-mifid-ii-impact-the-curation-of-rfq-environments-and-the-prevention-of-adverse-selection/)
![A beige, triangular device with a dark, reflective display and dual front apertures. This specialized hardware facilitates institutional RFQ protocols for digital asset derivatives, enabling high-fidelity execution, market microstructure analysis, optimal price discovery, capital efficiency, block trades, and portfolio margin.](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-terminal-for-high-fidelity-execution-and-precise-market-microstructure-analysis.jpg)

MiFID II transforms RFQ from a private negotiation into a data-driven, auditable process to mitigate adverse selection through transparency.

- 
### [How Do Regulatory Frameworks like MiFID II Impact RFQ Protocol Usage for Different Asset Classes?](https://options.greeks.live/question/how-do-regulatory-frameworks-like-mifid-ii-impact-rfq-protocol-usage-for-different-asset-classes/)
![A blue speckled marble, symbolizing a precise block trade, rests centrally on a translucent bar, representing a robust RFQ protocol. This structured geometric arrangement illustrates complex market microstructure, enabling high-fidelity execution, optimal price discovery, and efficient liquidity aggregation within a principal's operational framework for institutional digital asset derivatives.](https://options.greeks.live/wp-content/uploads/2025/07/precision-institutional-rfq-execution-framework-optimizing-digital-asset-derivatives-liquidity-aggregation-across-complex-market-microstructure.jpg)

MiFID II transformed the RFQ protocol from a bilateral conversation into a structured, auditable electronic workflow for sourcing liquidity.

- 
### [How Do MiFID II Transparency Waivers Influence the Choice between RFQ and CLOB?](https://options.greeks.live/question/how-do-mifid-ii-transparency-waivers-influence-the-choice-between-rfq-and-clob/)
![Two distinct, interlocking institutional-grade system modules, one teal, one beige, symbolize integrated Crypto Derivatives OS components. The beige module features a price discovery lens, while the teal represents high-fidelity execution and atomic settlement, embodying capital efficiency within RFQ protocols for multi-leg spread strategies.](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-protocol-engine-modules.jpg)

MiFID II waivers enable discreet, large-scale liquidity access via RFQ, counterbalancing the CLOB's full transparency to minimize market impact.

- 
### [How Does the Liquidity of an Asset Affect RFQ Protocol Selection?](https://options.greeks.live/question/how-does-the-liquidity-of-an-asset-affect-rfq-protocol-selection/)
![A dark, sleek, disc-shaped object features a central glossy black sphere with concentric green rings. This precise interface symbolizes an Institutional Digital Asset Derivatives Prime RFQ, optimizing RFQ protocols for high-fidelity execution, atomic settlement, capital efficiency, and best execution within market microstructure.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-protocol-control-system.jpg)

Asset liquidity dictates RFQ protocol selection by defining the trade-off between price competition and information control.

- 
### [How Can a Request for Quote Protocol Be Used to Mitigate Information Leakage for Large Block Trades?](https://options.greeks.live/question/how-can-a-request-for-quote-protocol-be-used-to-mitigate-information-leakage-for-large-block-trades/)
![A precision-engineered interface for institutional digital asset derivatives. A circular system component, perhaps an Execution Management System EMS module, connects via a multi-faceted Request for Quote RFQ protocol bridge to a distinct teal capsule, symbolizing a bespoke block trade. This depicts high-fidelity execution, optimizing market microstructure within a Principal's operational framework for atomic settlement.](https://options.greeks.live/wp-content/uploads/2025/07/precision-engineered-interface-for-institutional-digital-asset-derivatives-request-for-quote-protocol-high-fidelity-execution-within-principal-operating-system.jpg)

An RFQ protocol mitigates leakage by replacing public broadcasts with discrete, secure solicitations to curated liquidity providers.

- 
### [How Does the Systematic Internaliser Regime Impact Bilateral Price Discovery for Non-Equity Instruments?](https://options.greeks.live/question/how-does-the-systematic-internaliser-regime-impact-bilateral-price-discovery-for-non-equity-instruments/)
![Two high-gloss, white cylindrical execution channels with dark, circular apertures and secure bolted flanges, representing robust institutional-grade infrastructure for digital asset derivatives. These conduits facilitate precise RFQ protocols, ensuring optimal liquidity aggregation and high-fidelity execution within a proprietary Prime RFQ environment.](https://options.greeks.live/wp-content/uploads/2025/08/institutional-grade-execution-channels-enabling-private-quotation-and-optimal-liquidity-aggregation-for-high-fidelity-digital-asset-derivatives-rfq-protocols-on-prime-os.jpg)

The Systematic Internaliser regime impacts bilateral price discovery by injecting mandatory, firm quoting obligations into private negotiations.

- 
### [What Are the Primary Regulatory Differences between Rfq and Clob under MiFID II?](https://options.greeks.live/question/what-are-the-primary-regulatory-differences-between-rfq-and-clob-under-mifid-ii/)
![Sleek metallic structures with glowing apertures symbolize institutional RFQ protocols. These represent high-fidelity execution and price discovery across aggregated liquidity pools. A dark aperture suggests a dark pool, crucial for discreet block trade and multi-leg spread negotiation.](https://options.greeks.live/wp-content/uploads/2025/07/precision-digital-asset-derivatives-trading-systems-optimizing-rfq-protocols-for-institutional-block-trade-execution.jpg)

MiFID II mandates CLOBs for transparent price discovery while architecting RFQs with waivers for discreet, large-scale risk transfer.

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---

**Original URL:** https://options.greeks.live/question/how-do-lis-and-ssti-thresholds-directly-impact-rfq-pricing-strategy/
