# How Do LIS and SSTI Waivers Differ in Their Application? ▴ Question

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

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## Concept

An institution’s ability to execute orders of significant size rests upon a precise understanding of the market’s regulatory architecture. Within the [MiFID II](https://prime.greeks.live/area/mifid-ii/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) framework, the concepts of Large in Scale (LIS) and Size Specific to the Instrument (SSTI) waivers represent foundational pillars of this architecture. They are calibrated mechanisms designed to manage the inherent tension between the mandate for market transparency and the operational reality of executing large transactions without incurring prohibitive [market impact](https://prime.greeks.live/area/market-impact/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite).

Viewing these waivers as interchangeable is a fundamental misreading of their design and purpose. Their distinction is rooted in the type of risk they are engineered to mitigate and the nature of the liquidity they are designed to access.

The [LIS waiver](https://prime.greeks.live/area/lis-waiver/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) is a tool born from the logic of market scale. It recognizes that certain orders are of such a magnitude relative to the average transaction size that their pre-trade disclosure would trigger adverse price movements, effectively penalizing the very participants providing substantial liquidity. The application of a LIS waiver is a function of an order’s size against the backdrop of the entire market for that instrument class.

It is a broad, market-wide pressure release valve. Its purpose is to allow large blocks of capital to be deployed without causing systemic dislocations that would harm all participants.

> The LIS waiver serves to shield large orders from immediate market impact based on their size relative to normal trading volumes.

Conversely, the [SSTI waiver](https://prime.greeks.live/area/ssti-waiver/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) operates on a more granular, instrument-specific level. It is designed to address the risk faced by liquidity providers, particularly Systematic Internalisers (SIs), when they are obligated to provide quotes for instruments that may possess inconsistent or shallow liquidity. The [SSTI threshold](https://prime.greeks.live/area/ssti-threshold/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) is calibrated not against the general market, but against the specific trading characteristics and liquidity profile of the instrument itself.

This mechanism allows market makers to quote for sizes up to the SSTI threshold without being exposed to the undue risk of being unable to hedge their position in an illiquid instrument. It is a surgical tool, protecting the viability of market making in the vast universe of non-equity instruments where liquidity can be idiosyncratic and fragmented.

Understanding this core distinction is the first step in mastering execution strategy. The LIS waiver is about managing the impact of a single large order on the market. The SSTI waiver is about managing the risk to a market maker providing liquidity in a specific instrument.

One addresses the order, the other addresses the quoting obligation. Their applications, therefore, diverge based on the participant’s role, the instrument in question, and the strategic objective of the trade.

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## Strategy

The strategic deployment of LIS and SSTI waivers is a defining feature of sophisticated institutional trading. The choice between leveraging one over the other is dictated by the firm’s operational structure, the specific characteristics of the financial instrument, and the desired execution outcome. These waivers are components within a broader system of liquidity sourcing and risk management, and their effective use constitutes a significant competitive advantage.

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## Framework for Waiver Selection

An execution desk’s decision-making process must be built on a clear understanding of when each waiver is applicable and optimal. The LIS waiver is primarily a tool for trading venues ▴ Regulated Markets (RMs) and Multilateral Trading Facilities (MTFs) ▴ to facilitate large block trades without [pre-trade transparency](https://prime.greeks.live/area/pre-trade-transparency/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). An institutional client seeking to execute a large order would direct it to a venue that has received approval from its [National Competent Authority](https://prime.greeks.live/area/national-competent-authority/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (NCA) to operate a LIS waiver for that instrument class. The strategy here is one of passive, anonymous execution within a protected order book environment.

The SSTI waiver framework operates differently. It is central to the business model of a [Systematic Internaliser](https://prime.greeks.live/area/systematic-internaliser/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). An SI is an investment firm that deals on its own account by executing client orders outside a regulated trading venue. Under MiFID II, SIs are obligated to provide firm quotes.

The SSTI threshold defines the size at which this obligation can be waived to prevent undue risk. Therefore, an institution would strategically engage with an SI for a bilateral, off-book transaction, particularly in derivatives or bonds where liquidity is bespoke. The SSTI mechanism protects the SI, which in turn allows it to provide competitive quotes for sizes that are substantial but may not meet the higher [LIS threshold](https://prime.greeks.live/area/lis-threshold/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite).

> Choosing between LIS and SSTI is a strategic decision between anonymous venue-based execution and direct, principal-based liquidity from a Systematic Internaliser.

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## Comparative Strategic Application

The following table outlines the strategic considerations that differentiate the application of LIS and SSTI waivers from the perspective of an institutional [trading desk](https://prime.greeks.live/area/trading-desk/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite).

| Strategic Factor | LIS (Large in Scale) Waiver | SSTI (Size Specific to the Instrument) Waiver |
| --- | --- | --- |
| Execution Venue | Trading Venues (Regulated Markets, MTFs, OTFs). | Systematic Internalisers (SIs) executing client orders bilaterally. |
| Primary Purpose | To enable the execution of orders large relative to normal market size without pre-trade transparency, minimizing market impact. | To allow SIs to manage undue risk by waiving the pre-trade quote obligation for sizes specific to an instrument’s liquidity profile. |
| Basis of Calculation | Thresholds are based on a percentage of the average daily turnover or standard market size for a class of instruments. | Thresholds are calculated based on a percentile of the distribution of trade sizes for a specific instrument. |
| Typical Use Case | Executing a large block of a liquid equity or a standard bond order on a trading venue’s dark book. | Requesting a quote from an SI for a complex derivative or a corporate bond with idiosyncratic liquidity. |
| Interaction Model | Typically anonymous order book interaction. The user does not know the counterparty. | Bilateral, relationship-based interaction. The user is trading directly with the SI as principal. |

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## How Do Waivers Influence Liquidity Sourcing?

The existence of these two distinct waiver systems creates a bifurcated liquidity landscape. For highly liquid, standardized instruments, the LIS waiver on a central venue is often the most efficient path to execution. It aggregates liquidity and provides a single point of access. However, for the vast spectrum of non-equity instruments, the SSTI framework is what enables a network of SIs to function as a reliable source of liquidity.

Without the SSTI protection, many SIs would be unable to make markets in less liquid instruments, forcing participants onto lit venues where their orders would be exposed. This makes the SSTI waiver a critical enabler of liquidity in markets that are inherently fragmented and less standardized.

- **LIS Strategy** ▴ A portfolio manager needing to sell a €50 million position in a major European blue-chip stock would likely route the order to an MTF’s LIS-enabled dark pool. The primary goal is to minimize information leakage and price slippage by interacting with other large institutional orders.

- **SSTI Strategy** ▴ A corporate treasurer needing to hedge currency risk with a €25 million FX forward would approach several SIs for a quote. The trade size is significant for that specific currency pair but might not qualify for a LIS waiver. The SSTI threshold allows the SIs to provide a firm quote without being exposed to excessive risk, ensuring competitive pricing for the client.

![Central nexus with radiating arms symbolizes a Principal's sophisticated Execution Management System EMS. Segmented areas depict diverse liquidity pools and dark pools, enabling precise price discovery for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-prime-os-rfq-liquidity-orchestration.jpg)

![A dynamic visual representation of an institutional trading system, featuring a central liquidity aggregation engine emitting a controlled order flow through dedicated market infrastructure. This illustrates high-fidelity execution of digital asset derivatives, optimizing price discovery within a private quotation environment for block trades, ensuring capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/principal-os-driving-high-fidelity-execution-for-digital-asset-derivatives-through-optimized-rfq-protocols-and-smart-order-routing.jpg)

## Execution

The operational execution of trades under LIS and SSTI waivers requires a granular understanding of the regulatory mechanics, from threshold calculation to the practical steps a trading desk must take. The process is not merely theoretical; it is a sequence of data-driven decisions embedded in the firm’s order management system and execution protocols.

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## The Mechanics of Threshold Determination

The thresholds for both LIS and SSTI are not static figures. They are dynamically calculated by the European Securities and Markets Authority ([ESMA](https://prime.greeks.live/area/esma/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite)) and the relevant NCAs based on historical trading data. This data-driven approach ensures the waivers remain relevant to prevailing market conditions.

- **Data Collection** ▴ [Trading venues](https://prime.greeks.live/area/trading-venues/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) are required to submit detailed transaction data to the authorities. This data includes the size and frequency of trades for every financial instrument.

- **Liquidity Assessment** ▴ For non-equity instruments, a key step is the liquidity assessment. Instruments are classified as liquid or illiquid based on criteria such as daily trading activity and average transaction size. This classification directly impacts the waiver regime.

- **Threshold Calculation** ▴ 

<li>For **LIS**, the threshold is typically set based on percentiles of average daily turnover. For example, the LIS pre-trade waiver for a liquid equity might be set at a size that represents a significant portion of its average daily volume.

- For **SSTI**, the calculation is more instrument-specific. It is often determined by analyzing the distribution of individual trade sizes. For instance, the SSTI for a specific corporate bond might be set at the 60th percentile of all trades in that bond, meaning any trade larger than 60% of historical trades qualifies for the waiver.

</li>
- **Publication and Application** ▴ ESMA publishes these thresholds, which are then implemented by trading venues and SIs into their systems. An investment firm’s pre-trade compliance systems must ingest this data to correctly flag orders that are eligible for a waiver.

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## Operational Workflow for a Trading Desk

Consider a trading desk tasked with executing a large order in a corporate bond. The execution specialist must navigate the waiver landscape to achieve the best outcome. The following table illustrates a simplified decision matrix.

| Execution Parameter | Analysis and Action |
| --- | --- |
| Order Size | €15 million in XYZ Corp 2030 bond. |
| Instrument Liquidity | Check ESMA’s register. The bond is classified as liquid, but market depth is known to be inconsistent. |
| LIS Threshold Check | Consult the published LIS threshold for this bond class. Assume the pre-trade LIS threshold is €20 million. The order is below this size and does not qualify for a LIS waiver on a venue. |
| SSTI Threshold Check | Consult the published SSTI threshold for this specific bond. Assume the pre-trade SSTI is €10 million. The order is above this size. |
| Execution Pathway Decision | Executing the full €15 million on a lit market would likely cause significant price impact. Since the order is above the SSTI threshold, the desk can solicit quotes from multiple SIs. |
| Action | Initiate a Request for Quote (RFQ) process with a curated list of SIs known to provide liquidity in this bond. The SIs can provide a firm quote for the full €15 million without being obligated to display it pre-trade, as it exceeds the SSTI. |
| Post-Trade Consideration | The trade will be reported post-trade. However, because the size is above the SSTI threshold, the SI may be entitled to a deferral on the publication of the trade’s volume, further reducing information leakage. |

![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)

## What Is the Role of National Competent Authorities?

While ESMA coordinates the calculations, the NCAs hold the authority to grant the waivers to trading venues within their jurisdiction. A trading venue in France, for example, must apply to the Autorité des marchés financiers (AMF) to amend its rulebook to incorporate a LIS waiver. The AMF assesses the request to ensure it aligns with MiFIR’s objectives. This jurisdictional layer means that the availability of certain waivers can vary between trading venues based on their location and regulatory approval, adding another layer of complexity that institutional traders must navigate.

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## References

- European Securities and Markets Authority. “FAQs on MiFID II – Transitional Transparency Calculations.” 6 August 2018.

- International Capital Market Association. “MiFID II/R Draft Regulatory Technical Standards on transparency requirements in respect of bonds.” 2015.

- GFXD. “Reply form for the Consultation Paper on MiFID II/ MiFIR review report on the transparency regime for non-equity and the trading obligations for derivatives.” 10 March 2020.

- Autorité des marchés financiers. “Implementing MiFID 2 pre- and post-trade transparency requirements in France.” 2016.

- International Swaps and Derivatives Association. “ISDA Commentary on EC MIFIR proposal ▴ removal of the SSTI threshold.” 2021.

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## Reflection

The granular mechanics of LIS and SSTI waivers provide the building blocks of execution strategy. The true mastery, however, lies in viewing these mechanisms not as isolated rules, but as integrated components within your firm’s comprehensive operational framework. The critical question extends beyond simply identifying which waiver applies. It becomes a deeper inquiry into the architecture of your own liquidity sourcing and risk transfer protocols.

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## How Does Your System Prioritize Execution Certainty versus Price Improvement?

Consider how your firm’s order routing logic weighs the certainty of a bilateral trade with a Systematic Internaliser against the potential for price improvement in an anonymous LIS pool. Is this decision static, or does it adapt based on real-time market volatility and the known liquidity profile of the specific instrument? The answer reveals the sophistication of your internal systems and their alignment with your overarching strategic objectives. The knowledge of these waivers is the input; the resulting execution quality is the output of your proprietary system.

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## Glossary

<a href="https://prime.greeks.live/area/market-impact/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
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## Market Impact

Meaning ▴ Market Impact refers to the observed change in an asset's price resulting from the execution of a trading order, primarily influenced by the order's size relative to available liquidity and prevailing market conditions. </a><a href="https://prime.greeks.live/area/mifid-ii/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, futuristic object with a glowing line and intricate metallic core, symbolizing a Prime RFQ for institutional digital asset derivatives. It represents a sophisticated RFQ protocol engine enabling high-fidelity execution, liquidity aggregation, atomic settlement, and capital efficiency for multi-leg spreads](https://options.greeks.live/wp-content/uploads/2025/07/advanced-institutional-digital-asset-derivatives-rfq-protocol-execution-engine-for-optimal-liquidity-aggregation-and-atomic-settlement.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/lis-waiver/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
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## Lis Waiver

Meaning ▴ The LIS Waiver, or Large In-Size Waiver, constitutes a regulatory provision permitting the non-publication of pre-trade quotes for orders exceeding a specific volume threshold in certain financial markets. </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">
![Precision-engineered multi-layered architecture depicts institutional digital asset derivatives platforms, showcasing modularity for optimal liquidity aggregation and atomic settlement. This visualizes sophisticated RFQ protocols, enabling high-fidelity execution and robust pre-trade analytics](https://options.greeks.live/wp-content/uploads/2025/08/modular-digital-asset-derivative-prime-os-for-institutional-rfq-and-block-trade-execution.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/ssti-waiver/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
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## Ssti Waiver

Meaning ▴ The SSTI Waiver represents a regulatory provision allowing a Systematic Internaliser (SI) to execute specific digital asset derivative trades without immediate pre-trade transparency publication. </a><a href="https://prime.greeks.live/area/national-competent-authority/?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)

## National Competent Authority

Meaning ▴ A National Competent Authority, or NCA, designates a public entity vested with statutory powers to regulate and supervise specific financial sectors or activities within its national jurisdiction. </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">
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## 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/systematic-internaliser/?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)

## Systematic Internaliser

Meaning ▴ A Systematic Internaliser (SI) is a financial institution executing client orders against its own capital on an organized, frequent, systematic basis off-exchange. </a><a href="https://prime.greeks.live/area/lis-threshold/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Interconnected, sharp-edged geometric prisms on a dark surface reflect complex light. This embodies the intricate market microstructure of institutional digital asset derivatives, illustrating RFQ protocol aggregation for block trade execution, price discovery, and high-fidelity execution within a Principal's operational framework enabling optimal liquidity](https://options.greeks.live/wp-content/uploads/2025/07/precision-geometric-prisms-reflecting-institutional-digital-asset-derivatives-rfq-price-discovery-and-optimized-execution-market-microstructure.jpg)

## 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/trading-desk/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Sleek metallic and translucent teal forms intersect, representing institutional digital asset derivatives and high-fidelity execution. Concentric rings symbolize dynamic volatility surfaces and deep liquidity pools](https://options.greeks.live/wp-content/uploads/2025/07/optimized-institutional-digital-asset-derivatives-rfq-protocols-microstructure.jpg)

## Trading Desk

Meaning ▴ A Trading Desk represents a specialized operational system within an institutional financial entity, designed for the systematic execution, risk management, and strategic positioning of proprietary capital or client orders across various asset classes, with a particular focus on the complex and nascent digital asset derivatives landscape. </a><a href="https://prime.greeks.live/area/esma/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![An abstract institutional-grade RFQ protocol market microstructure visualization. Distinct execution streams intersect on a capital efficiency pivot, symbolizing block trade price discovery within a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-optimized-microstructure.jpg)

## Esma

Meaning ▴ ESMA, the European Securities and Markets Authority, functions as an independent European Union agency responsible for safeguarding the stability of the EU's financial system by ensuring the integrity, transparency, efficiency, and orderly functioning of securities markets, alongside enhancing investor protection. </a><a href="https://prime.greeks.live/area/trading-venues/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A central metallic RFQ engine anchors radiating segmented panels, symbolizing diverse liquidity pools and market segments. Varying shades denote distinct execution venues within the complex market microstructure, facilitating price discovery for institutional digital asset derivatives with minimal slippage and latency via high-fidelity execution](https://options.greeks.live/wp-content/uploads/2025/07/principals-digital-asset-derivatives-rfq-protocol-execution-nexus.jpg)

## Trading Venues

Meaning ▴ Trading Venues are defined as organized platforms or systems where financial instruments are bought and sold, facilitating price discovery and transaction execution through the interaction of bids and offers. </a>

**Tags:** [Systematic Internaliser](https://options.greeks.live/area/systematic-internaliser/), [Regulatory Technical Standards](https://options.greeks.live/area/regulatory-technical-standards/), [Block Trading](https://options.greeks.live/area/block-trading/), [Request for Quote](https://options.greeks.live/area/request-for-quote/), [Large-in-Scale](https://options.greeks.live/area/large-in-scale/), [SSTI Waiver](https://options.greeks.live/area/ssti-waiver/)	

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### [How Do Large-In-Scale Thresholds Impact Bond Market Execution Strategies?](https://options.greeks.live/question/how-do-large-in-scale-thresholds-impact-bond-market-execution-strategies/)
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Large-In-Scale thresholds are systemic switches that dictate whether a bond execution strategy leverages public transparency or private liquidity.

- 
### [How Does the LIS Waiver Interact with the Double Volume Caps in MiFID II?](https://options.greeks.live/question/how-does-the-lis-waiver-interact-with-the-double-volume-caps-in-mifid-ii/)
![Detailed metallic disc, a Prime RFQ core, displays etched market microstructure. Its central teal dome, an intelligence layer, facilitates price discovery. Protruding rods signify low-latency RFQ protocol data transmission, ensuring high-fidelity execution for digital asset derivatives.](https://options.greeks.live/wp-content/uploads/2025/07/principal-operating-system-intelligence-layer-powering-digital-asset-derivatives-rfq-protocols-for-optimal-execution.jpg)

The LIS waiver is a stable protocol for large trades, operating entirely outside the scope of the DVC's restrictions on smaller dark pools.

- 
### [How Do Venues Automate the Selection between LIS and SSTI Waivers?](https://options.greeks.live/question/how-do-venues-automate-the-selection-between-lis-and-ssti-waivers/)
![A sleek, multi-layered device, possibly a control knob, with cream, navy, and metallic accents, against a dark background. This represents a Prime RFQ interface for Institutional Digital Asset Derivatives. Its refined design signifies High-Fidelity Execution, Private Quotation capabilities, and Algorithmic Trading precision within Market Microstructure for Best Execution via RFQ protocols, minimizing Slippage.](https://options.greeks.live/wp-content/uploads/2025/07/precision-control-interface-for-institutional-digital-asset-derivatives-rfq-protocols-and-prime-os.jpg)

Venues automate waiver selection via a high-speed, data-driven logic gate that sequentially tests an order against LIS, then SSTI thresholds.

- 
### [How Do MiFID II Transparency Waivers Directly Impact RFQ Execution Strategy?](https://options.greeks.live/question/how-do-mifid-ii-transparency-waivers-directly-impact-rfq-execution-strategy/)
![A modular institutional trading interface displays a precision trackball and granular controls on a teal execution module. Parallel surfaces symbolize layered market microstructure within a Principal's operational framework, enabling high-fidelity execution for digital asset derivatives via RFQ protocols.](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-institutional-digital-asset-derivatives-rfq-protocol-controls.jpg)

MiFID II waivers enable discreet, large-scale RFQ execution, mitigating market impact by controlling information flow.

- 
### [How Does the Large in Scale Waiver Directly Impact Block Trading Efficiency in Europe?](https://options.greeks.live/question/how-does-the-large-in-scale-waiver-directly-impact-block-trading-efficiency-in-europe/)
![Sleek, metallic form with precise lines represents a robust Institutional Grade Prime RFQ for Digital Asset Derivatives. The prominent, reflective blue dome symbolizes an Intelligence Layer for Price Discovery and Market Microstructure visibility, enabling High-Fidelity Execution via RFQ protocols.](https://options.greeks.live/wp-content/uploads/2025/08/prime-os-rfq-protocol-high-fidelity-digital-asset-derivatives-engine.jpg)

The Large-in-Scale waiver directly enhances block trading efficiency by providing a regulated shield against information leakage.

- 
### [How Does MiFID II Specifically Regulate Anonymity in RFQ Systems?](https://options.greeks.live/question/how-does-mifid-ii-specifically-regulate-anonymity-in-rfq-systems/)
![Two spheres balance on a fragmented structure against split dark and light backgrounds. This models institutional digital asset derivatives RFQ protocols, depicting market microstructure, price discovery, and liquidity aggregation. It highlights high-fidelity execution and counterparty risk within a Prime RFQ.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-price-discovery-liquidity-aggregation.jpg)

MiFID II regulates RFQ anonymity via a waiver system, allowing pre-trade opacity for large trades balanced by mandatory post-trade reporting.

- 
### [How Do Systematic Internalisers Utilize LIS Thresholds Differently than Multilateral Trading Facilities?](https://options.greeks.live/question/how-do-systematic-internalisers-utilize-lis-thresholds-differently-than-multilateral-trading-facilities/)
![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)

Systematic Internalisers use LIS thresholds to manage principal risk, while Multilateral Trading Facilities use them to facilitate anonymous block trading.

- 
### [Can the Large in Scale Waiver Be Used Simultaneously with the Illiquid Instrument Waiver?](https://options.greeks.live/question/can-the-large-in-scale-waiver-be-used-simultaneously-with-the-illiquid-instrument-waiver/)
![A sophisticated mechanism features a segmented disc, indicating dynamic market microstructure and liquidity pool partitioning. This system visually represents an RFQ protocol's price discovery process, crucial for high-fidelity execution of institutional digital asset derivatives and managing counterparty risk within a Prime RFQ.](https://options.greeks.live/wp-content/uploads/2025/07/advanced-digital-asset-derivatives-rfq-liquidity-aggregation-system.jpg)

The LIS and Illiquid Instrument waivers operate on mutually exclusive grounds and are not used simultaneously on one trade.

- 
### [How Does the Large-In-Scale Waiver Impact the Effectiveness of Volume Caps?](https://options.greeks.live/question/how-does-the-large-in-scale-waiver-impact-the-effectiveness-of-volume-caps/)
![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)

The Large-In-Scale waiver provides a sanctioned off-book execution path, mitigating the full transparency-forcing impact of volume caps.

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---

**Original URL:** https://options.greeks.live/question/how-do-lis-and-ssti-waivers-differ-in-their-application/
