# How Do MiFID II and FINRA Best Execution Rules Differ for RFQs? ▴ Question

**Published:** 2025-08-06
**Categories:** Question

---

![A stylized spherical system, symbolizing an institutional digital asset derivative, rests on a robust Prime RFQ base. Its dark core represents a deep liquidity pool for algorithmic trading](https://options.greeks.live/wp-content/uploads/2025/08/institutional-grade-rfq-protocol-engine-facilitating-best-execution-and-liquidity-aggregation-for-digital-asset-derivatives.jpg)

![A complex metallic mechanism features a central circular component with intricate blue circuitry and a dark orb. This symbolizes the Prime RFQ intelligence layer, driving institutional RFQ protocols for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-core-rfq-engine-for-digital-asset-derivatives-best-trade-execution.jpg)

## Concept

Executing a [Request for Quote](https://prime.greeks.live/area/request-for-quote/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (RFQ) within the institutional domain necessitates a profound understanding of the jurisdictional frameworks governing [best execution](https://prime.greeks.live/area/best-execution/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). The operational chasm between the European Union’s MiFID II and the United States’ FINRA regulations presents a critical architectural challenge for any trading desk. The core divergence lies in their philosophical approach to ensuring client protection.

[MiFID II](https://prime.greeks.live/area/mifid-ii/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) is an explicit, data-centric, and prescriptive system demanding that firms take “[all sufficient steps](https://prime.greeks.live/area/all-sufficient-steps/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite)” to achieve the best possible result, a mandate that requires a demonstrable and auditable process of evidence collection. In contrast, FINRA’s Rule 5310 employs a principles-based standard, requiring “reasonable diligence” under prevailing market conditions, which allows for a more flexible, “facts and circumstances” analysis.

This distinction is far from academic; it fundamentally alters the design of a compliant [RFQ](https://prime.greeks.live/area/rfq/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) workflow. [Under MiFID](https://prime.greeks.live/question/what-are-the-operational-consequences-of-misreporting-under-mifid-ii-versus-a-reporting-failure-under-emir/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) II, the system architecture must be built around data capture and quantitative justification. The burden of proof is on the firm to show, with detailed records, that its choice of counterparties and execution methodology was the result of a comprehensive and systematic evaluation.

The regulation applies to a wide array of financial instruments, including over-the-counter (OTC) derivatives, and extends its reach to various trading models, including the RFQ protocol. This creates a system where the process itself is a primary component of compliance.

> The fundamental architectural difference is that MiFID II mandates an evidence-based, prescriptive process for best execution, while FINRA operates on a principles-based “reasonable diligence” standard.

Conversely, the FINRA framework emphasizes the outcome and the defensibility of the firm’s judgment. The rule obligates a broker to exercise reasonable care to obtain the most advantageous terms for the customer. While factors like price, volatility, and liquidity are central, the path to achieving best execution is less rigidly defined.

For an RFQ, this means a firm must have a robust internal policy and be able to articulate why its chosen course of action was reasonable given the specific character of the order and the market at that moment. The focus is on the firm’s ability to conduct a “regular and rigorous” review of its [execution quality](https://prime.greeks.live/area/execution-quality/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), rather than on proving that every conceivable alternative was exhausted for every single trade.

For a global institution, these divergent requirements mean that a single, monolithic compliance architecture is unworkable. The RFQ system must be bifurcated, capable of operating in a highly structured, evidence-gathering mode for European clients and a more flexible, judgment-documenting mode for U.S. clients. Understanding this foundational difference is the first principle in designing a trading infrastructure that is not only compliant but operationally effective across jurisdictions.

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

![A sleek, multi-layered platform with a reflective blue dome represents an institutional grade Prime RFQ for digital asset derivatives. The glowing interstice symbolizes atomic settlement and capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/optimized-rfq-protocol-for-institutional-digital-asset-derivatives-1.jpg)

## Strategy

Strategically navigating the best execution requirements for RFQs under MiFID II and FINRA demands two distinct operational postures. The chosen approach directly impacts technology stacks, counterparty selection protocols, and the very nature of a trader’s daily workflow. The development of a successful strategy hinges on recognizing that each regulation prioritizes different aspects of the execution process.

![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)

## MiFID II the Data-Driven Mandate

The strategic imperative under MiFID II is the construction of a defensible, evidence-based process. The regulation compels firms to move beyond simply achieving a good price; they must systematically prove it. An effective strategy involves several key pillars:

- 
**Comprehensive Venue Analysis** ▴ Firms must develop a system for identifying and evaluating a wide range of potential execution venues and counterparties for each asset class. MiFID II does not permit a firm to default to a single venue unless it can consistently demonstrate that this approach yields the best result. For RFQs, this means a strategy of soliciting quotes from a sufficient number of dealers to ensure competitive tension and to evidence a thorough market survey.

- 
**Factor Weighting and Documentation** ▴ A core strategic element is the creation of a detailed [order execution policy](https://prime.greeks.live/area/order-execution-policy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) that specifies the relative importance of various execution factors (e.g. price, costs, speed, likelihood of execution). This policy cannot be static. The strategy must incorporate a dynamic ability to justify the weighting of these factors based on the client’s objectives, the order’s characteristics, and prevailing market conditions.

- 
**Systematic Data Capture** ▴ The architecture must be designed for rigorous data logging. Every RFQ, every quote received (whether executed or not), and the ultimate rationale for the execution decision must be recorded. This data forms the basis for the mandatory annual [RTS 28](https://prime.greeks.live/area/rts-28/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) reports, which detail the top five execution venues used for each class of financial instrument.

![Illuminated conduits passing through a central, teal-hued processing unit abstractly depict an Institutional-Grade RFQ Protocol. This signifies High-Fidelity Execution of Digital Asset Derivatives, enabling Optimal Price Discovery and Aggregated Liquidity for Multi-Leg Spreads](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-high-fidelity-best-execution.jpg)

## FINRA the Reasonableness Doctrine

FINRA’s framework allows for a more qualitative, principles-based strategy. The focus is on the consistent application of a sound process, backed by periodic, high-level reviews. The strategic approach is less about micro-documentation of every trade and more about the macro-level integrity of the firm’s execution practices.

What Defines A Firm’s Diligence Under FINRA?

The core of a FINRA-compliant strategy is the “regular and rigorous” review. This involves a periodic, typically quarterly, assessment of execution quality. The strategy is to build a system that can:

- 
**Categorize and Analyze Order Flow** ▴ Firms must analyze execution quality on a security-by-security and type-of-order basis. An RFQ for a large, illiquid corporate bond would be assessed differently than a small, liquid equity trade.

- 
**Benchmark Against Competing Markets** ▴ A critical strategic activity is comparing the execution quality obtained through current routing arrangements against the quality available from competing markets. This requires a system for sampling and analyzing market data to ensure the firm’s counterparties remain competitive.

- 
**Justify Routing Decisions** ▴ If the review process uncovers that better execution might be available elsewhere, the firm must either modify its routing arrangements or document a compelling justification for not doing so. This could involve factors like counterparty reliability or unique liquidity access.

> MiFID II strategy centers on building an auditable, data-rich workflow for every transaction, whereas FINRA strategy focuses on a periodic, high-level review to ensure the firm’s overall process is sound.

![A transparent glass bar, representing high-fidelity execution and precise RFQ protocols, extends over a white sphere symbolizing a deep liquidity pool for institutional digital asset derivatives. A small glass bead signifies atomic settlement within the granular market microstructure, supported by robust Prime RFQ infrastructure ensuring optimal price discovery and minimal slippage](https://options.greeks.live/wp-content/uploads/2025/07/institutional-grade-digital-asset-derivatives-rfq-execution-prime-os-intelligence-layer-facilitating-optimal-price-discovery-and-best-execution.jpg)

## Comparative Strategic Frameworks

The following table illustrates the strategic differences in designing an RFQ workflow for each regulatory environment.

| Strategic Component | MiFID II Approach | FINRA Approach |
| --- | --- | --- |
| Core Principle | “All sufficient steps” to obtain the best result; process-oriented. | “Reasonable diligence” to ascertain the best market; outcome-oriented. |
| Counterparty Selection | Must solicit quotes from a demonstrably sufficient range of providers. | Must use counterparties that consistently perform well in “regular and rigorous” reviews. |
| Documentation Focus | Per-transaction evidence of why the execution was optimal based on predefined factors. | Periodic review documentation proving the firm’s overall process is effective and regularly assessed. |
| Technology Requirement | Systems for granular data capture, timestamping, and automated policy application. | Systems for aggregating execution data for quarterly review and benchmarking. |
| Client Reporting | Mandatory annual RTS 28 reports detailing top execution venues and quality obtained. | No equivalent mandated public report; disclosure is typically within customer agreements. |

![A precision mechanism with a central circular core and a linear element extending to a sharp tip, encased in translucent material. This symbolizes an institutional RFQ protocol's market microstructure, enabling high-fidelity execution and price discovery for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/precision-engineered-institutional-digital-asset-derivatives-rfq-execution-engine-microstructure-facilitating-optimal-price-discovery-and-best-execution.jpg)

![Intricate metallic mechanisms portray a proprietary matching engine or execution management system. Its robust structure enables algorithmic trading and high-fidelity execution for institutional digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-market-microstructure.jpg)

## Execution

The execution of a Request for Quote under MiFID II and FINRA best execution rules translates strategic principles into concrete operational protocols. The design of the trading desk’s workflow, from technology integration to the decision-making matrix of the trader, is dictated by these divergent regulatory philosophies. A failure at the execution level exposes the firm to significant regulatory and reputational risk.

![A precision-engineered teal metallic mechanism, featuring springs and rods, connects to a light U-shaped interface. This represents a core RFQ protocol component enabling automated price discovery and high-fidelity execution](https://options.greeks.live/wp-content/uploads/2025/07/rfq-execution-engine-component-for-institutional-digital-asset-derivatives.jpg)

## MiFID II the Operational Playbook

Executing an RFQ under MiFID II is a procedural exercise in precision and evidence generation. The workflow must be constructed as a linear, auditable sequence of events where every step is logged and justified.

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

## A Step-By-Step RFQ Protocol

- 
**Order Ingestion and Factor Assignment** ▴ Upon receiving a client order, the system must immediately classify it by instrument type and assign the relevant execution factors from the firm’s order [execution policy](https://prime.greeks.live/area/execution-policy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). For a large, illiquid corporate bond RFQ, “Likelihood of Execution” and “Size” might be weighted more heavily than “Price.”

- 
**Counterparty Selection and Solicitation** ▴ The system must present the trader with a list of approved counterparties. The trader must solicit quotes from a number of them sufficient to satisfy the “all [sufficient steps](https://prime.greeks.live/area/sufficient-steps/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite)” requirement. This process must be logged, showing which dealers were contacted and why. Selecting only three dealers for a highly liquid instrument might be challenged during an audit.

- 
**Quote Aggregation and Analysis** ▴ All responses must be captured electronically, timestamped, and displayed to the trader in a consolidated view. This includes quotes that are priced, rejected, or timed out.

- 
**Execution Justification** ▴ The trader’s decision point is a critical data entry event. If the best-priced quote is chosen, the justification is straightforward. If a lower-priced quote is selected, the trader must provide a clear, documented reason linked back to the pre-assigned execution factors (e.g. “Chose Dealer B despite being priced 2bps worse than Dealer A due to higher certainty of settlement and larger available size”).

- 
**Post-Trade Data Feed** ▴ Upon execution, the trade details must feed directly into two separate data streams ▴ the public trade reporting system (if applicable under MiFIR transparency rules) and the internal data lake used for generating RTS 27/28 reports.

![A sleek, bimodal digital asset derivatives execution interface, partially open, revealing a dark, secure internal structure. This symbolizes high-fidelity execution and strategic price discovery via institutional RFQ protocols](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-protocols-price-discovery.jpg)

## FINRA the “facts and Circumstances” Workflow

Execution under [FINRA Rule 5310](https://prime.greeks.live/area/finra-rule-5310/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) is less about a rigid, step-by-step procedure for every trade and more about empowering the trader to use their judgment within a well-defined and regularly monitored framework. The emphasis is on demonstrating diligence through a robust supervisory structure.

![A central blue sphere, representing a Liquidity Pool, balances on a white dome, the Prime RFQ. Perpendicular beige and teal arms, embodying RFQ protocols and Multi-Leg Spread strategies, extend to four peripheral blue elements](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-digital-asset-derivatives-rfq-protocol-execution-framework.jpg)

## How Does the FINRA Diligence Process Work in Practice?

The execution workflow focuses on providing the trader with the right tools and information, then reviewing the outcomes of their decisions periodically.

- 
**Pre-Trade Intelligence** ▴ The trader’s systems should provide data on the character of the market, including recent price volatility, available liquidity, and the historical performance of various counterparties for that specific security or similar ones.

- 
**Informed Judgment** ▴ The trader executes the RFQ based on their assessment of the market and the client’s needs. They are expected to check a reasonable number of markets or dealers, but there is no prescribed number. The key is being able to defend that choice as “reasonable” under the circumstances.

- 
**Exception-Based Documentation** ▴ While all trades are logged, detailed justification is typically required only for exceptions or when routing decisions deviate from established firm policies.

- 
**The Quarterly Review Cycle** ▴ The primary execution control is the “regular and rigorous” review. A supervisory committee will analyze aggregated execution data, comparing the firm’s performance for specific securities against benchmarks and competing market centers. This review is the cornerstone of FINRA compliance.

> MiFID II execution is a granular, real-time documentation exercise for every RFQ, while FINRA execution relies on trader judgment guided by a robust framework of periodic, high-level review.

![Close-up reveals robust metallic components of an institutional-grade execution management system. Precision-engineered surfaces and central pivot signify high-fidelity execution for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-grade-digital-asset-derivatives-rfq-execution-precision-optimizing-market-microstructure-for-best-execution-and-prime-os.jpg)

## RFQ Execution Data Comparison

The following table provides a hypothetical comparison of the data points that must be captured at the point of execution for a single corporate bond RFQ under each regime.

| Data Point | MiFID II Execution Log (Mandatory) | FINRA Execution Log (Typical) |
| --- | --- | --- |
| Client Order ID | C-12345 | C-12345 |
| Instrument | ABC Corp 4.25% 2030 | ABC Corp 4.25% 2030 |
| RFQ Counterparties | Dealer A, Dealer B, Dealer C, Dealer D, Dealer E | Dealer A, Dealer B, Dealer C |
| Quote A (Price/Size) | 101.50 / $5M | 101.50 / $5M |
| Quote B (Price/Size) | 101.48 / $2M | 101.48 / $2M |
| Quote C (Price/Size) | 101.51 / $5M | 101.51 / $5M |
| Executed Quote | Quote C (101.51) | Quote C (101.51) |
| Execution Justification | Mandatory Field ▴ “Best price received from the solicited counterparties.” | Optional Field ▴ Generally left blank unless there is an exception. |
| Link to Execution Policy | Policy v4.1; Factors ▴ Price (80%), Size (10%), Speed (10%) | N/A |
| RTS 28 Data Flag | Yes | N/A |

![A segmented rod traverses a multi-layered spherical structure, depicting a streamlined Institutional RFQ Protocol. This visual metaphor illustrates optimal Digital Asset Derivatives price discovery, high-fidelity execution, and robust liquidity pool integration, minimizing slippage and ensuring atomic settlement for multi-leg spreads within a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-flow-1.jpg)

## References

- Angel, James J. and Douglas McCabe. “Ethical Standards for Stockbrokers ▴ Fiduciary or Suitability?” CFA Institute Research Foundation, 2013.

- “MiFID II ▴ Best Execution.” Norton Rose Fulbright, June 2017.

- Financial Industry Regulatory Authority. “FINRA Rule 5310 ▴ Best Execution and Interpositioning.” FINRA Rulebook.

- European Securities and Markets Authority. “Questions and Answers on MiFID II and MiFIR investor protection topics.” ESMA35-43-349, 2021.

- Financial Conduct Authority. “Markets in Financial Instruments Directive II Implementation ▴ Policy Statement II.” PS17/14, July 2017.

- “Best Execution Requirements under FINRA and MiFID II Rules.” Sidley Austin LLP, 2018.

- “A Trader’s Guide to Best Execution in a Post-MiFID II World.” Greenwich Associates, 2019.

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

![Abstract intersecting beams with glowing channels precisely balance dark spheres. This symbolizes institutional RFQ protocols for digital asset derivatives, enabling high-fidelity execution, optimal price discovery, and capital efficiency within complex market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-derivatives-rfq-best-execution-prime-os-infrastructure.jpg)

## Reflection

The examination of MiFID II and FINRA’s best execution rules reveals a fundamental truth about modern financial regulation ▴ compliance architecture is market structure. The systems a firm builds to satisfy these obligations directly shape its access to liquidity, its operational efficiency, and its ultimate ability to serve its clients. The divergence between the two regimes forces a critical internal question for any global trading entity.

![A precision-engineered RFQ protocol engine, its central teal sphere signifies high-fidelity execution for digital asset derivatives. This module embodies a Principal's dedicated liquidity pool, facilitating robust price discovery and atomic settlement within optimized market microstructure, ensuring best execution](https://options.greeks.live/wp-content/uploads/2025/08/institutional-rfq-engine-for-digital-asset-derivatives-best-execution.jpg)

## Is Your Framework Built for Defense or Offense?

A compliance framework built merely to defend against regulatory inquiry looks very different from one designed to generate superior execution quality as its primary output. The former is a cost center, an exercise in data storage and retrieval. The latter is a source of competitive advantage. Does your RFQ protocol simply log quotes to create an audit trail, or does it actively analyze counterparty performance, response times, and fill rates to dynamically refine your routing logic?

The regulations provide the minimum standard, but the space above that minimum is where alpha is generated. The ultimate reflection is to view these rules not as constraints, but as a blueprint for building a more intelligent, responsive, and effective execution system.

![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)

## Glossary

<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 sleek, institutional-grade Prime RFQ component features intersecting transparent blades with a glowing core. This visualizes a precise RFQ execution engine, enabling high-fidelity execution and dynamic price discovery for digital asset derivatives, optimizing market microstructure for capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-digital-asset-derivatives-rfq-engine-for-best-execution-microstructure.jpg)

## Request for Quote

Meaning ▴ A Request for Quote (RFQ), in the context of institutional crypto trading, is a formal process where a prospective buyer or seller of digital assets solicits price quotes from multiple liquidity providers or market makers simultaneously. </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">
![Sleek, intersecting planes, one teal, converge at a reflective central module. This visualizes an institutional digital asset derivatives Prime RFQ, enabling RFQ price discovery across liquidity pools](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-digital-asset-derivatives-rfq-engine-optimizing-institutional-liquidity-aggregation-and-best-execution.jpg)

## Best Execution

Meaning ▴ Best Execution, in the context of cryptocurrency trading, signifies the obligation for a trading firm or platform to take all reasonable steps to obtain the most favorable terms for its clients' orders, considering a holistic range of factors beyond merely the quoted price. </a><a href="https://prime.greeks.live/area/all-sufficient-steps/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, cream and dark blue institutional trading terminal with a dark interactive display. It embodies a proprietary Prime RFQ, facilitating secure RFQ protocols for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-terminal-for-best-execution.jpg)

## All Sufficient Steps

Meaning ▴ Within the highly regulated and technologically evolving landscape of crypto institutional options trading and RFQ systems, "All Sufficient Steps" denotes the comprehensive, demonstrable actions undertaken by a market participant or platform to fulfill regulatory obligations, contractual agreements, or best execution mandates. </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">
![Two reflective, disc-like structures, one tilted, one flat, symbolize the Market Microstructure of Digital Asset Derivatives. This metaphor encapsulates RFQ Protocols and High-Fidelity Execution within a Liquidity Pool for Price Discovery, vital for a Principal's Operational Framework ensuring Atomic Settlement](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-high-fidelity-execution-liquidity-aggregation-optimizing-market-microstructure-principal-trading-best-execution-atomic-settlement.jpg)

## Mifid Ii

Meaning ▴ MiFID II (Markets in Financial Instruments Directive II) is a comprehensive regulatory framework implemented by the European Union to enhance the efficiency, transparency, and integrity of financial markets. </a><a href="https://prime.greeks.live/question/what-are-the-operational-consequences-of-misreporting-under-mifid-ii-versus-a-reporting-failure-under-emir/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A precision-engineered metallic cross-structure, embodying an RFQ engine's market microstructure, showcases diverse elements. One granular arm signifies aggregated liquidity pools and latent liquidity](https://options.greeks.live/wp-content/uploads/2025/07/institutional-rfq-engine-microstructure-for-atomic-settlement.jpg)

## Under Mifid

A MiFID II misreport corrupts market surveillance data; an EMIR failure hides systemic risk, creating distinct operational and reputational threats. </a><a href="https://prime.greeks.live/area/rfq/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sophisticated RFQ engine module, its spherical lens observing market microstructure and reflecting implied volatility. This Prime RFQ component ensures high-fidelity execution for institutional digital asset derivatives, enabling private quotation for block trades](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-for-best-execution-protocol.jpg)

## Rfq

Meaning ▴ A Request for Quote (RFQ), in the domain of institutional crypto trading, is a structured communication protocol enabling a prospective buyer or seller to solicit firm, executable price proposals for a specific quantity of a digital asset or derivative from one or more liquidity providers. </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 metallic rod, symbolizing a high-fidelity execution pipeline, traverses transparent elements representing atomic settlement nodes and real-time price discovery. It rests upon distinct institutional liquidity pools, reflecting optimized RFQ protocols for crypto derivatives trading across a complex volatility surface within Prime RFQ market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-trade-execution-pipeline-optimizing-rfq-protocols-for-best-execution-and-capital-efficiency.jpg)

## Execution Quality

Meaning ▴ Execution quality, within the framework of crypto investing and institutional options trading, refers to the overall effectiveness and favorability of how a trade order is filled. </a><a href="https://prime.greeks.live/area/order-execution-policy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A polished glass sphere reflecting diagonal beige, black, and cyan bands, rests on a metallic base against a dark background. This embodies RFQ-driven Price Discovery and High-Fidelity Execution for Digital Asset Derivatives, optimizing Market Microstructure and mitigating Counterparty Risk via Prime RFQ Private Quotation](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-best-execution-protocol.jpg)

## Order Execution Policy

Meaning ▴ An Order Execution Policy is a formal, comprehensive document that outlines the precise procedures, criteria, and execution venues an investment firm will utilize to execute client orders, with the paramount objective of achieving the best possible outcome for its clients. </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">
![Precision metallic pointers converge on a central blue mechanism. This symbolizes Market Microstructure of Institutional Grade Digital Asset Derivatives, depicting High-Fidelity Execution and Price Discovery via RFQ protocols, ensuring Capital Efficiency and Atomic Settlement for Multi-Leg Spreads](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-for-precision-execution.jpg)

## Rts 28

Meaning ▴ RTS 28, or Regulatory Technical Standard 28, is a specific regulation under the European Union's Markets in Financial Instruments Directive II (MiFID II) that mandates investment firms to publicly disclose detailed information regarding the quality of their order execution and the specific venues utilized for client trades. </a><a href="https://prime.greeks.live/area/execution-policy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A dark blue, precision-engineered blade-like instrument, representing a digital asset derivative or multi-leg spread, rests on a light foundational block, symbolizing a private quotation or block trade. This structure intersects robust teal market infrastructure rails, indicating RFQ protocol execution within a Prime RFQ for high-fidelity execution and liquidity aggregation in institutional trading](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-framework-multi-leg-spreads-best-execution-capital-efficiency.jpg)

## Execution Policy

Meaning ▴ An Execution Policy, within the sophisticated architecture of crypto institutional options trading and smart trading systems, defines the precise set of rules, parameters, and algorithms governing how trade orders are submitted, routed, and filled across various trading venues. </a><a href="https://prime.greeks.live/area/sufficient-steps/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Central mechanical pivot with a green linear element diagonally traversing, depicting a robust RFQ protocol engine for institutional digital asset derivatives. This signifies high-fidelity execution of aggregated inquiry and price discovery, ensuring capital efficiency within complex market microstructure and order book dynamics](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-engine-best-execution.jpg)

## Sufficient Steps

Meaning ▴ Sufficient Steps, within the domain of crypto investing and broader crypto technology, refers to the demonstrable and documented actions taken by an entity to adequately fulfill its legal, regulatory, or ethical obligations, particularly concerning compliance, risk management, or best execution mandates. </a><a href="https://prime.greeks.live/area/finra-rule-5310/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, metallic multi-lens device with glowing blue apertures symbolizes an advanced RFQ protocol engine. Its precision optics enable real-time market microstructure analysis and high-fidelity execution, facilitating automated price discovery and aggregated inquiry within a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-engine-intelligence-layer.jpg)

## Finra Rule 5310

Meaning ▴ FINRA Rule 5310, titled "Best Execution and Interpositioning," is a foundational regulatory principle in traditional financial markets, stipulating that broker-dealers must use reasonable diligence to ascertain the best market for a security and buy or sell in that market so that the resultant price to the customer is as favorable as possible under prevailing market conditions. </a>

**Tags:** [Sufficient Steps](https://options.greeks.live/area/sufficient-steps/), [All Sufficient Steps](https://options.greeks.live/area/all-sufficient-steps/), [Execution Policy](https://options.greeks.live/area/execution-policy/), [OTC Derivatives](https://options.greeks.live/area/otc-derivatives/), [MiFID II](https://options.greeks.live/area/mifid-ii/), [Request for Quote](https://options.greeks.live/area/request-for-quote/)	

## Discover More

- 
### [How Does MiFID II Define Best Execution for Fixed Income RFQs?](https://options.greeks.live/question/how-does-mifid-ii-define-best-execution-for-fixed-income-rfqs/)
![A precision mechanism with a central circular core and a linear element extending to a sharp tip, encased in translucent material. This symbolizes an institutional RFQ protocol's market microstructure, enabling high-fidelity execution and price discovery for digital asset derivatives. It represents the Prime RFQ intelligence layer ensuring atomic settlement and capital efficiency.](https://options.greeks.live/wp-content/uploads/2025/07/precision-engineered-institutional-digital-asset-derivatives-rfq-execution-engine-microstructure-facilitating-optimal-price-discovery-and-best-execution.jpg)

MiFID II defines best execution for fixed income RFQs as a defensible, data-driven process for achieving the optimal client outcome.

- 
### [What Are the Regulatory Requirements for Demonstrating Best Execution on RFQ Trades?](https://options.greeks.live/question/what-are-the-regulatory-requirements-for-demonstrating-best-execution-on-rfq-trades/)
![An abstract, multi-layered spherical system with a dark central disk and control button. This visualizes a Prime RFQ for institutional digital asset derivatives, embodying an RFQ engine optimizing market microstructure for high-fidelity execution and best execution, ensuring capital efficiency in block trades and atomic settlement.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-engine-prime-os-4.jpg)

Demonstrating best execution for RFQs requires an auditable, data-driven system proving a rigorous process for sourcing competitive liquidity.

- 
### [What Are the Key Differences between FINRA’s Best Execution Rule and the MiFID II Requirements?](https://options.greeks.live/question/what-are-the-key-differences-between-finras-best-execution-rule-and-the-mifid-ii-requirements/)
![A sophisticated system's core component, representing an Execution Management System, drives a precise, luminous RFQ protocol beam. This beam navigates between balanced spheres symbolizing counterparties and intricate market microstructure, facilitating institutional digital asset derivatives trading, optimizing price discovery, and ensuring high-fidelity execution within a prime brokerage framework.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-engine-10.jpg)

FINRA's "reasonable diligence" versus MiFID II's "all sufficient steps" and data-centric transparency.

- 
### [How Does the Best Execution Obligation Apply to Over-The-Counter (OTC) Derivatives Trading?](https://options.greeks.live/question/how-does-the-best-execution-obligation-apply-to-over-the-counter-otc-derivatives-trading/)
![A sleek, dark sphere, symbolizing the Intelligence Layer of a Prime RFQ, rests on a sophisticated institutional grade platform. Its surface displays volatility surface data, hinting at quantitative analysis for digital asset derivatives. Precision mechanisms suggest RFQ protocol engagement enabling high-fidelity execution.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-platform-intelligence-layer-optimizing-high-fidelity-execution.jpg)

Best execution in OTC derivatives requires a systematic, evidence-based process to ensure client transactions achieve the most favorable terms available.

- 
### [What Are the Regulatory Implications of Systematically Documenting Best Execution through This Method?](https://options.greeks.live/question/what-are-the-regulatory-implications-of-systematically-documenting-best-execution-through-this-method/)
![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)

Systematic documentation transforms regulatory duty into a strategic asset by creating an auditable, data-driven proof of execution quality.

- 
### [How Do MiFID II and FINRA Rules Differ in Their Approach to RFQ Best Execution?](https://options.greeks.live/question/how-do-mifid-ii-and-finra-rules-differ-in-their-approach-to-rfq-best-execution/)
![An institutional grade system component, featuring a reflective intelligence layer lens, symbolizes high-fidelity execution and market microstructure insight. This enables price discovery for digital asset derivatives. Its calibrated design supports algorithmic trading and pre-trade analytics, optimizing RFQ protocols for block trade liquidity.](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-precision-rfq-execution-system-interface.jpg)

MiFID II demands a system of continuous, multi-factor proof, while FINRA requires a framework of periodic, price-focused diligence.

- 
### [What Are the Key Differences in Best Execution Requirements between MiFID II and FINRA?](https://options.greeks.live/question/what-are-the-key-differences-in-best-execution-requirements-between-mifid-ii-and-finra/)
![A dual-toned cylindrical component features a central transparent aperture revealing intricate metallic wiring. This signifies a core RFQ processing unit for Digital Asset Derivatives, enabling rapid Price Discovery and High-Fidelity Execution. It embodies an advanced Prime RFQ component, optimizing Liquidity Pool access and Market Microstructure via Algorithmic Trading.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-core-best-execution-prime-os.jpg)

MiFID II demands demonstrable "all sufficient steps" via public data, while FINRA requires "reasonable diligence" proven through internal reviews.

- 
### [How Has MiFID II Specifically Altered Best Execution Requirements for Fixed Income RFQs?](https://options.greeks.live/question/how-has-mifid-ii-specifically-altered-best-execution-requirements-for-fixed-income-rfqs/)
![An intricate, transparent cylindrical system depicts a sophisticated RFQ protocol for digital asset derivatives. Internal glowing elements signify high-fidelity execution and algorithmic trading. A central angular structure represents atomic settlement and multi-leg spread capabilities, ensuring best execution within institutional trading.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-protocol-architecture.jpg)

MiFID II transformed fixed income RFQ best execution from a qualitative duty into a quantitatively provable, data-driven process.

- 
### [What Are the Key Differences between MiFID I and MiFID II Best Execution?](https://options.greeks.live/question/what-are-the-key-differences-between-mifid-i-and-mifid-ii-best-execution/)
![A sleek, metallic instrument with a central pivot and pointed arm, featuring a reflective surface and a teal band, embodies an institutional RFQ protocol. This represents high-fidelity execution for digital asset derivatives, enabling private quotation and optimal price discovery for multi-leg spread strategies within a dark pool, powered by a Prime RFQ.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-rfq-execution-for-optimal-liquidity-discovery.jpg)

MiFID II transformed best execution from a principle of conduct into a data-driven mandate requiring demonstrable proof of optimal outcomes.

---

## 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 MiFID II and FINRA Best Execution Rules Differ for RFQs?",
            "item": "https://options.greeks.live/question/how-do-mifid-ii-and-finra-best-execution-rules-differ-for-rfqs/"
        }
    ]
}
```

```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-mifid-ii-and-finra-best-execution-rules-differ-for-rfqs/"
    },
    "headline": "How Do MiFID II and FINRA Best Execution Rules Differ for RFQs? \u25b4 Question",
    "description": "MiFID II demands a prescriptive, data-proven process for RFQs, while FINRA requires a principles-based, periodically reviewed diligence. \u25b4 Question",
    "url": "https://options.greeks.live/question/how-do-mifid-ii-and-finra-best-execution-rules-differ-for-rfqs/",
    "datePublished": "2025-08-06T14:25:34+00:00",
    "dateModified": "2025-10-27T06:03:22+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/high-fidelity-rfq-execution-for-digital-asset-derivatives.jpg",
        "caption": "This abstract design depicts a sophisticated institutional trading framework, showcasing a dynamic RFQ protocol at its core. Translucent elements represent secure data pipelines facilitating atomic settlement for digital asset derivatives, while the metallic blade signifies high-frequency trading strategies achieving best execution and alpha generation. It embodies the Prime RFQ infrastructure, optimizing market microstructure for portfolio margin and minimizing slippage in Bitcoin options and Ethereum futures across liquidity pools."
    },
    "keywords": [
        "All Sufficient Steps",
        "Best Execution",
        "Execution Policy",
        "Execution Quality",
        "FINRA Rule 5310",
        "Institutional Trading",
        "Liquidity Sourcing",
        "Market Microstructure",
        "MiFID II",
        "Order Execution Policy",
        "OTC Derivatives",
        "Regular and Rigorous Review",
        "Regulatory Compliance",
        "Request for Quote",
        "RFQ",
        "RTS 28",
        "Sufficient Steps",
        "Trade Documentation"
    ]
}
```

```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"
    }
}
```

```json
{
    "@context": "https://schema.org",
    "@type": "FAQPage",
    "mainEntity": [
        {
            "@type": "Question",
            "name": "How Does The FINRA Diligence Process Work In Practice?",
            "acceptedAnswer": {
                "@type": "Answer",
                "text": "The execution workflow focuses on providing the trader with the right tools and information, then reviewing the outcomes of their decisions periodically."
            }
        },
        {
            "@type": "Question",
            "name": "Is Your Framework Built For Defense Or Offense?",
            "acceptedAnswer": {
                "@type": "Answer",
                "text": "A compliance framework built merely to defend against regulatory inquiry looks very different from one designed to generate superior execution quality as its primary output. The former is a cost center, an exercise in data storage and retrieval. The latter is a source of competitive advantage. Does your RFQ protocol simply log quotes to create an audit trail, or does it actively analyze counterparty performance, response times, and fill rates to dynamically refine your routing logic? The regulations provide the minimum standard, but the space above that minimum is where alpha is generated. The ultimate reflection is to view these rules not as constraints, but as a blueprint for building a more intelligent, responsive, and effective execution system."
            }
        }
    ]
}
```


---

**Original URL:** https://options.greeks.live/question/how-do-mifid-ii-and-finra-best-execution-rules-differ-for-rfqs/
