# How Do Regulatory Frameworks like MiFID II Impact the Strategic Use of RFQ Protocols? ▴ Question

**Published:** 2025-07-31
**Categories:** Question

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![A central glowing core within metallic structures symbolizes an Institutional Grade RFQ engine. This Intelligence Layer enables optimal Price Discovery and High-Fidelity Execution for Digital Asset Derivatives, streamlining Block Trade and Multi-Leg Spread Atomic Settlement](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-microstructure-core.jpg)

![The image features layered structural elements, representing diverse liquidity pools and market segments within a Principal's operational framework. A sharp, reflective plane intersects, symbolizing high-fidelity execution and price discovery via private quotation protocols for institutional digital asset derivatives, emphasizing atomic settlement nodes](https://options.greeks.live/wp-content/uploads/2025/07/systemic-interplay-for-institutional-digital-asset-derivatives-execution-via-advanced-rfq-protocols.jpg)

## Concept

The implementation of the Markets in Financial Instruments Directive II ([MiFID II](https://prime.greeks.live/area/mifid-ii/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite)) represents a fundamental re-architecting of the European financial markets’ operating system. For any institutional participant, viewing this framework as a mere compliance overlay is a critical strategic error. It is an active intervention designed to rewrite the protocols governing transparency, [liquidity discovery](https://prime.greeks.live/area/liquidity-discovery/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), and execution accountability. At the core of this systemic overhaul lies a direct challenge to the foundational principles of the Request for Quote (RFQ) protocol.

The traditional RFQ, a bilateral and often opaque conversation, thrived in a market structure that tolerated information asymmetry. MiFID II systematically dismantles that environment.

The directive imposes a data-driven logic onto every stage of the trading lifecycle. This logic is built upon three pillars that directly impact the strategic use of quote solicitation protocols ▴ mandated [pre-trade transparency](https://prime.greeks.live/area/pre-trade-transparency/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), a granular [post-trade reporting](https://prime.greeks.live/area/post-trade-reporting/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) regime, and a legally binding redefinition of best execution. The framework forces every RFQ ▴ whether it results in a trade or is merely a test of the waters ▴ to be treated as a recordable, auditable market event.

This transforms the RFQ from a private inquiry into a public data point, fundamentally altering its risk-reward calculus for both the initiator and the responding counterparty. Understanding this transition is the first step toward building a new operational model for sourcing liquidity in the MiFID II era.

> MiFID II re-architects the market’s data layer, forcing traditionally opaque protocols like RFQ to operate within a new system of mandated transparency and accountability.

![Brushed metallic and colored modular components represent an institutional-grade Prime RFQ facilitating RFQ protocols for digital asset derivatives. The precise engineering signifies high-fidelity execution, atomic settlement, and capital efficiency within a sophisticated market microstructure for multi-leg spread trading](https://options.greeks.live/wp-content/uploads/2025/08/institutional-grade-digital-asset-derivatives-rfq-protocol-high-fidelity-execution-system.jpg)

## What Is the Core Conflict between MiFID II and Traditional RFQ?

The primary conflict arises from the collision of two opposing philosophies. The traditional RFQ is a tool for discreet price discovery, designed to minimize market impact and information leakage when executing large or illiquid orders. Its value is derived from its contained nature. MiFID II, conversely, operates on a principle of universal transparency.

It seeks to bring as much trading activity as possible into a standardized, observable, and data-rich environment. The directive’s rules on pre-trade transparency for Systematic Internalisers (SIs) and the creation of Organised Trading Facilities (OTFs) are direct mechanisms to formalize and regulate the RFQ process.

This creates an inherent tension. A buy-side desk initiating an RFQ must now consider how that request will be recorded, how it will factor into their [best execution](https://prime.greeks.live/area/best-execution/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) reporting, and whether the act of requesting a quote itself might create unintended market signals. For the sell-side, particularly firms designated as SIs, the obligation to provide public quotes under certain conditions removes the discretion that was once central to the RFQ response process. The protocol, therefore, is forced to evolve from a simple bilateral tool into a component within a complex, regulated ecosystem where data trails and auditability are paramount.

![Angular dark planes frame luminous turquoise pathways converging centrally. This visualizes institutional digital asset derivatives market microstructure, highlighting RFQ protocols for private quotation and high-fidelity execution](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-rfq-protocols-for-institutional-digital-assets.jpg)

## Redefining Best Execution from Principle to Proof

Prior to MiFID II, the concept of best execution was often a qualitative assessment, a matter of policy and process. Firms were required to take “all reasonable steps” to achieve the best result for a client. MiFID II replaces this with a more stringent and quantitative mandate to take “all sufficient steps.” This semantic shift is operationally significant.

It demands a demonstrable, evidence-based approach to [execution quality](https://prime.greeks.live/area/execution-quality/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). Firms are no longer just expected to have a good policy; they are required to prove its effectiveness with data.

This has profound implications for RFQ usage. Every decision to use an RFQ, especially for an instrument that could potentially trade on a more transparent venue, must be justified. The [execution factors](https://prime.greeks.live/question/what-are-the-primary-risk-factors-for-a-market-maker-when-quoting-a-large-derivatives-trade/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) ▴ price, costs, speed, and likelihood of execution ▴ must be weighed and documented. The choice of counterparties for the RFQ is no longer a matter of relationship alone; it must be supported by data on their historical performance.

The directive effectively transforms the trading desk into a data analysis unit, where the output of every RFQ contributes to a vast evidence file ([RTS 28](https://prime.greeks.live/area/rts-28/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) reports) that must be made public annually. This file details the top five execution venues used for each instrument class, forcing unprecedented transparency upon the firm’s execution routing decisions and fundamentally altering the strategic calculus behind every quote request.

![A precision-engineered, multi-layered system visually representing institutional digital asset derivatives trading. Its interlocking components symbolize robust market microstructure, RFQ protocol integration, and high-fidelity execution](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-high-fidelity-execution-4.jpg)

![Polished, curved surfaces in teal, black, and beige delineate the intricate market microstructure of institutional digital asset derivatives. These distinct layers symbolize segregated liquidity pools, facilitating optimal RFQ protocol execution and high-fidelity execution, minimizing slippage for large block trades and enhancing capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/precision-rfq-protocol-execution-institutional-digital-asset-derivatives-flow.jpg)

## Strategy

The strategic adaptation to MiFID II’s impact on RFQ protocols requires a shift from tactical execution to systemic design. It is about building a robust operational framework that internalizes the directive’s logic of transparency and data-driven proof. This means viewing every RFQ not as an isolated trade but as an input into a larger system of execution quality management and regulatory reporting. The primary strategic challenge is to retain the benefits of the [RFQ protocol](https://prime.greeks.live/area/rfq-protocol/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) ▴ access to specific liquidity and reduced market impact for large orders ▴ while operating within a system that demands a high degree of auditable transparency.

![A precision mechanism, symbolizing an algorithmic trading engine, centrally mounted on a market microstructure surface. Lens-like features represent liquidity pools and an intelligence layer for pre-trade analytics, enabling high-fidelity execution of institutional grade digital asset derivatives via RFQ protocols within a Principal's operational framework](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-protocol-microstructure.jpg)

## Evolving the Best Execution Policy for RFQ

A firm’s [best execution policy](https://prime.greeks.live/area/best-execution-policy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) is the central strategic document governing its response to MiFID II. Under the new regime, this policy must evolve from a high-level statement of principles into a granular, evidence-based operational manual. For RFQ workflows, this requires a clear and defensible methodology for its use.

- 
**Instrument-Specific Justification** ▴ The policy must articulate the specific conditions under which an RFQ is the most appropriate execution method. This is most defensible for instruments that are genuinely illiquid, where price discovery is not continuous, or for orders that qualify as Large in Scale (LIS) under the regulatory thresholds. Using an RFQ for a liquid instrument that trades on a [central limit order book](https://prime.greeks.live/area/central-limit-order-book/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) requires a much higher burden of proof.

- 
**Data-Driven [Counterparty Selection](https://prime.greeks.live/area/counterparty-selection/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite)** ▴ The process for selecting counterparties to include in an RFQ must be systematized. This involves moving beyond relationship-based choices to a quantitative evaluation of liquidity providers. Firms must analyze historical data on quote response times, quote competitiveness (spread to a benchmark), and fill ratios. This data forms the basis of a “smart” RFQ routing logic that is both efficient and compliant.

- 
**Integration of Execution Factors** ▴ The policy must detail how the firm weighs the various best execution factors. While price and cost are primary, the policy must also account for speed and likelihood of execution. For an illiquid bond, the certainty of execution (likelihood) might outweigh a marginal price improvement. This weighting must be applied consistently and documented.

The following table illustrates the strategic shift in best [execution policy](https://prime.greeks.live/area/execution-policy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) design for RFQs, moving from the pre-MiFID II principles to the post-MiFID II data-centric model.

| Policy Component | Pre-MiFID II Strategic Approach | Post-MiFID II Strategic Mandate |
| --- | --- | --- |
| Justification for RFQ Use | Based on trader discretion and market convention for certain asset classes. | Systematic, policy-driven justification based on instrument liquidity characteristics and order size (LIS waivers). Must be auditable. |
| Counterparty Selection | Primarily relationship-based, with some consideration of perceived reliability. | Data-driven and dynamic. Based on quantitative analysis of counterparty performance (response times, pricing, fill rates). |
| Proof of Best Execution | Demonstration of a reasonable process and policy. Often qualitative. | Demonstration of “all sufficient steps” through quantitative data. Requires capture and analysis of all quotes received, not just the executed trade. |
| Reporting | Internal and client-specific upon request. | Mandatory annual public reporting (RTS 28) of top five execution venues/brokers per instrument class, creating reputational and competitive pressures. |

![An abstract composition of intersecting light planes and translucent optical elements illustrates the precision of institutional digital asset derivatives trading. It visualizes RFQ protocol dynamics, market microstructure, and the intelligence layer within a Principal OS for optimal capital efficiency, atomic settlement, and high-fidelity execution](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-high-fidelity-execution-framework.jpg)

## Navigating the New Venue Landscape OTFs and SIs

MiFID II formalizes the trading environment by creating new venue categories that directly impact RFQ workflows. The [Organised Trading Facility](https://prime.greeks.live/area/organised-trading-facility/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (OTF) was designed specifically to capture voice and RFQ-based trading that previously occurred in the opaque OTC space. An OTF allows for discretion in execution, but it brings the activity within a regulated framework with pre- and post-trade transparency requirements.

Simultaneously, the [Systematic Internaliser](https://prime.greeks.live/area/systematic-internaliser/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (SI) regime compels firms that deal on own account frequently and substantially to publish firm quotes for liquid instruments. This creates a new, highly visible source of liquidity.

> The strategic choice of venue for an RFQ is now a complex decision matrix involving liquidity type, transparency obligations, and the documentation of that choice.

The strategic decision-making process for where to send an RFQ becomes a multi-layered analysis:

- 
**Assess the Instrument’s Liquidity** ▴ Is the instrument subject to the SI quoting obligation? If so, the SI quotes provide a public benchmark against which any RFQ execution will be measured.

- 
**Determine the Order Size** ▴ Does the order qualify for the Large-in-Scale (LIS) waiver? If so, pre-trade transparency obligations are lifted, making a discreet RFQ on an OTF or via bilateral channels more attractive.

- 
**Compare Venue Models** ▴ A firm must strategically choose between sending an RFQ to a multi-dealer OTF, engaging in a [bilateral RFQ](https://prime.greeks.live/area/bilateral-rfq/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) with a known liquidity provider (who may be an SI), or placing an order on a more anonymous central limit order book. An OTF provides a competitive, auditable RFQ process. A bilateral RFQ may offer access to unique liquidity but requires more rigorous internal documentation to prove best execution was achieved.

This strategic recalibration forces firms to develop a sophisticated understanding of the regulatory characteristics of each execution pathway and to build systems that can route orders intelligently based on this logic, capturing the necessary data to justify the chosen path.

![A curved grey surface anchors a translucent blue disk, pierced by a sharp green financial instrument and two silver stylus elements. This visualizes a precise RFQ protocol for institutional digital asset derivatives, enabling liquidity aggregation, high-fidelity execution, price discovery, and algorithmic trading within market microstructure via a Principal's operational framework](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-high-fidelity-execution-via-rfq-protocols-optimizing-market-microstructure-and-price-discovery.jpg)

![A sharp, metallic instrument precisely engages a textured, grey object. This symbolizes High-Fidelity Execution within institutional RFQ protocols for Digital Asset Derivatives, visualizing precise Price Discovery, minimizing Slippage, and optimizing Capital Efficiency via Prime RFQ for Best Execution](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-rfq-protocols-precision-execution-prime-os-liquidity.jpg)

## Execution

The execution of an RFQ strategy in a MiFID II environment is a matter of high-fidelity data capture, technological integration, and procedural discipline. The abstract requirements of the regulation must be translated into concrete, repeatable workflows within the firm’s [Order Management System](https://prime.greeks.live/area/order-management-system/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (OMS) and Execution Management System (EMS). The ultimate goal is to create a seamless process where compliance is an embedded feature of the execution workflow, not a post-trade administrative burden.

![Precision instrument with multi-layered dial, symbolizing price discovery and volatility surface calibration. Its metallic arm signifies an algorithmic trading engine, enabling high-fidelity execution for RFQ block trades, minimizing slippage within an institutional Prime RFQ for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-trading-platform-calibrating-rfq-protocols-for-high-fidelity-execution-and-market-microstructure-optimization.jpg)

## The Operational Playbook for a Compliant RFQ Lifecycle

Executing a single RFQ [under MiFID](https://prime.greeks.live/question/how-does-an-rfq-audit-trail-support-best-execution-requirements-under-mifid-ii/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) II involves a multi-stage process where every step must be logged and justified. This playbook outlines the critical operational actions for a trading desk.

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

## Phase 1 Pre-Trade Justification and Counterparty Selection

- 
**System Check** ▴ The OMS/EMS must first verify the instrument’s characteristics. Is it classified as liquid? Is it subject to the derivatives trading obligation? This initial check determines the available execution pathways.

- 
**Venue Determination** ▴ Based on the instrument and order size, the system should present the trader with a list of compliant venues. For a LIS order, this may include bilateral RFQ and OTFs. For a liquid, non-LIS order, the system must flag that using an RFQ over the lit market requires explicit justification.

- 
**Automated Counterparty List Generation** ▴ The system should propose a list of counterparties for the RFQ based on the firm’s data-driven counterparty selection policy. This list should be generated from analytics on historical execution quality, not from a static, manually maintained list. The trader retains the discretion to modify this list but must log the reason for any deviation.

![Abstractly depicting an institutional digital asset derivatives trading system. Intersecting beams symbolize cross-asset strategies and high-fidelity execution pathways, integrating a central, translucent disc representing deep liquidity aggregation](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-ecosystem-unifying-rfq-protocols-for-high-fidelity-execution-and-deep-liquidity-aggregation-across-multi-leg-spreads.jpg)

## Phase 2 Trade Execution and Data Capture

- 
**Timestamping** ▴ The moment the RFQ is sent, the system must log a precise, synchronized timestamp. This is the starting point for measuring quote response times.

- 
**Quote Logging** ▴ As each quote is received, it must be captured in its entirety ▴ the price, the quoted size, the timestamp of receipt, and the identity of the quoting counterparty. This applies to all quotes, including those that are rejected or expire.

- 
**Execution Rationale** ▴ When a quote is selected for execution, the trader must be prompted to confirm the primary reason for the choice, aligning with the best execution factors (e.g. “Best Price,” “Size Availability,” “Certainty of Execution”). This information is critical for the post-trade analysis and reporting. The execution request and the [final execution](https://prime.greeks.live/question/how-does-information-leakage-in-options-rfqs-impact-the-final-execution-price/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) confirmation must also be timestamped.

![Precision-engineered institutional-grade Prime RFQ modules connect via intricate hardware, embodying robust RFQ protocols for digital asset derivatives. This underlying market microstructure enables high-fidelity execution and atomic settlement, optimizing capital efficiency](https://options.greeks.live/wp-content/uploads/2025/08/precision-engineered-prime-os-modules-enabling-institutional-digital-asset-derivatives-rfq-protocols-for-best-execution.jpg)

## Phase 3 Post-Trade Reporting and Analysis

- 
**TCA Integration** ▴ The complete RFQ data record (all requests, quotes, and the final execution) must be fed into the firm’s [Transaction Cost Analysis](https://prime.greeks.live/area/transaction-cost-analysis/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (TCA) system. The TCA process compares the execution against relevant benchmarks (e.g. arrival price, SI quotes) and analyzes the performance of the chosen counterparties.

- 
**RTS 28 Data Aggregation** ▴ The execution record must be tagged with the specific data fields required for the firm’s annual RTS 28 report. This ensures that the data is correctly aggregated at the end of the reporting period.

- 
**Compliance Archive** ▴ The full, immutable record of the RFQ lifecycle must be stored in a searchable archive. This archive is the primary evidence file used to respond to inquiries from regulators or clients about a specific trade.

![A transparent glass sphere rests precisely on a metallic rod, connecting a grey structural element and a dark teal engineered module with a clear lens. This symbolizes atomic settlement of digital asset derivatives via private quotation within a Prime RFQ, showcasing high-fidelity execution and capital efficiency for RFQ protocols and liquidity aggregation](https://options.greeks.live/wp-content/uploads/2025/07/architecting-high-fidelity-execution-for-institutional-digital-asset-derivatives-rfq-protocols-and-systemic-liquidity-aggregation.jpg)

## Quantitative Modeling and Data Analysis

How Do You Quantify Execution Quality For RFQs? To meet MiFID II’s demands, firms must move beyond simple price comparison and adopt a multi-factor quantitative model for assessing RFQ execution quality. This involves capturing specific data points that allow for a robust and defensible analysis.

The following table details the critical data fields that a firm’s systems must capture for each RFQ event to populate the necessary reports and conduct meaningful TCA.

| Data Field | Description | Regulatory Purpose (RTS 27/28) | Strategic Purpose (TCA) |
| --- | --- | --- | --- |
| RFQ Sent Timestamp | The precise time the request for a quote was dispatched to counterparties. | Forms the baseline for measuring speed of execution. | Analyzes counterparty responsiveness and internal workflow latency. |
| Quote Received Timestamp | The time each individual quote was received from a counterparty. | Required to calculate the time between request and quote. | Measures and compares the speed of different liquidity providers. |
| Quoted Price and Size | The price and volume offered by the counterparty. | Core data for demonstrating price competitiveness. | Allows for analysis of quote quality and depth of liquidity. |
| Execution Request Timestamp | The time the trader sent the request to execute against a chosen quote. | Measures the time from quote receipt to final execution decision. | Identifies potential delays in the firm’s internal decision process. |
| Final Execution Timestamp | The time the trade was formally confirmed as executed. | Provides the final data point for total execution time. | Completes the end-to-end latency measurement for the trade. |
| Reason for Rejection | A coded reason for why non-selected quotes were not chosen (e.g. ‘Price’, ‘Size’). | Provides context for execution decisions in regulatory reports. | Helps refine the counterparty selection logic by identifying patterns in rejection. |

![Intersecting abstract geometric planes depict institutional grade RFQ protocols and market microstructure. Speckled surfaces reflect complex order book dynamics and implied volatility, while smooth planes represent high-fidelity execution channels and private quotation systems for digital asset derivatives within a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/institutional-rfq-protocols-digital-asset-microstructure-execution.jpg)

## System Integration and Technological Architecture

The operational playbook and quantitative analysis described above are only possible with a significant investment in technological architecture. The legacy systems of many firms are not equipped to handle the data intensity and workflow complexity of MiFID II.

Key integration points include:

- 
**OMS/EMS Enhancement** ▴ The firm’s core trading systems must be upgraded to include the logic for venue selection, data-driven counterparty lists, and the mandatory data capture fields. The user interface must be designed to guide traders through the compliant workflow with minimal friction.

- 
**[FIX Protocol](https://prime.greeks.live/area/fix-protocol/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) Adaptation** ▴ The Financial Information eXchange (FIX) protocol, the messaging standard for the industry, must be configured to carry the required MiFID II data. This involves using specific FIX tags to convey information such as trader and client identification, venue, and timestamps. For example, Tag 11 (ClOrdID) must be unique, and custom tags may be needed to carry specific reporting flags.

- 
**API Connectivity** ▴ Firms need robust Application Programming Interfaces (APIs) to connect to a wider range of execution venues, including OTFs and SIs. These APIs must be capable of both sending RFQs and receiving the rich post-trade data required for TCA and regulatory reporting, including the RTS 27 reports published by the venues themselves.

- 
**Centralized Data Warehouse** ▴ A central data repository is essential to store, normalize, and analyze the vast amounts of data generated by these processes. This warehouse becomes the “single source of truth” for TCA, regulatory reporting, and ongoing optimization of the firm’s execution strategy.

Ultimately, executing an RFQ strategy under MiFID II is an exercise in building a closed-loop system. The data from every trade execution feeds back into the pre-trade analysis, constantly refining the firm’s strategy and strengthening its ability to prove that it is consistently achieving the best possible result for its clients.

![Sleek, dark components with a bright turquoise data stream symbolize a Principal OS enabling high-fidelity execution for institutional digital asset derivatives. This infrastructure leverages secure RFQ protocols, ensuring precise price discovery and minimal slippage across aggregated liquidity pools, vital for multi-leg spreads](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-rfq-protocol-systemic-execution-interface.jpg)

## References

- AFME. (2017). “Guide for drafting/review of Execution Policy under MiFID II.”

- Association for Financial Markets in Europe (AMAFI). (2024). “BEST EXECUTION (MIFID 2).” AMAFI / 24-68.

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

- Risk.net. (2015). “Mifid II threatens best execution data ‘nightmare’.”

- Trax. (n.d.). “Best Execution Under MiFID II.”

![A geometric abstraction depicts a central multi-segmented disc intersected by angular teal and white structures, symbolizing a sophisticated Principal-driven RFQ protocol engine. This represents high-fidelity execution, optimizing price discovery across diverse liquidity pools for institutional digital asset derivatives like Bitcoin options, ensuring atomic settlement and mitigating counterparty risk](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-engine-for-prime-os.jpg)

## Reflection

The integration of MiFID II into the market’s architecture has permanently altered the calculus of institutional trading. The knowledge of its rules on transparency, data reporting, and best execution is foundational. The real strategic advantage, however, comes from introspection. How does your firm’s current operational framework process this new reality?

Is your technology designed to simply capture data for compliance, or does it actively use that data to refine execution logic and deliver a quantifiable edge? The directive provides the blueprint for a more transparent market system. The opportunity is to build a superior intelligence layer on top of that system, transforming a regulatory mandate into a competitive advantage.

![Glossy, intersecting forms in beige, blue, and teal embody RFQ protocol efficiency, atomic settlement, and aggregated liquidity for institutional digital asset derivatives. The sleek design reflects high-fidelity execution, prime brokerage capabilities, and optimized order book dynamics for capital efficiency](https://options.greeks.live/wp-content/uploads/2025/08/precision-engineered-digital-asset-derivatives-execution-via-optimized-rfq-protocols-enhancing-principal-operational-frameworks.jpg)

## Glossary

<a href="https://prime.greeks.live/area/liquidity-discovery/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A metallic disc, reminiscent of a sophisticated market interface, features two precise pointers radiating from a glowing central hub. This visualizes RFQ protocols driving price discovery within institutional digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-price-discovery.jpg)

## Liquidity Discovery

Meaning ▴ Liquidity Discovery defines the operational process of identifying and assessing available order flow and executable price levels across diverse market venues or internal liquidity pools, often executed in real-time. </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">
![An abstract composition featuring two overlapping digital asset liquidity pools, intersected by angular structures representing multi-leg RFQ protocols. This visualizes dynamic price discovery, high-fidelity execution, and aggregated liquidity within institutional-grade crypto derivatives OS, optimizing capital efficiency and mitigating counterparty risk](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-optimizing-aggregated-liquidity-and-multi-leg-execution-via-advanced-market-microstructure.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/pre-trade-transparency/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A transparent, convex lens, intersected by angled beige, black, and teal bars, embodies institutional liquidity pool and market microstructure. This signifies RFQ protocols for digital asset derivatives and multi-leg options spreads, enabling high-fidelity execution and atomic settlement via Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-execution-of-institutional-digital-asset-derivatives-via-advanced-rfq-protocols-for-multi-leg-spreads.jpg)

## Pre-Trade Transparency

Meaning ▴ Pre-Trade Transparency refers to the real-time dissemination of bid and offer prices, along with associated sizes, prior to the execution of a trade. </a><a href="https://prime.greeks.live/area/post-trade-reporting/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A segmented teal and blue institutional digital asset derivatives platform reveals its core market microstructure. Internal layers expose sophisticated algorithmic execution engines, high-fidelity liquidity aggregation, and real-time risk management protocols, integral to a Prime RFQ supporting Bitcoin options and Ethereum futures trading](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-prime-os-core-microstructure.jpg)

## Post-Trade Reporting

Meaning ▴ Post-Trade Reporting refers to the mandatory disclosure of executed trade details to designated regulatory bodies or public dissemination venues, ensuring transparency and market surveillance. </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">
![Interconnected modular components with luminous teal-blue channels converge diagonally, symbolizing advanced RFQ protocols for institutional digital asset derivatives. This depicts high-fidelity execution, price discovery, and aggregated liquidity across complex market microstructure, emphasizing atomic settlement, capital efficiency, and a robust Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-microstructure-protocols.jpg)

## Best Execution

Meaning ▴ Best Execution is the obligation to obtain the most favorable terms reasonably available for a client's order. </a><a href="https://prime.greeks.live/area/execution-quality/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Two sleek, pointed objects intersect centrally, forming an 'X' against a dual-tone black and teal background. This embodies the high-fidelity execution of institutional digital asset derivatives via RFQ protocols, facilitating optimal price discovery and efficient cross-asset trading within a robust Prime RFQ, minimizing slippage and adverse selection](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-prime-os-microstructure.jpg)

## Execution Quality

Meaning ▴ Execution Quality quantifies the efficacy of an order's fill, assessing how closely the achieved trade price aligns with the prevailing market price at submission, alongside consideration for speed, cost, and market impact. </a><a href="https://prime.greeks.live/question/what-are-the-primary-risk-factors-for-a-market-maker-when-quoting-a-large-derivatives-trade/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A scratched blue sphere, representing market microstructure and liquidity pool for digital asset derivatives, encases a smooth teal sphere, symbolizing a private quotation via RFQ protocol. An institutional-grade structure suggests a Prime RFQ facilitating high-fidelity execution and managing counterparty risk](https://options.greeks.live/wp-content/uploads/2025/07/institutional-rfq-protocols-optimizing-digital-asset-derivative-execution-microstructure.jpg)

## Execution Factors

A market maker's primary risk is managing the interconnected system of adverse selection, inventory, and volatility within a binding quote. </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">
![Polished metallic pipes intersect via robust fasteners, set against a dark background. This symbolizes intricate Market Microstructure, RFQ Protocols, and Multi-Leg Spread execution](https://options.greeks.live/wp-content/uploads/2025/07/precision-engineered-metallic-nodes-illustrating-rfq-protocols-for-multi-leg-digital-asset-derivatives-institutional-execution.jpg)

## Rts 28

Meaning ▴ RTS 28 refers to Regulatory Technical Standard 28 under MiFID II, which mandates investment firms and market operators to publish annual reports on the quality of execution of transactions on trading venues and for financial instruments. </a><a href="https://prime.greeks.live/area/rfq-protocol/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A luminous, multi-faceted geometric structure, resembling interlocking star-like elements, glows from a circular base. This represents a Prime RFQ for Institutional Digital Asset Derivatives, symbolizing high-fidelity execution of block trades via RFQ protocols, optimizing market microstructure for price discovery and capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-system.jpg)

## Rfq Protocol

Meaning ▴ The Request for Quote (RFQ) Protocol defines a structured electronic communication method enabling a market participant to solicit firm, executable prices from multiple liquidity providers for a specified financial instrument and quantity. </a><a href="https://prime.greeks.live/area/best-execution-policy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Sleek metallic structures with glowing apertures symbolize institutional RFQ protocols. These represent high-fidelity execution and price discovery across aggregated liquidity pools](https://options.greeks.live/wp-content/uploads/2025/07/precision-digital-asset-derivatives-trading-systems-optimizing-rfq-protocols-for-institutional-block-trade-execution.jpg)

## Best Execution Policy

Meaning ▴ The Best Execution Policy defines the obligation for a broker-dealer or trading firm to execute client orders on terms most favorable to the client. </a><a href="https://prime.greeks.live/area/central-limit-order-book/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A precise mechanical instrument with intersecting transparent and opaque hands, representing the intricate market microstructure of institutional digital asset derivatives. This visual metaphor highlights dynamic price discovery and bid-ask spread dynamics within RFQ protocols, emphasizing high-fidelity execution and latent liquidity through a robust Prime RFQ for atomic settlement](https://options.greeks.live/wp-content/uploads/2025/07/precision-engineering-driving-institutional-digital-asset-derivatives-execution-across-advanced-rfq-protocols-and-prime-brokerage-frameworks.jpg)

## Central Limit Order Book

Meaning ▴ A Central Limit Order Book is a digital repository that aggregates all outstanding buy and sell orders for a specific financial instrument, organized by price level and time of entry. </a><a href="https://prime.greeks.live/area/counterparty-selection/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A precisely engineered central blue hub anchors segmented grey and blue components, symbolizing a robust Prime RFQ for institutional trading of digital asset derivatives. This structure represents a sophisticated RFQ protocol engine, optimizing liquidity pool aggregation and price discovery through advanced market microstructure for high-fidelity execution and private quotation](https://options.greeks.live/wp-content/uploads/2025/08/prime-os-digital-asset-derivatives-rfq-execution-core-systemic-hub.jpg)

## Counterparty Selection

Meaning ▴ Counterparty selection refers to the systematic process of identifying, evaluating, and engaging specific entities for trade execution, risk transfer, or service provision, based on predefined criteria such as creditworthiness, liquidity provision, operational reliability, and pricing competitiveness within a digital asset derivatives ecosystem. </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">
![Two intersecting metallic structures form a precise 'X', symbolizing RFQ protocols and algorithmic execution in institutional digital asset derivatives. This represents market microstructure optimization, enabling high-fidelity execution of block trades with atomic settlement for capital efficiency via a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-market-microstructure-execution.jpg)

## Execution Policy

Meaning ▴ An Execution Policy defines a structured set of rules and computational logic governing the handling and execution of financial orders within a trading system. </a><a href="https://prime.greeks.live/area/organised-trading-facility/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Translucent teal glass pyramid and flat pane, geometrically aligned on a dark base, symbolize market microstructure and price discovery within RFQ protocols for institutional digital asset derivatives. This visualizes multi-leg spread construction, high-fidelity execution via a Principal's operational framework, ensuring atomic settlement for latent liquidity](https://options.greeks.live/wp-content/uploads/2025/07/transparent-geometric-structures-visualizing-multi-leg-spread-rfq-protocols-for-high-fidelity-institutional-digital-asset-derivatives-execution.jpg)

## Organised Trading Facility

Meaning ▴ An Organised Trading Facility (OTF) represents a specific type of multilateral system, as defined under MiFID II, designed for the trading of non-equity instruments. </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 dark, reflective surface showcases a metallic bar, symbolizing market microstructure and RFQ protocol precision for block trade execution. A clear sphere, representing atomic settlement or implied volatility, rests upon it, set against a teal liquidity pool](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-high-fidelity-execution-4.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/bilateral-rfq/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A spherical, eye-like structure, an Institutional Prime RFQ, projects a sharp, focused beam. This visualizes high-fidelity execution via RFQ protocols for digital asset derivatives, enabling block trades and multi-leg spreads with capital efficiency and best execution across market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/institutional-grade-prime-os-rfq-protocol-digital-asset-derivatives-block-trade-execution.jpg)

## Bilateral Rfq

Meaning ▴ A Bilateral Request for Quote (RFQ) constitutes a direct, one-to-one electronic communication channel between a liquidity taker, typically a Principal, and a specific liquidity provider. </a><a href="https://prime.greeks.live/area/order-management-system/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Visualizing a complex Institutional RFQ ecosystem, angular forms represent multi-leg spread execution pathways and dark liquidity integration. A sharp, precise point symbolizes high-fidelity execution for digital asset derivatives, highlighting atomic settlement within a Prime RFQ framework](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-high-fidelity-execution-1.jpg)

## Order Management System

Meaning ▴ A robust Order Management System is a specialized software application engineered to oversee the complete lifecycle of financial orders, from their initial generation and routing to execution and post-trade allocation. </a><a href="https://prime.greeks.live/question/how-does-an-rfq-audit-trail-support-best-execution-requirements-under-mifid-ii/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A dark, articulated multi-leg spread structure crosses a simpler underlying asset bar on a teal Prime RFQ platform. This visualizes institutional digital asset derivatives execution, leveraging high-fidelity RFQ protocols for optimal capital efficiency and precise price discovery](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-prime-os-execution.jpg)

## Under Mifid

An RFQ audit trail provides the immutable, data-driven evidence required to prove a systematic process for achieving best execution under MiFID II. </a><a href="https://prime.greeks.live/question/how-does-information-leakage-in-options-rfqs-impact-the-final-execution-price/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, abstract system interface with a central spherical lens representing real-time Price Discovery and Implied Volatility analysis for institutional Digital Asset Derivatives. Its precise contours signify High-Fidelity Execution and robust RFQ protocol orchestration, managing latent liquidity and minimizing slippage for optimized Alpha Generation](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-institutional-digital-asset-derivatives-execution-via-optimized-rfq-protocols-enhancing-market-microstructure.jpg)

## Final Execution

Information leakage in options RFQs creates adverse selection, systematically degrading the final execution price against the initiator. </a><a href="https://prime.greeks.live/area/transaction-cost-analysis/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Abstract bisected spheres, reflective grey and textured teal, forming an infinity, symbolize institutional digital asset derivatives. Grey represents high-fidelity execution and market microstructure teal, deep liquidity pools and volatility surface data](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-rfq-protocols-for-digital-asset-derivatives-execution.jpg)

## Transaction Cost Analysis

Meaning ▴ Transaction Cost Analysis (TCA) is the quantitative methodology for assessing the explicit and implicit costs incurred during the execution of financial trades. </a><a href="https://prime.greeks.live/area/fix-protocol/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, light interface, a Principal's Prime RFQ, overlays a dark, intricate market microstructure. This represents institutional-grade digital asset derivatives trading, showcasing high-fidelity execution via RFQ protocols](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-prime-os-execution-system.jpg)

## Fix Protocol

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

**Tags:** [Systematic Internaliser](https://options.greeks.live/area/systematic-internaliser/), [Execution Policy](https://options.greeks.live/area/execution-policy/), [Execution Quality](https://options.greeks.live/area/execution-quality/), [Organised Trading Facility](https://options.greeks.live/area/organised-trading-facility/), [Pre-Trade Transparency](https://options.greeks.live/area/pre-trade-transparency/), [FIX Protocol](https://options.greeks.live/area/fix-protocol/)	

## Discover More

- 
### [How Do Regulatory Frameworks like MiFID II Influence the Use of RFQ Protocols for Best Execution?](https://options.greeks.live/question/how-do-regulatory-frameworks-like-mifid-ii-influence-the-use-of-rfq-protocols-for-best-execution/)
![A precision mechanism, symbolizing an algorithmic trading engine, centrally mounted on a market microstructure surface. Lens-like features represent liquidity pools and an intelligence layer for pre-trade analytics, enabling high-fidelity execution of institutional grade digital asset derivatives via RFQ protocols within a Principal's operational framework.](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-protocol-microstructure.jpg)

MiFID II transforms RFQ protocols from discretionary dialogues into auditable, data-centric workflows to prove best execution.

- 
### [How Do Anonymous RFQs Help Institutional Traders Meet Best Execution Requirements under MiFID II?](https://options.greeks.live/question/how-do-anonymous-rfqs-help-institutional-traders-meet-best-execution-requirements-under-mifid-ii/)
![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. It reflects a Prime RFQ framework mitigating Slippage and Counterparty Risk for institutional trading.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-high-fidelity-best-execution.jpg)

Anonymous RFQs provide a discreet, auditable protocol to source liquidity, minimizing market impact and generating the evidence needed to prove best execution.

- 
### [How Does the Emergence of Systematic Internalisers Affect Best Execution Analysis for Institutional Investors?](https://options.greeks.live/question/how-does-the-emergence-of-systematic-internalisers-affect-best-execution-analysis-for-institutional-investors/)
![Precision-engineered multi-vane system with opaque, reflective, and translucent teal blades. This visualizes Institutional Grade Digital Asset Derivatives Market Microstructure, driving High-Fidelity Execution via RFQ protocols, optimizing Liquidity Pool aggregation, and Multi-Leg Spread management on a Prime RFQ.](https://options.greeks.live/wp-content/uploads/2025/07/precision-engineered-multi-vane-system-illustrating-institutional-digital-asset-derivatives-rfq-protocols-market-microstructure-optimized-liquidity-aggregation-prime-os-high-fidelity-execution.jpg)

Systematic Internalisers compel a shift in best execution analysis from simple price comparison to a multi-venue, quantitative assessment of liquidity access and market impact.

- 
### [How Does the Systematic Internaliser Regime Interact with Best Execution for Bilateral Trades?](https://options.greeks.live/question/how-does-the-systematic-internaliser-regime-interact-with-best-execution-for-bilateral-trades/)
![A gleaming, translucent sphere with intricate internal mechanisms, flanked by precision metallic probes, symbolizes a sophisticated Principal's RFQ engine. This represents the atomic settlement of multi-leg spread strategies, enabling high-fidelity execution and robust price discovery within institutional digital asset derivatives markets, minimizing latency and slippage for optimal alpha generation and capital efficiency.](https://options.greeks.live/wp-content/uploads/2025/07/inst-digital-asset-deriv-rfq-os-for-optimal-high-fidelity-trade-exec.jpg)

The SI regime provides a regulated, data-rich framework for proving best execution in bilateral trades through quoting and reporting duties.

- 
### [How Does MiFID II’s Best Execution Policy Specifically Alter RFQ Workflows for Equity Blocks?](https://options.greeks.live/question/how-does-mifid-iis-best-execution-policy-specifically-alter-rfq-workflows-for-equity-blocks/)
![A precision-engineered control mechanism, featuring a ribbed dial and prominent green indicator, signifies Institutional Grade Digital Asset Derivatives RFQ Protocol optimization. This represents High-Fidelity Execution, Price Discovery, and Volatility Surface calibration for Algorithmic Trading. The central indicator suggests Atomic Settlement within a Prime RFQ Market Microstructure.](https://options.greeks.live/wp-content/uploads/2025/07/principal-operational-framework-precision-calibration-for-institutional-digital-asset-derivatives-rfq-protocol-high-fidelity-execution-prime-os-and-volatility-surface-optimization.jpg)

MiFID II mandates a systematic, data-driven RFQ process, transforming best execution into a provable, multi-factor optimization.

- 
### [How Do Regulatory Frameworks like MiFID II Influence the Design of Rfq Systems in an Ems?](https://options.greeks.live/question/how-do-regulatory-frameworks-like-mifid-ii-influence-the-design-of-rfq-systems-in-an-ems/)
![Precision-engineered institutional-grade Prime RFQ component, showcasing a reflective sphere and teal control. This symbolizes RFQ protocol mechanics, emphasizing high-fidelity execution, atomic settlement, and capital efficiency in digital asset derivatives market microstructure.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-precision-execution-system-design.jpg)

MiFID II mandates that RFQ systems evolve from simple messaging tools into auditable, data-centric platforms proving best execution.

- 
### [How Does MiFID II Influence RFQ Data Governance and Best Execution Requirements?](https://options.greeks.live/question/how-does-mifid-ii-influence-rfq-data-governance-and-best-execution-requirements/)
![A sleek, metallic mechanism symbolizes an advanced institutional trading system. The central sphere represents aggregated liquidity and precise price discovery. Its metallic arm signifies an algorithmic trading engine, facilitating high-fidelity execution for digital asset derivatives, with intricate base circuitry depicting optimized RFQ protocols and robust market microstructure.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-engine-for-optimal-price-discovery-and-best-execution.jpg)

MiFID II mandates that RFQ protocols evolve into fully auditable, data-driven systems to prove best execution for clients.

- 
### [What Are the Key Differences in Applying Rts 28 Principles to Rfq versus Lit Markets?](https://options.greeks.live/question/what-are-the-key-differences-in-applying-rts-28-principles-to-rfq-versus-lit-markets/)
![Sharp, intersecting geometric planes in teal, deep blue, and beige form a precise, pointed leading edge against darkness. This signifies High-Fidelity Execution for Institutional Digital Asset Derivatives, reflecting complex Market Microstructure and Price Discovery. It embodies RFQ optimization, Capital Efficiency across Liquidity Pools, and Atomic Settlement via a Prime RFQ.](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-digital-asset-derivatives-rfq-market-microstructure-2.jpg)

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

- 
### [How Does RFM Integration Alter a Firm’s Best Execution Obligations?](https://options.greeks.live/question/how-does-rfm-integration-alter-a-firms-best-execution-obligations/)
![Precision-engineered modular components, with transparent elements and metallic conduits, depict a robust RFQ Protocol engine. This architecture facilitates high-fidelity execution for institutional digital asset derivatives, enabling efficient liquidity aggregation and atomic settlement within market microstructure.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-engine-optimizing-high-fidelity-execution-and-liquidity-aggregation.jpg)

RFM integration reframes best execution as an active, evidence-based duty to prove discreet liquidity sourcing provides superior client outcomes.

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---

**Original URL:** https://options.greeks.live/question/how-do-regulatory-frameworks-like-mifid-ii-impact-the-strategic-use-of-rfq-protocols/
