# How Do Systematic Internalisers Alter RFQ Counterparty Selection Strategy? ▴ Question

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

---

![A sharp, crystalline spearhead symbolizes high-fidelity execution and precise price discovery for institutional digital asset derivatives. Resting on a reflective surface, it evokes optimal liquidity aggregation within a sophisticated RFQ protocol environment, reflecting complex market microstructure and advanced algorithmic trading strategies](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-precision-execution.jpg)

![Abstract spheres depict segmented liquidity pools within a unified Prime RFQ for digital asset derivatives. Intersecting blades symbolize precise RFQ protocol negotiation, price discovery, and high-fidelity execution of multi-leg spread strategies, reflecting market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-1.jpg)

## Concept

The introduction of the [Systematic Internaliser](https://prime.greeks.live/area/systematic-internaliser/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (SI) regime fundamentally re-architected the landscape of off-exchange liquidity. For a buy-side institution, the process of sourcing liquidity via a Request for Quote (RFQ) is no longer a simple bilateral conversation with a known set of dealers. It has become an exercise in navigating a fragmented and technologically diverse ecosystem where a new type of counterparty operates with a distinct business model.

An SI is an investment firm that executes client orders on its own account on an organized, frequent, and systematic basis. This structure is not a multilateral trading venue; it is a bilateral execution mechanism that internalizes order flow.

This shift compels a strategic re-evaluation of [counterparty selection](https://prime.greeks.live/area/counterparty-selection/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). The core challenge moves from managing relationships to managing information and data. Before the formalization of the SI regime under MiFID II, RFQ [counterparty lists](https://prime.greeks.live/question/how-can-tiered-counterparty-lists-mitigate-signaling-risk-in-rfqs/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) were often static, built on long-term relationships and qualitative assessments of a dealer’s reliability. The system worked, but its efficiency was difficult to quantify.

Now, the presence of SIs introduces a new variable ▴ a counterparty that is programmatically obligated to provide quotes and whose primary function is to internalize flow, often from a wide range of clients. This creates both opportunities for [price improvement](https://prime.greeks.live/area/price-improvement/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) and new, more complex risks related to [information leakage](https://prime.greeks.live/area/information-leakage/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) and adverse selection.

> The emergence of Systematic Internalisers transforms RFQ counterparty selection from a relationship-based art into a data-driven science of risk and liquidity management.

![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)

## What Is the Core Function of a Systematic Internaliser?

A Systematic Internaliser functions as a principal, using its own capital to complete trades with its clients. Unlike a traditional broker that acts as an agent to find a matching order in the market, an SI becomes the direct counterparty to the client’s trade. This model was expanded under [MiFID II](https://prime.greeks.live/area/mifid-ii/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) to increase transparency in the over-the-counter (OTC) space by requiring these high-volume internalizers to adhere to specific quoting and reporting obligations. For instruments they declare themselves an SI in, they must provide firm quotes to clients upon request, up to a certain size, and adhere to post-trade transparency rules. 

The operational purpose is to internalize order flow, meaning the firm can net client buy and sell orders against each other or against its own inventory. This process can reduce the need to access external markets, potentially lowering transaction costs and market impact for the SI and its clients. For the buy-side firm sending an RFQ, this means they are interacting with a liquidity source that has a different set of motivations and operational mechanics than a traditional agency broker or a bank’s [trading desk](https://prime.greeks.live/area/trading-desk/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) that may not be operating under the formal SI designation.

![Intricate dark circular component with precise white patterns, central to a beige and metallic system. This symbolizes an institutional digital asset derivatives platform's core, representing high-fidelity execution, automated RFQ protocols, advanced market microstructure, the intelligence layer for price discovery, block trade efficiency, and portfolio margin](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-core.jpg)

## How Does This Impact the RFQ Process?

The [RFQ process](https://prime.greeks.live/area/rfq-process/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), a cornerstone of sourcing liquidity for large or illiquid trades, is directly impacted. The pool of potential responders to a quote request now includes entities with highly automated, price-driven business models. High-frequency trading firms, for instance, have registered as SIs, bringing a new level of quantitative rigor to the quoting process.

This alters the competitive dynamics of the RFQ auction. A buy-side trader must now consider:

- **Response Characteristics** ▴ SIs are built for speed and automated quoting. Their response times and pricing logic are driven by algorithms, which can lead to very competitive quotes on standard instruments but may differ in responsiveness for complex, multi-leg orders.

- **Information Footprint** ▴ Sending an RFQ to an SI has a different information signature than sending it to a traditional voice broker. The data is captured, processed, and may inform the SI’s future quoting behavior. Understanding how an SI uses this data is a critical part of the new strategic calculus.

- **[Best Execution](https://prime.greeks.live/area/best-execution/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) Obligations** ▴ MiFID II’s best execution requirements compel buy-side firms to justify their counterparty selection on a more granular level. A firm must be able to demonstrate, with data, why a particular set of counterparties was chosen for an RFQ. This requires a systematic approach to analyzing execution quality across all potential liquidity providers, including SIs.

The existence of SIs forces a move away from intuition-based counterparty lists toward dynamic, data-validated selection frameworks. The central question for the trading desk becomes ▴ for this specific trade, with its unique size, timing, and instrument characteristics, which combination of counterparties (SIs, banks, [agency brokers](https://prime.greeks.live/question/what-are-the-primary-alternatives-to-a-payment-for-order-flow-model-for-retail-brokers/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite)) will produce the optimal execution outcome?

![A precision-engineered metallic institutional trading platform, bisected by an execution pathway, features a central blue RFQ protocol engine. This Crypto Derivatives OS core facilitates high-fidelity execution, optimal price discovery, and multi-leg spread trading, reflecting advanced market microstructure](https://options.greeks.live/wp-content/uploads/2025/08/precision-engineered-institutional-digital-asset-derivatives-execution-core-facilitating-rfq-protocol-driven-optimal-price-discovery-and-multi-leg-spread-trading-for-capital-efficiency.jpg)

![A polished metallic control knob with a deep blue, reflective digital surface, embodying high-fidelity execution within an institutional grade Crypto Derivatives OS. This interface facilitates RFQ Request for Quote initiation for block trades, optimizing price discovery and capital efficiency in digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-control-system-interface.jpg)

## Strategy

The integration of [Systematic Internalisers](https://prime.greeks.live/area/systematic-internalisers/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) into the trading ecosystem necessitates a complete overhaul of RFQ counterparty strategy. The old paradigm, reliant on static lists and qualitative trust, is insufficient. A modern framework must be dynamic, data-centric, and capable of segmenting liquidity sources based on their intrinsic properties. This strategic shift is about moving from simply finding a counterparty to architecting a competitive auction for every trade.

The primary strategic goal is to maximize competition for your order while minimizing information leakage. These two objectives are often in tension. Broadcasting an RFQ to a wide list of counterparties might increase price competition, but it also signals your trading intent to a larger portion of the market, potentially leading to adverse price movements if the information is misused.

SIs, with their unique flow and operating models, add a new dimension to this calculation. They can be a source of significant price improvement, but their automated nature requires a different approach to engagement and risk management.

![A sleek, disc-shaped system, with concentric rings and a central dome, visually represents an advanced Principal's operational framework. It integrates RFQ protocols for institutional digital asset derivatives, facilitating liquidity aggregation, high-fidelity execution, and real-time risk management](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-rfq-protocol-engine-digital-asset-derivatives-execution.jpg)

## Segmenting the Counterparty Universe

The first step in building a sophisticated [RFQ strategy](https://prime.greeks.live/area/rfq-strategy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) is to segment the universe of potential counterparties. A trader should no longer view all dealers as a monolithic group. Instead, they can be categorized based on their operational model, which provides a strong indication of their likely behavior.

- **Systematic Internalisers (SIs)** ▴ These are often highly automated liquidity providers, including banks and electronic market makers. Their strength lies in providing competitive, firm quotes for liquid instruments up to a certain size. They are data-driven and their primary business is internalization. Interacting with them is a quantitative exercise.

- **Full-Service [Bank Dealers](https://prime.greeks.live/area/bank-dealers/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite)** ▴ These are the traditional bulge-bracket banks that provide a wide range of services, including research, capital commitment, and high-touch execution for complex trades. While many operate SIs, their relationship with a client extends beyond pure price competition. They are essential for large, illiquid, or structurally complex transactions that require significant risk warehousing.

- **Agency Brokers** ▴ These firms act purely as agents, connecting the buy-side to various sources of liquidity without taking principal risk. Their value lies in their market access, anonymity, and sophisticated execution algorithms. They are a tool for accessing the broader market, while SIs and bank dealers are sources of principal liquidity.

> A sophisticated strategy segments counterparties by function, treating SIs as quantitative price providers, banks as risk partners, and agency brokers as market access tools.

This segmentation allows for the creation of intelligent, trade-specific counterparty lists. A large block trade in a liquid government bond might be best served by an RFQ sent to a tight list of top-tier SIs and bank dealers known for their strength in that asset class. Conversely, a complex, multi-leg options strategy might require the inclusion of specialized derivatives desks and agency brokers with advanced algorithmic capabilities.

![A sleek, futuristic object with a glowing line and intricate metallic core, symbolizing a Prime RFQ for institutional digital asset derivatives. It represents a sophisticated RFQ protocol engine enabling high-fidelity execution, liquidity aggregation, atomic settlement, and capital efficiency for multi-leg spreads](https://options.greeks.live/wp-content/uploads/2025/07/advanced-institutional-digital-asset-derivatives-rfq-protocol-execution-engine-for-optimal-liquidity-aggregation-and-atomic-settlement.jpg)

## A Data-Driven Framework for Counterparty Analysis

With counterparties segmented, the next step is to evaluate their performance quantitatively. Best execution is not just about the best price; it encompasses a range of factors that must be tracked over time. A robust counterparty analysis framework is the engine of a modern RFQ strategy. This requires capturing and analyzing data for every RFQ sent.

The table below outlines a basic scorecard for this purpose. It moves beyond simple win rate to capture a more holistic view of counterparty performance. This data allows a trading desk to identify which counterparties are genuinely providing value and which may be using the RFQ process primarily for market intelligence.

### Counterparty Performance Scorecard

| Counterparty Type | Key Performance Indicator (KPI) | Description | Strategic Implication |
| --- | --- | --- | --- |
| Systematic Internaliser | Price Improvement vs. Market Mid | The amount by which the SI’s quote improved upon the prevailing mid-point of the public market spread at the time of the RFQ. | Measures the direct economic benefit of including the SI. High price improvement indicates valuable, unique liquidity. |
| Bank Dealer | Fill Rate for Large-In-Scale (LIS) Orders | The percentage of RFQs above a certain size threshold where the dealer provides a competitive quote and completes the trade. | Identifies reliable partners for block trading who are willing to commit capital and warehouse risk. |
| Agency Broker | Post-Trade Market Impact | Analysis of price movements in the public markets immediately following execution, to detect information leakage. | Measures the broker’s ability to execute discreetly and minimize the signaling risk of the trade. |
| All Types | Response Rate & Speed | The percentage of RFQs to which the counterparty responds, and the average time taken to provide a quote. | A low response rate may indicate the counterparty is selective, potentially avoiding trades where they have less of an edge. |

![Precision-engineered multi-layered architecture depicts institutional digital asset derivatives platforms, showcasing modularity for optimal liquidity aggregation and atomic settlement. This visualizes sophisticated RFQ protocols, enabling high-fidelity execution and robust pre-trade analytics](https://options.greeks.live/wp-content/uploads/2025/08/modular-digital-asset-derivative-prime-os-for-institutional-rfq-and-block-trade-execution.jpg)

![Stacked, modular components represent a sophisticated Prime RFQ for institutional digital asset derivatives. Each layer signifies distinct liquidity pools or execution venues, with transparent covers revealing intricate market microstructure and algorithmic trading logic, facilitating high-fidelity execution and price discovery within a private quotation environment](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-execution-framework.jpg)

## Execution

Translating strategy into execution requires a disciplined operational framework and the technological infrastructure to support it. The presence of Systematic Internalisers in the RFQ workflow means that manual, ad-hoc processes are no longer viable. Execution desks must adopt a systematic approach to counterparty management, data analysis, and post-trade review to meet best execution obligations and maintain a competitive edge.

![Abstract, sleek components, a dark circular disk and intersecting translucent blade, represent the precise Market Microstructure of an Institutional Digital Asset Derivatives RFQ engine. It embodies High-Fidelity Execution, Algorithmic Trading, and optimized Price Discovery within a robust Crypto Derivatives OS](https://options.greeks.live/wp-content/uploads/2025/07/principals-rfq-system-for-digital-asset-derivatives-execution.jpg)

## The Operational Playbook for SI-Aware RFQ Management

Implementing a robust RFQ process in this new environment involves a clear, multi-stage workflow. This playbook ensures that each trade is executed through a deliberate and auditable process, leveraging the unique characteristics of different counterparty types, including SIs.

- **Pre-Trade Analysis and List Construction** ▴ Before any RFQ is initiated, the order’s characteristics must be analyzed. Is it a standard size in a liquid instrument, or a large, complex, or illiquid trade? Based on this, a dynamic counterparty list is constructed from the segmented universe. For a standard corporate bond trade, the list might include three top-performing SIs and two bank dealers. For a sensitive block trade, the list might be smaller, focusing only on two trusted bank dealers to minimize information leakage.

- **Staged RFQ Execution** ▴ Instead of sending the RFQ to all selected counterparties simultaneously, a staged approach can be used. An initial RFQ could be sent to a primary group of SIs known for aggressive pricing. If their quotes are not satisfactory, a second wave can be sent to a wider list including other bank dealers. This controls the flow of information.

- **Automated Data Capture** ▴ Every data point in the RFQ lifecycle must be captured electronically. This includes the timestamp of the request, the full list of recipients, all quotes received (even from losing counterparties), the winning quote, the execution time, and the prevailing market conditions at each point. This data is the raw material for all subsequent analysis.

- **Post-Trade TCA and Scorecard Updates** ▴ Immediately following execution, a [Transaction Cost Analysis](https://prime.greeks.live/area/transaction-cost-analysis/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (TCA) report should be generated. This report compares the execution price against relevant benchmarks and measures market impact. The results of this analysis are then fed back into the quantitative counterparty scorecards, updating the performance metrics for all involved counterparties.

- **Quarterly Performance Review** ▴ On a regular basis, the trading desk must conduct a formal review of all counterparty performance. Underperforming counterparties are identified, and the reasons for their poor performance are investigated. This review may lead to changes in the standard RFQ templates or the removal of a counterparty from the approved list.

![A sleek, high-fidelity beige device with reflective black elements and a control point, set against a dynamic green-to-blue gradient sphere. This abstract representation symbolizes institutional-grade RFQ protocols for digital asset derivatives, ensuring high-fidelity execution and price discovery within market microstructure, powered by an intelligence layer for alpha generation and capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-institutional-digital-asset-derivatives-rfq-execution-terminal-system.jpg)

## Quantitative Modeling for Counterparty Selection

The heart of a modern execution process is a quantitative model that supports, rather than replaces, the trader’s judgment. The counterparty scorecard is the primary tool for this. It synthesizes various performance metrics into a single, coherent view, allowing for more informed decisions at the pre-trade stage. The table below provides a more granular, hypothetical example of such a scorecard.

> Effective execution relies on a quantitative scorecard that translates counterparty behavior into actionable intelligence for the trading desk.

### Quantitative Counterparty Scorecard (Q3 2025, Corporate Bonds)

| Counterparty | Type | RFQ Count | Response Rate (%) | Avg. Price Improvement (bps) | Rejection/Decline Rate (%) | LIS Fill Rate (%) | Composite Score |
| --- | --- | --- | --- | --- | --- | --- | --- |
| CP_A | SI | 520 | 98% | 1.2 | 2% | 65% | 8.8 |
| CP_B | Bank Dealer | 480 | 92% | 0.8 | 8% | 95% | 8.5 |
| CP_C | SI | 350 | 99% | 1.5 | 1% | 50% | 8.2 |
| CP_D | Bank Dealer | 410 | 85% | 0.5 | 15% | 91% | 7.1 |
| CP_E | Agency Broker | 150 | 100% | N/A | 0% | N/A | 7.0 |
| CP_F | SI | 600 | 75% | 0.9 | 25% | 40% | 5.5 |

In this model, the **Composite Score** could be a weighted average ▴ (0.3 Price Improvement) + (0.3 LIS [Fill Rate](https://prime.greeks.live/area/fill-rate/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite)) + (0.2 [Response Rate](https://prime.greeks.live/area/response-rate/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite)) - (0.2 Decline Rate). This model highlights that while CP_C offers the best price improvement, its lower LIS fill rate makes it less suitable for block trades compared to CP_B. It also flags CP_F as a potential “fair-weather” counterparty, responding frequently but declining a high percentage of requests, suggesting it may be selectively avoiding more difficult trades.

![A precision optical component stands on a dark, reflective surface, symbolizing a Price Discovery engine for Institutional Digital Asset Derivatives. This Crypto Derivatives OS element enables High-Fidelity Execution through advanced Algorithmic Trading and Multi-Leg Spread capabilities, optimizing Market Microstructure for RFQ protocols](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-optimal-execution-system-microstructure.jpg)

## What Are the Technological Integration Requirements?

This level of systematic execution is impossible without the right technology. The firm’s [Execution Management System](https://prime.greeks.live/area/execution-management-system/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (EMS) or Order Management System (OMS) must be the central hub for the entire workflow. Key technological capabilities include:

- **Flexible RFQ API Integration** ▴ The EMS must have robust, high-performance APIs to connect to a wide range of liquidity sources, including proprietary SI APIs and multi-dealer platforms.

- **Customizable Counterparty Lists** ▴ The system must allow traders to create and save multiple, dynamic counterparty lists that can be applied to orders based on pre-defined rules (e.g. by asset class, order size, or market condition).

- **Integrated TCA and Data Analytics** ▴ The platform should have built-in TCA tools or seamlessly integrate with a third-party provider. The system must be able to automatically ingest execution data and update the counterparty scorecards without manual intervention.

- **FIX Protocol Compliance** ▴ A deep understanding and correct implementation of the Financial Information eXchange (FIX) protocol is essential for communicating RFQs (FIX Message Type R ) and receiving quotes (FIX Message Type S ) in a standardized way with a multitude of counterparties.

Ultimately, the execution framework is a closed-loop system. Pre-trade decisions are informed by post-trade data, creating a cycle of continuous improvement. The introduction of Systematic Internalisers acted as a catalyst, forcing the evolution of the RFQ process from a simple communication protocol into a sophisticated, data-driven system for sourcing liquidity.

![A sophisticated mechanism features a segmented disc, indicating dynamic market microstructure and liquidity pool partitioning. This system visually represents an RFQ protocol's price discovery process, crucial for high-fidelity execution of institutional digital asset derivatives and managing counterparty risk within a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/advanced-digital-asset-derivatives-rfq-liquidity-aggregation-system.jpg)

## References

- European Securities and Markets Authority. “Systematic internaliser (SI) in MiFID II – a counterparty, not a trading venue.” ESMA, 2014.

- International Capital Market Association. “MiFID II/R implementation in secondary markets.” ICMA, June 2017.

- Schmerken, Ivy. “MiFID II’s Trading Hereafter ▴ Systematic Internalizers & Block Venues.” FlexTrade, March 2018.

- Arbuthnot Latham. “Best Execution Policy.” Arbuthnot Latham & Co. Limited, 2023.

- International Capital Market Association. “MiFID II implementation ▴ the Systematic Internaliser regime.” ICMA, April 2017.

- Autorité des Marchés Financiers. “MiFID II and Systematic Internalisers ▴ If Only Someone Knew This Would Happen.” AMF, July 2018.

- Marenzi, Octavio. “Unintended Consequences of MiFID II?” Markets Media, June 2017.

- European Securities and Markets Authority. “Final Report on the Technical Standards specifying the criteria for establishing and assessing the effecti.” ESMA, April 2025.

![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)

## Reflection

![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)

## Calibrating Your Execution Architecture

The emergence of the [Systematic Internaliser regime](https://prime.greeks.live/question/how-does-the-systematic-internaliser-regime-impact-best-execution-obligations-for-the-buy-side/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) provides a powerful lens through which to examine your firm’s entire execution architecture. The data and frameworks discussed here are components of a larger system. Their true value is realized when they are integrated into a coherent operational philosophy. The critical question moves from “Who should I trade with?” to “Is my operational framework designed to produce the best possible answer to that question for every single trade?”

Consider the flow of information within your own process. How seamlessly does post-trade analysis inform pre-trade decisions? Is your technology a facilitator of this loop, or a barrier? The evolution of market structure is continuous.

A static approach to execution guarantees a decay in performance. The challenge is to build a system that not only adapts to the current environment but is engineered with the flexibility to master the next structural evolution.

![An abstract system depicts an institutional-grade digital asset derivatives platform. Interwoven metallic conduits symbolize low-latency RFQ execution pathways, facilitating efficient block trade routing](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-prime-os-rfq-execution-engine.jpg)

## Glossary

<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 central metallic lens with glowing green concentric circles, flanked by curved grey shapes, embodies an institutional-grade digital asset derivatives platform. It signifies high-fidelity execution via RFQ protocols, price discovery, and algorithmic trading within market microstructure, central to a principal's operational framework](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-system-view.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/counterparty-selection/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A transparent geometric structure symbolizes institutional digital asset derivatives market microstructure. Its converging facets represent diverse liquidity pools and precise price discovery via an RFQ protocol, enabling high-fidelity execution and atomic settlement through a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-for-optimized-liquidity-aggregation-and-high-fidelity-execution.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/question/how-can-tiered-counterparty-lists-mitigate-signaling-risk-in-rfqs/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A dark, reflective surface displays a luminous green line, symbolizing a high-fidelity RFQ protocol channel within a Crypto Derivatives OS. This signifies precise price discovery for digital asset derivatives, ensuring atomic settlement and optimizing portfolio margin](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-pathway-optimizing-principal-liquidity-and-capital-efficiency.jpg)

## Counterparty Lists

Tiered counterparty lists mitigate signaling risk by structuring information release, ensuring only trusted dealers see sensitive orders first. </a><a href="https://prime.greeks.live/area/information-leakage/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, metallic module with a dark, reflective sphere sits atop a cylindrical base, symbolizing an institutional-grade Crypto Derivatives OS. This system processes aggregated inquiries for RFQ protocols, enabling high-fidelity execution of multi-leg spreads while managing gamma exposure and slippage within dark pools](https://options.greeks.live/wp-content/uploads/2025/07/principal-trading-crypto-derivatives-rfq-protocol-execution-system.jpg)

## Information Leakage

Meaning ▴ Information leakage denotes the unintended or unauthorized disclosure of sensitive trading data, often concerning an institution's pending orders, strategic positions, or execution intentions, to external market participants. </a><a href="https://prime.greeks.live/area/price-improvement/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![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](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-platform-intelligence-layer-optimizing-high-fidelity-execution.jpg)

## Price Improvement

Meaning ▴ Price improvement denotes the execution of a trade at a more advantageous price than the prevailing National Best Bid and Offer (NBBO) at the moment of order submission. </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">
![The image depicts two intersecting structural beams, symbolizing a robust Prime RFQ framework for institutional digital asset derivatives. These elements represent interconnected liquidity pools and execution pathways, crucial for high-fidelity execution and atomic settlement within market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-cross-market-execution-architecture-for-digital-assets.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/trading-desk/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A central, blue-illuminated, crystalline structure symbolizes an institutional grade Crypto Derivatives OS facilitating RFQ protocol execution. Diagonal gradients represent aggregated liquidity and market microstructure converging for high-fidelity price discovery, optimizing multi-leg spread trading for digital asset options](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-engine-11.jpg)

## Trading Desk

Meaning ▴ A Trading Desk represents a specialized operational system within an institutional financial entity, designed for the systematic execution, risk management, and strategic positioning of proprietary capital or client orders across various asset classes, with a particular focus on the complex and nascent digital asset derivatives landscape. </a><a href="https://prime.greeks.live/area/rfq-process/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A precision instrument probes a speckled surface, visualizing market microstructure and liquidity pool dynamics within a dark pool. This depicts RFQ protocol execution, emphasizing price discovery for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-flow.jpg)

## Rfq Process

Meaning ▴ The RFQ Process, or Request for Quote Process, is a formalized electronic protocol utilized by institutional participants to solicit executable price quotations for a specific financial instrument and quantity from a select group of liquidity providers. </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">
![A focused view of a robust, beige cylindrical component with a dark blue internal aperture, symbolizing a high-fidelity execution channel. This element represents the core of an RFQ protocol system, enabling bespoke liquidity for Bitcoin Options and Ethereum Futures, minimizing slippage and information leakage](https://options.greeks.live/wp-content/uploads/2025/07/institutional-grade-digital-asset-derivatives-rfq-engine-core-precision-component.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/question/what-are-the-primary-alternatives-to-a-payment-for-order-flow-model-for-retail-brokers/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, dark reflective sphere is precisely intersected by two flat, light-toned blades, creating an intricate cross-sectional design. This visually represents institutional digital asset derivatives' market microstructure, where RFQ protocols enable high-fidelity execution and price discovery within dark liquidity pools, ensuring capital efficiency and managing counterparty risk via advanced Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-market-microstructure.jpg)

## Agency Brokers

The primary alternatives to PFOF are commission-based Direct Market Access and algorithmic Smart Order Routing systems. </a><a href="https://prime.greeks.live/area/systematic-internalisers/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Abstract, layered spheres symbolize complex market microstructure and liquidity pools. A central reflective conduit represents RFQ protocols enabling block trade execution and precise price discovery for multi-leg spread strategies, ensuring high-fidelity execution within institutional trading of digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-engine-for-high-fidelity.jpg)

## Systematic Internalisers

Meaning ▴ A market participant, typically a broker-dealer, systematically executing client orders against its own inventory or other client orders off-exchange, acting as principal. </a><a href="https://prime.greeks.live/area/rfq-strategy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, multi-component device with a prominent lens, embodying a sophisticated RFQ workflow engine. Its modular design signifies integrated liquidity pools and dynamic price discovery for institutional digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-microstructure-2.jpg)

## Rfq Strategy

Meaning ▴ An RFQ Strategy, or Request for Quote Strategy, defines a systematic approach for institutional participants to solicit price quotes from multiple liquidity providers for a specific digital asset derivative instrument. </a><a href="https://prime.greeks.live/area/bank-dealers/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A polished, dark teal institutional-grade mechanism reveals an internal beige interface, precisely deploying a metallic, arrow-etched component. This signifies high-fidelity execution within an RFQ protocol, enabling atomic settlement and optimized price discovery for institutional digital asset derivatives and multi-leg spreads, ensuring minimal slippage and robust capital efficiency](https://options.greeks.live/wp-content/uploads/2025/08/quantitative-finance-driven-rfq-workflow-for-best-execution-in-digital-assets.jpg)

## Bank Dealers

Meaning ▴ Bank Dealers are regulated financial institutions that operate as principals in the market, providing two-way liquidity and facilitating the execution of trades for institutional clients, including those involving digital asset derivatives. </a><a href="https://prime.greeks.live/area/transaction-cost-analysis/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![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)

## 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/response-rate/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Sharp, intersecting elements, two light, two teal, on a reflective disc, centered by a precise mechanism. This visualizes institutional liquidity convergence for multi-leg options strategies in digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-block-trade-execution.jpg)

## Response Rate

Meaning ▴ Response Rate quantifies the efficacy of a Request for Quote (RFQ) workflow, representing the proportion of valid, actionable quotes received from liquidity providers relative to the total number of RFQs disseminated. </a><a href="https://prime.greeks.live/area/fill-rate/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Intersecting sleek components of a Crypto Derivatives OS symbolize RFQ Protocol for Institutional Grade Digital Asset Derivatives. Luminous internal segments represent dynamic Liquidity Pool management and Market Microstructure insights, facilitating High-Fidelity Execution for Block Trade strategies within a Prime Brokerage framework](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-high-fidelity-engine.jpg)

## Fill Rate

Meaning ▴ Fill Rate represents the ratio of the executed quantity of a trading order to its initial submitted quantity, expressed as a percentage. </a><a href="https://prime.greeks.live/area/execution-management-system/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sophisticated mechanical core, split by contrasting illumination, represents an Institutional Digital Asset Derivatives RFQ engine. Its precise concentric mechanisms symbolize High-Fidelity Execution, Market Microstructure optimization, and Algorithmic Trading within a Prime RFQ, enabling optimal Price Discovery and Liquidity Aggregation](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-rfq-engine-for-institutional-digital-asset-derivatives-precision-execution.jpg)

## Execution Management System

Meaning ▴ An Execution Management System (EMS) is a specialized software application engineered to facilitate and optimize the electronic execution of financial trades across diverse venues and asset classes. </a><a href="https://prime.greeks.live/question/how-does-the-systematic-internaliser-regime-impact-best-execution-obligations-for-the-buy-side/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![The image presents a stylized central processing hub with radiating multi-colored panels and blades. This visual metaphor signifies a sophisticated RFQ protocol engine, orchestrating price discovery across diverse liquidity pools](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-and-liquidity-aggregation-hub.jpg)

## Systematic Internaliser Regime

The SI regime codifies principal liquidity, compelling buy-side firms to integrate this quasi-public venue into their execution framework to prove best execution. </a>

**Tags:** [Block Trading](https://options.greeks.live/area/block-trading/), [Systematic Internalisers](https://options.greeks.live/area/systematic-internalisers/), [Market Microstructure](https://options.greeks.live/area/market-microstructure/), [Execution Management System](https://options.greeks.live/area/execution-management-system/), [Fill Rate](https://options.greeks.live/area/fill-rate/), [RFQ Strategy](https://options.greeks.live/area/rfq-strategy/)	

## Discover More

- 
### [Could the Rise of Systematic Internalisers Lead to a Permanent Two-Tiered European Equity Market?](https://options.greeks.live/question/could-the-rise-of-systematic-internalisers-lead-to-a-permanent-two-tiered-european-equity-market/)
![Abstract spheres and a translucent flow visualize institutional digital asset derivatives market microstructure. It depicts robust RFQ protocol execution, high-fidelity data flow, and seamless liquidity aggregation. This imagery underscores capital efficiency and atomic settlement within a Prime RFQ framework.](https://options.greeks.live/wp-content/uploads/2025/07/precision-market-microstructure-for-institutional-digital-asset-derivatives-leveraging-rfq-protocols-and-atomic-settlement-across-prime-os.jpg)

The rise of Systematic Internalisers has cemented a permanent, two-tiered European equity market by design.

- 
### [What Are the Primary Best Execution Considerations When Choosing between an RFQ and a Dark Pool?](https://options.greeks.live/question/what-are-the-primary-best-execution-considerations-when-choosing-between-an-rfq-and-a-dark-pool/)
![Layered abstract forms depict a Principal's Prime RFQ for institutional digital asset derivatives. A textured band signifies robust RFQ protocol and market microstructure. A bicolored sphere embodies a discrete Bitcoin Options trade, processed for high-fidelity execution within a deep liquidity pool.](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-derivatives-rfq-high-fidelity-execution-prime-os-market-microstructure.jpg)

The primary best execution consideration is aligning the order's specific characteristics with the venue that best manages the trade-off between price improvement and information leakage.

- 
### [How Can a Dealer Performance Scorecard Be Used to Optimize RFQ Panel Selection over Time?](https://options.greeks.live/question/how-can-a-dealer-performance-scorecard-be-used-to-optimize-rfq-panel-selection-over-time/)
![A symmetrical, multi-faceted digital structure, a liquidity aggregation engine, showcases translucent teal and grey panels. This visualizes diverse RFQ channels and market segments, enabling high-fidelity execution for institutional digital asset derivatives. It represents a Principal's operational framework for price discovery and atomic settlement of multi-leg spreads.](https://options.greeks.live/wp-content/uploads/2025/07/precision-liquidity-aggregation-engine-for-digital-asset-derivatives-trading.jpg)

A dealer performance scorecard optimizes RFQ panels by translating historical interactions into a predictive, quantitative framework for counterparty selection.

- 
### [How Can Transaction Cost Analysis Be Effectively Used to Evaluate the Performance of Multi-Dealer RFQ Executions?](https://options.greeks.live/question/how-can-transaction-cost-analysis-be-effectively-used-to-evaluate-the-performance-of-multi-dealer-rfq-executions/)
![A sleek, multi-component device with a prominent lens, embodying a sophisticated RFQ workflow engine. Its modular design signifies integrated liquidity pools and dynamic price discovery for institutional digital asset derivatives. This system facilitates high-fidelity execution, real-time risk aggregation, and optimized capital efficiency.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-microstructure-2.jpg)

TCA systematically quantifies RFQ execution quality, transforming trade data into a strategic framework for optimizing dealer selection and performance.

- 
### [How Does an Automated RFQ System Mitigate Information Leakage Risk?](https://options.greeks.live/question/how-does-an-automated-rfq-system-mitigate-information-leakage-risk/)
![A sleek, segmented capsule, slightly ajar, embodies a secure RFQ protocol for institutional digital asset derivatives. It facilitates private quotation and high-fidelity execution of multi-leg spreads a blurred blue sphere signifies dynamic price discovery and atomic settlement within a Prime RFQ.](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-digital-asset-derivatives-rfq-protocol-high-fidelity-execution-3.jpg)

An automated RFQ system mitigates information leakage by replacing open-market broadcasts with controlled, private auctions.

- 
### [What Are the Key Metrics for Evaluating Counterparty Performance in RFQ Protocols?](https://options.greeks.live/question/what-are-the-key-metrics-for-evaluating-counterparty-performance-in-rfq-protocols/)
![Curved, segmented surfaces in blue, beige, and teal, with a transparent cylindrical element against a dark background. This abstractly depicts volatility surfaces and market microstructure, facilitating high-fidelity execution via RFQ protocols for digital asset derivatives, enabling price discovery and revealing latent liquidity for institutional trading.](https://options.greeks.live/wp-content/uploads/2025/07/optimized-rfq-protocol-dynamics-for-institutional-crypto-derivatives.jpg)

Key metrics for evaluating RFQ counterparty performance are response dynamics, pricing, execution certainty, and post-trade analysis.

- 
### [How Does Counterparty Selection Influence the Effectiveness of a Staged RFQ?](https://options.greeks.live/question/how-does-counterparty-selection-influence-the-effectiveness-of-a-staged-rfq/)
![A macro view reveals a robust metallic component, signifying a critical interface within a Prime RFQ. This secure mechanism facilitates precise RFQ protocol execution, enabling atomic settlement for institutional-grade digital asset derivatives, embodying high-fidelity execution.](https://options.greeks.live/wp-content/uploads/2025/07/core-secure-institutional-digital-asset-derivatives-rfq-trade-system-element.jpg)

Counterparty selection in a staged RFQ dictates execution quality by managing the trade-off between price discovery and information leakage.

- 
### [How Does an RFQ Protocol Alter the Balance of Power in Price Negotiations?](https://options.greeks.live/question/how-does-an-rfq-protocol-alter-the-balance-of-power-in-price-negotiations/)
![A metallic stylus balances on a central fulcrum, symbolizing a Prime RFQ orchestrating high-fidelity execution for institutional digital asset derivatives. This visualizes price discovery within market microstructure, ensuring capital efficiency and best execution through RFQ protocols.](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-rfq-for-digital-asset-derivatives-low-latency-best-execution.jpg)

The RFQ protocol shifts negotiation power by converting public price discovery into a controlled, private auction where information containment becomes the primary strategic asset.

- 
### [How Does an Integrated EMS Improve Transaction Cost Analysis for RFQ Trades?](https://options.greeks.live/question/how-does-an-integrated-ems-improve-transaction-cost-analysis-for-rfq-trades/)
![A precise geometric prism reflects on a dark, structured surface, symbolizing institutional digital asset derivatives market microstructure. This visualizes block trade execution and price discovery for multi-leg spreads via RFQ protocols, ensuring high-fidelity execution and capital efficiency within Prime RFQ.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-precision-execution.jpg)

An integrated EMS transforms RFQ trading from a conversational art into a data science, improving TCA through systematic data capture.

---

## 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 Systematic Internalisers Alter RFQ Counterparty Selection Strategy?",
            "item": "https://options.greeks.live/question/how-do-systematic-internalisers-alter-rfq-counterparty-selection-strategy/"
        }
    ]
}
```

```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-systematic-internalisers-alter-rfq-counterparty-selection-strategy/"
    },
    "headline": "How Do Systematic Internalisers Alter RFQ Counterparty Selection Strategy? \u25b4 Question",
    "description": "Systematic Internalisers force a shift to data-driven RFQ strategies, optimizing counterparty selection for superior execution. \u25b4 Question",
    "url": "https://options.greeks.live/question/how-do-systematic-internalisers-alter-rfq-counterparty-selection-strategy/",
    "datePublished": "2025-08-06T10:46:01+00:00",
    "dateModified": "2025-08-06T10:46:05+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/institutional-digital-asset-derivatives-rfq-engine-optimizing-multi-leg-spreads-for-optimal-capital-efficiency.jpg",
        "caption": "This abstract rendering illustrates an advanced institutional digital asset derivatives RFQ engine, engineered for precise market microstructure navigation. Its robust design signifies a Prime RFQ framework for optimal price discovery and high-fidelity execution of complex multi-leg spreads. The system supports systematic trading strategies, enabling capital efficiency through real-time portfolio margin management. It ensures best execution by aggregating latent liquidity, reducing slippage and mitigating counterparty risk for prime brokerage clients."
    },
    "keywords": [
        "Algorithmic Trading",
        "Bank Dealers",
        "Best Execution",
        "Block Trading",
        "Counterparty Selection",
        "Execution Management System",
        "Fill Rate",
        "Information Leakage",
        "International Capital Market Association",
        "Liquidity Sourcing",
        "Market Microstructure",
        "MiFID II",
        "Price Improvement",
        "Response Rate",
        "RFQ Process",
        "RFQ Strategy",
        "Systematic Internaliser",
        "Systematic Internalisers",
        "Trading Desk",
        "Transaction Cost Analysis"
    ]
}
```

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

```json
{
    "@context": "https://schema.org",
    "@type": "FAQPage",
    "mainEntity": [
        {
            "@type": "Question",
            "name": "What Is The Core Function Of A Systematic Internaliser?",
            "acceptedAnswer": {
                "@type": "Answer",
                "text": "A Systematic Internaliser functions as a principal, using its own capital to complete trades with its clients. Unlike a traditional broker that acts as an agent to find a matching order in the market, an SI becomes the direct counterparty to the client's trade. This model was expanded under MiFID II to increase transparency in the over-the-counter (OTC) space by requiring these high-volume internalizers to adhere to specific quoting and reporting obligations. For instruments they declare themselves an SI in, they must provide firm quotes to clients upon request, up to a certain size, and adhere to post-trade transparency rules. "
            }
        },
        {
            "@type": "Question",
            "name": "How Does This Impact The RFQ Process?",
            "acceptedAnswer": {
                "@type": "Answer",
                "text": "The RFQ process, a cornerstone of sourcing liquidity for large or illiquid trades, is directly impacted. The pool of potential responders to a quote request now includes entities with highly automated, price-driven business models. High-frequency trading firms, for instance, have registered as SIs, bringing a new level of quantitative rigor to the quoting process. This alters the competitive dynamics of the RFQ auction. A buy-side trader must now consider:"
            }
        },
        {
            "@type": "Question",
            "name": "What Are The Technological Integration Requirements?",
            "acceptedAnswer": {
                "@type": "Answer",
                "text": "This level of systematic execution is impossible without the right technology. The firm's Execution Management System (EMS) or Order Management System (OMS) must be the central hub for the entire workflow. Key technological capabilities include:"
            }
        }
    ]
}
```


---

**Original URL:** https://options.greeks.live/question/how-do-systematic-internalisers-alter-rfq-counterparty-selection-strategy/
