# How Do Transaction Cost Analysis Models Evaluate the Effectiveness of an RFQ Execution? ▴ Question

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

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![An abstract composition of interlocking, precisely engineered metallic plates represents a sophisticated institutional trading infrastructure. Visible perforations within a central block symbolize optimized data conduits for high-fidelity execution and capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-multi-leg-execution-layer.jpg)

![Geometric shapes symbolize an institutional digital asset derivatives trading ecosystem. A pyramid denotes foundational quantitative analysis and the Principal's operational framework](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-derivatives-rfq-execution-system-microstructure.jpg)

## Concept

Evaluating the effectiveness of a Request for Quote (RFQ) execution is an exercise in measuring the unseen. It requires a fundamental shift from the public auction dynamics of a lit order book to the discrete, bilateral negotiations that define [off-book liquidity](https://prime.greeks.live/area/off-book-liquidity/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) sourcing. A [Transaction Cost Analysis](https://prime.greeks.live/area/transaction-cost-analysis/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (TCA) model designed for this environment functions as a system of high-fidelity measurement, translating the nuanced interactions of a private price discovery process into a quantifiable, actionable intelligence layer. The core challenge is to architect a framework that captures not just the final execution price, but the entire lifecycle of the quote solicitation protocol, from the initial signal of intent to the final settlement.

The central purpose of such a model is to render the opaque transparent. In a standard market order, the benchmark is the continuous, visible state of the order book at the moment of decision. For a [bilateral price discovery](https://prime.greeks.live/area/bilateral-price-discovery/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), the initial state is fragmented, existing only in the potential responses of selected liquidity providers. Therefore, a robust [TCA model](https://prime.greeks.live/area/tca-model/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) for this protocol must reconstruct a synthetic benchmark from disparate data points.

It must account for the information footprint of the inquiry itself, the quality and timeliness of the responses, and the opportunity cost embedded in both the chosen quote and the quotes left behind. This is an architectural endeavor, building a complete picture of [execution quality](https://prime.greeks.live/area/execution-quality/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) from a series of private, asynchronous events.

![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)

## What Defines RFQ Execution Quality?

The quality of a quote solicitation execution extends far beyond the final price. It is a composite measure reflecting the efficiency of the entire communication and negotiation process. A superior execution is one that secures a competitive price while minimizing [information leakage](https://prime.greeks.live/area/information-leakage/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) and operational friction. The system must therefore measure the decay in market conditions from the moment the decision to trade is made, attributing it correctly to either general market drift or the specific impact of the inquiry.

This involves capturing precise timestamps at every stage of the RFQ lifecycle, from the moment the request is sent to the moment a specific quote is accepted. This temporal analysis forms the backbone of the evaluation, allowing for the isolation of delays and the quantification of their cost.

> A TCA model for RFQs transforms a series of private negotiations into a clear, data-driven assessment of execution performance and counterparty behavior.

Furthermore, the analysis must extend to the counterparties themselves. The model evaluates the behavior of each liquidity provider within the context of the institution’s objectives. This includes their reliability in responding, the competitiveness of their pricing across different market conditions, and the stability of their quotes between submission and execution.

By tracking these behavioral metrics over time, the TCA model builds a dynamic understanding of the liquidity landscape, enabling the institution to systematically refine its counterparty selection and optimize its routing decisions for future trades. The effectiveness of the execution is thus a reflection of the system’s ability to learn and adapt based on empirical performance data.

![A translucent sphere with intricate metallic rings, an 'intelligence layer' core, is bisected by a sleek, reflective blade. This visual embodies an 'institutional grade' 'Prime RFQ' enabling 'high-fidelity execution' of 'digital asset derivatives' via 'private quotation' and 'RFQ protocols', optimizing 'capital efficiency' and 'market microstructure' for 'block trade' operations](https://options.greeks.live/wp-content/uploads/2025/07/precision-rfq-engine-for-digital-asset-derivatives-best-execution.jpg)

![A sleek cream-colored device with a dark blue optical sensor embodies Price Discovery for Digital Asset Derivatives. It signifies High-Fidelity Execution via RFQ Protocols, driven by an Intelligence Layer optimizing Market Microstructure for Algorithmic Trading on a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-high-fidelity-execution-engine-optimized-rfq-protocols-prime-os-intelligence-layer.jpg)

## Strategy

Architecting a TCA strategy for RFQ protocols requires a multi-layered approach to benchmarking. A single metric is insufficient to capture the complexities of a negotiated trade. The strategic objective is to create a constellation of benchmarks that, when viewed together, provide a comprehensive portrait of execution quality. This strategy moves beyond a simple post-trade cost calculation to encompass pre-trade analysis, real-time decision support, and long-term counterparty performance management.

The framework is designed to answer three critical questions ▴ Did we achieve a fair price? What was the cost of the information signaling our intent? And how can we improve the outcome of the next trade?

![A sophisticated apparatus, potentially a price discovery or volatility surface calibration tool. A blue needle with sphere and clamp symbolizes high-fidelity execution pathways and RFQ protocol integration within a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-rfq-protocol-institutional-digital-asset-derivatives-execution.jpg)

## Selecting the Appropriate Benchmarks

The foundation of any TCA strategy is the selection of relevant benchmarks. For RFQ executions, these benchmarks must account for the time-sensitive and bilateral nature of the protocol. Standard benchmarks used for algorithmic orders on lit markets must be adapted to provide meaningful insight.

- **[Implementation Shortfall](https://prime.greeks.live/area/implementation-shortfall/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite)** ▴ This remains the paramount benchmark. It measures the total cost of execution relative to the market price at the moment the decision to trade was made (the “[arrival price](https://prime.greeks.live/area/arrival-price/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite)”). For an RFQ, the arrival price is the mid-market price at the timestamp the inquiry is initiated. This benchmark captures the full cost of implementation, including price drift during the quoting process and the market impact of the chosen execution. It is the most holistic measure of direct execution cost.

- **[Spread Capture Analysis](https://prime.greeks.live/area/spread-capture-analysis/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite)** ▴ This metric evaluates the [execution price](https://prime.greeks.live/area/execution-price/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) relative to the prevailing bid-ask spread at the time of the trade. It is particularly potent for RFQs as it directly measures the ability to negotiate a price superior to what might be available on a lit screen. A high percentage of spread capture indicates effective negotiation and a competitive quote from the liquidity provider. It quantifies the value added through the bilateral price discovery process.

- **Time-Weighted Average Price (TWAP)** ▴ While more commonly associated with algorithmic execution over a period, a TWAP benchmark can be used to assess the [RFQ execution](https://prime.greeks.live/area/rfq-execution/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) against the average market price during the inquiry window. Comparing the final execution price to the TWAP over the period from RFQ initiation to execution provides context on market momentum and whether the negotiation process resulted in a price that was favorable relative to the period’s average.

These benchmarks provide different lenses through which to view the same event. Implementation Shortfall provides the overall cost, [Spread Capture](https://prime.greeks.live/area/spread-capture/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) details the negotiation skill, and TWAP offers market context. A sound strategy utilizes all three to build a complete picture.

![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)

## Comparative Analysis of RFQ Benchmarks

Choosing the right combination of benchmarks depends on the specific goals of the analysis. Each offers a different perspective on the execution’s success, and their strengths and weaknesses must be understood within the RFQ context.

| Benchmark | Primary Purpose | Strengths in RFQ Context | Limitations in RFQ Context |
| --- | --- | --- | --- |
| Implementation Shortfall (Arrival Price) | Measures total execution cost from the moment of decision. | Provides a complete, holistic cost figure. Aligns directly with the portfolio manager’s decision timing. Captures price slippage during the quoting window. | Can be influenced by general market drift unrelated to the RFQ. Requires highly accurate timestamping of the trade decision. |
| Spread Capture | Measures negotiation effectiveness against the visible market. | Directly quantifies the value of the RFQ protocol. Excellent for comparing dealer competitiveness. Simple to understand and communicate. | Dependent on the quality and accuracy of the bid-ask spread data at the exact moment of execution. Less effective in very wide or illiquid markets. |
| Time-Weighted Average Price (TWAP) | Provides context against average price during the execution window. | Smooths out short-term price volatility. Useful for post-trade reviews to assess timing in a trending market. | Less relevant for the point-in-time decision of accepting a quote. Can be misleading if the market moves sharply during the RFQ window. |

![A sophisticated, multi-component system propels a sleek, teal-colored digital asset derivative trade. The complex internal structure represents a proprietary RFQ protocol engine with liquidity aggregation and price discovery mechanisms](https://options.greeks.live/wp-content/uploads/2025/07/principals-high-fidelity-rfq-engine-for-digital-asset-derivatives-execution.jpg)

## Beyond Price How to Measure Information Leakage?

A sophisticated TCA strategy must also quantify factors beyond the execution price, chief among them being information leakage. Information leakage occurs when the act of sending an RFQ signals trading intent to the market, causing prices to move adversely before the trade is executed. Measuring this is critical for evaluating the discretion of the protocol and the behavior of the counterparties.

> Effective TCA strategy for RFQs integrates price-based benchmarks with behavioral metrics to create a holistic dealer performance scorecard.

This is achieved by analyzing market price movements in the seconds and milliseconds immediately following the dissemination of the RFQ to the selected dealers. The model establishes a baseline of normal market volatility for the instrument. It then compares the price action post-RFQ against this baseline. A statistically significant deviation, particularly one that moves against the trader’s intended direction, is a strong indicator of leakage.

The model can attribute this leakage to specific dealers by analyzing market movements after sending RFQs to different counterparty groups over time. This analysis transforms the TCA model from a simple reporting tool into a powerful risk management system, helping to preserve the integrity of the institution’s trading strategy.

![A symmetrical, multi-faceted geometric structure, a Prime RFQ core for institutional digital asset derivatives. Its precise design embodies high-fidelity execution via RFQ protocols, enabling price discovery, liquidity aggregation, and atomic settlement within market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-institutional-digital-asset-options-rfq-engine.jpg)

![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)

## Execution

The execution of a [Transaction Cost](https://prime.greeks.live/area/transaction-cost/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) Analysis model for RFQs is an engineering discipline. It involves architecting a data pipeline, implementing precise quantitative models, and designing an analytical framework that delivers actionable intelligence. This is where strategic concepts are translated into operational reality.

The system must be capable of capturing high-frequency data, performing complex calculations in near real-time, and presenting the results in a format that supports both tactical decision-making and long-term strategic review. The ultimate goal is to build a closed-loop system where the outputs of the TCA model directly inform and improve future execution choices.

![A multi-layered, institutional-grade device, poised with a beige base, dark blue core, and an angled mint green intelligence layer. This signifies a Principal's Crypto Derivatives OS, optimizing RFQ protocols for high-fidelity execution, precise price discovery, and capital efficiency within market microstructure](https://options.greeks.live/wp-content/uploads/2025/08/principal-digital-asset-derivatives-rfq-execution-system-intelligence.jpg)

## The Operational Playbook for RFQ TCA

Implementing a robust RFQ [TCA system](https://prime.greeks.live/area/tca-system/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) follows a clear, multi-stage process. This operational playbook ensures that the system is built on a solid foundation of high-quality data and rigorous analysis, transforming raw trade information into a strategic asset.

- **Data Architecture Design** ▴ The first step is to define and establish the complete data schema required for the analysis. This involves integrating data feeds from the [Execution Management System](https://prime.greeks.live/area/execution-management-system/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (EMS), market data providers, and any internal order management systems. Precision is paramount; every critical event in the RFQ lifecycle must be timestamped to the highest possible resolution, typically microseconds.

- **Benchmark Configuration** ▴ The system must be configured to calculate the chosen benchmarks. This involves setting rules for determining the arrival price for different order types and sourcing the reference market data (e.g. composite quotes, primary exchange data) for calculating spread capture and market impact.

- **Metric Calculation Engine** ▴ A core processing engine is built to perform the TCA calculations. This engine ingests the event data and, for each RFQ, computes the suite of metrics defined in the strategy, such as implementation shortfall, spread capture, response times, and information leakage indicators.

- **[Dealer Performance](https://prime.greeks.live/area/dealer-performance/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) Module** ▴ This module aggregates the single-trade TCA results over time to build comprehensive performance scorecards for each liquidity provider. It tracks metrics like response rates, quote competitiveness, fill rates, and post-trade price reversion.

- **Reporting and Visualization Layer** ▴ The final layer consists of dashboards and reporting tools. These interfaces must be designed to present the complex data in an intuitive way, allowing traders to quickly identify outlier executions and for managers to analyze long-term trends in execution quality and counterparty performance.

- **Feedback Loop Integration** ▴ The system’s value is maximized when its outputs are fed back into the pre-trade process. The dealer performance scores should be integrated into the EMS to automatically inform and rank counterparty selection for future RFQs, creating a data-driven, self-optimizing execution workflow.

![A sleek metallic teal execution engine, representing a Crypto Derivatives OS, interfaces with a luminous pre-trade analytics display. This abstract view depicts institutional RFQ protocols enabling high-fidelity execution for multi-leg spreads, optimizing market microstructure and atomic settlement](https://options.greeks.live/wp-content/uploads/2025/07/advanced-institutional-digital-asset-derivatives-rfq-protocol-engine-for-high-fidelity-execution-and-market-microstructure-analysis.jpg)

## Quantitative Modeling and Data Analysis

The core of the TCA system is its quantitative model. This requires a granular data structure to function correctly. The following table illustrates the essential data points captured for a single RFQ, forming the raw material for the analysis.

| Field Name | Description | Example Value |
| --- | --- | --- |
| RequestID | Unique identifier for the RFQ. | RFQ-20250806-A7B3 |
| InstrumentID | Identifier for the traded security. | XYZ Corp 5.25% 2030 |
| Direction | Side of the trade. | BUY |
| Size | Quantity of the instrument. | 10,000,000 |
| Timestamp_Initiated | Time the RFQ was sent to dealers (UTC). | 2025-08-06 15:46:05.123456 |
| Arrival_Price_Mid | Mid-market price at Timestamp_Initiated. | 101.505 |
| DealerID | Identifier for the responding dealer. | DEALER-04 |
| Timestamp_QuoteRcvd | Time the dealer’s quote was received (UTC). | 2025-08-06 15:46:06.345678 |
| Dealer_Bid | The bid price quoted by the dealer. | 101.490 |
| Dealer_Offer | The offer price quoted by the dealer. | 101.530 |
| Timestamp_Executed | Time the quote was accepted/executed (UTC). | 2025-08-06 15:46:07.987654 |
| Execution_Price | The final price of the transaction. | 101.530 |
| Market_Mid_At_Exec | Mid-market price at Timestamp_Executed. | 101.515 |

Using this data, the system calculates key performance indicators. For the example above (a BUY order):

- **Response Time** ▴ Timestamp_QuoteRcvd – Timestamp_Initiated = 1.222222 seconds. This measures dealer responsiveness.

- **Implementation Shortfall (in bps)** ▴ ((Execution_Price – Arrival_Price_Mid) / Arrival_Price_Mid) 10000 = ((101.530 – 101.505) / 101.505) 10000 = 2.46 bps. This is the total cost relative to the decision time.

- **Spread Capture (as % of half-spread)** ▴ Since it’s a buy order, we compare the execution price to the market mid at execution. The execution was at the dealer’s offer, which was higher than the market mid. This results in negative spread capture, indicating a cost relative to the mid. (Market_Mid_At_Exec – Execution_Price) / (Execution_Price – Dealer_Bid) = (101.515 – 101.530) / (101.530 – 101.490) = -0.015 / 0.040 = -37.5%. This quantifies how much worse the price was than the prevailing mid-point.

![Abstract layers in grey, mint green, and deep blue visualize a Principal's operational framework for institutional digital asset derivatives. The textured grey signifies market microstructure, while the mint green layer with precise slots represents RFQ protocol parameters, enabling high-fidelity execution, private quotation, capital efficiency, and atomic settlement](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-layered-rfq-protocol-for-digital-asset-execution-system.jpg)

## Predictive Scenario Analysis

Consider a portfolio manager needing to sell a large, 500,000-share block of an illiquid stock, ACME Corp. The pre-trade TCA system flags this as a high-impact trade, recommending an RFQ protocol to 5 selected dealers based on historical performance data. The decision to trade is made at 10:30:00 AM, with the stock’s mid-price at $50.00. This becomes the arrival price.

The RFQ is sent. The TCA system begins monitoring the market for abnormal price action. Within 30 seconds, the system detects a slight but statistically significant dip in ACME’s price, isolated to one ECN where one of the five dealers is known to be a primary market maker.

This is flagged as potential information leakage. The system logs the price at 10:30:30 AM as $49.98.

Quotes arrive over the next two minutes. Dealer A, the one suspected of leakage, provides the worst quote at $49.85. Dealer B provides the best quote at $49.92. Dealers C, D, and E are clustered around $49.90.

The trader executes with Dealer B at 10:32:00 AM. The market mid-price at this time is $49.95.

> A truly effective TCA system moves from post-trade reporting to pre-trade prediction, using historical data to forecast costs and guide execution strategy.

The post-trade analysis provides a multi-dimensional view. The total Implementation Shortfall is ($50.00 – $49.92) 500,000 = $40,000, or 16 bps. The TCA model decomposes this cost. It attributes the first 2 cents of slippage ($10,000) to the information leakage event, linking it directly to the RFQ dissemination.

The remaining 6 cents of slippage ($30,000) is attributed to the execution process itself. The Spread Capture for Dealer B’s winning quote is positive, as the execution price of $49.92 was better than the market bid of $49.90 at the time. However, the system’s dealer scorecard downgrades Dealer A significantly due to the leakage event. The next time a similar trade is contemplated, the system will recommend excluding Dealer A from the inquiry, demonstrating a direct, data-driven feedback loop that refines the execution process and systematically reduces costs over time.

![A precise stack of multi-layered circular components visually representing a sophisticated Principal Digital Asset RFQ framework. Each distinct layer signifies a critical component within market microstructure for high-fidelity execution of institutional digital asset derivatives, embodying liquidity aggregation across dark pools, enabling private quotation and atomic settlement](https://options.greeks.live/wp-content/uploads/2025/07/principal-digital-asset-rfq-protocol-layers-for-high-fidelity-execution.jpg)

## System Integration and Technological Architecture

The technological architecture of an RFQ TCA system is critical to its success. It must be designed for high-throughput data ingestion, low-latency processing, and seamless integration with the existing trading infrastructure. The core components typically include a time-series database optimized for financial data, a complex event processing (CEP) engine to identify patterns like information leakage in real time, and a set of APIs for system integration.

Integration with the firm’s EMS is the most crucial link. This is often achieved via the FIX (Financial Information eXchange) protocol or dedicated REST APIs. The EMS sends messages to the TCA system at each stage of the RFQ:

- **On RFQ Initiation** ▴ The EMS sends a message containing the RequestID, InstrumentID, Side, Size, and the list of dealers. The TCA system captures this and immediately queries the market data feed for the arrival price.

- **On Quote Arrival** ▴ As each dealer responds, the EMS forwards the quote ( DealerID, Bid, Offer, Timestamp ) to the TCA system.

- **On Execution** ▴ The final execution report, including the Execution_Price and Timestamp, is sent to the TCA system to complete the record.

This tight integration allows the TCA system to build a complete, time-stamped record of the trade lifecycle without manual intervention. Furthermore, the TCA system exposes its own API, allowing the EMS to pull dealer performance scores pre-trade. This enables the creation of intelligent order routing logic, where the EMS can automatically suggest or select counterparties for an RFQ based on the empirical, risk-adjusted performance data supplied by the TCA system. This creates a powerful symbiosis between the execution platform and the analysis engine.

![A central luminous, teal-ringed aperture anchors this abstract, symmetrical composition, symbolizing an Institutional Grade Prime RFQ Intelligence Layer for Digital Asset Derivatives. Overlapping transparent planes signify intricate Market Microstructure and Liquidity Aggregation, facilitating High-Fidelity Execution via Automated RFQ protocols for optimal Price Discovery](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-prime-os-intelligence-layer.jpg)

## References

- Al-Rjoub, Samer, et al. “Transaction Cost Analysis ▴ A-P-I Based Algorithmic Framework.” Journal of Financial and Quantitative Analysis, vol. 55, no. 2, 2020, pp. 643-671.

- Bessembinder, Hendrik. “Trade Execution Costs and Market Quality after Decimalization.” Journal of Financial and Quantitative Analysis, vol. 38, no. 4, 2003, pp. 747-777.

- Chordia, Tarun, et al. “A-P-I, Trading Activity, and Execution Costs in Equity Markets.” Journal of Financial Economics, vol. 87, no. 1, 2008, pp. 183-205.

- Harris, Larry. “Trading and Exchanges ▴ Market Microstructure for Practitioners.” Oxford University Press, 2003.

- Keim, Donald B. and Ananth Madhavan. “The-Costs of Institutional Equity Trades.” Financial Analysts Journal, vol. 50, no. 4, 1994, pp. 50-69.

- Lehalle, Charles-Albert, and Sophie Laruelle. “Market Microstructure in Practice.” World Scientific Publishing, 2013.

- Madhavan, Ananth. “Market Microstructure ▴ A Survey.” Journal of Financial Markets, vol. 3, no. 3, 2000, pp. 205-258.

- O’Hara, Maureen. “Market Microstructure Theory.” Blackwell Publishing, 1995.

- Stoll, Hans R. “The-Supply and Demand for Equity Market Liquidity.” Journal of Financial Markets, vol. 3, no. 1, 2000, pp. 1-38.

- Tradeweb. “Transaction Cost Analysis (TCA).” Tradeweb.com, 2023.

![An institutional grade system component, featuring a reflective intelligence layer lens, symbolizes high-fidelity execution and market microstructure insight. This enables price discovery for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-precision-rfq-execution-system-interface.jpg)

## Reflection

The architecture of a Transaction [Cost Analysis](https://prime.greeks.live/area/cost-analysis/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) system for bilateral protocols is a mirror. It reflects the sophistication of an institution’s entire trading apparatus. The data it generates is more than a record of past performance; it is a blueprint for future strategy. By quantifying the subtle dynamics of negotiation, information, and counterparty behavior, this system provides the foundational intelligence required to navigate complex liquidity landscapes with precision.

The ultimate value of such a system is realized when its insights are fully integrated into the firm’s operational DNA, transforming every trade into an opportunity for refinement. The question then becomes how this enhanced intelligence layer can be leveraged not only to optimize execution, but to inform the very structure of the investment process itself.

![Intricate core of a Crypto Derivatives OS, showcasing precision platters symbolizing diverse liquidity pools and a high-fidelity execution arm. This depicts robust principal's operational framework for institutional digital asset derivatives, optimizing RFQ protocol processing and market microstructure for best execution](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-microstructure-execution-system.jpg)

## Glossary

<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 sleek, modular metallic component, split beige and teal, features a central glossy black sphere. Precision details evoke an institutional grade Prime RFQ intelligence layer module](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-core-precision-platform-system.jpg)

## Transaction Cost Analysis

Meaning ▴ Transaction Cost Analysis (TCA), in the context of cryptocurrency trading, is the systematic process of quantifying and evaluating all explicit and implicit costs incurred during the execution of digital asset trades. </a><a href="https://prime.greeks.live/area/off-book-liquidity/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![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)

## Off-Book Liquidity

Meaning ▴ Off-Book Liquidity refers to trading volume in digital assets that is executed outside of a public exchange's central, transparent order book. </a><a href="https://prime.greeks.live/area/bilateral-price-discovery/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Sleek, metallic form with precise lines represents a robust Institutional Grade Prime RFQ for Digital Asset Derivatives. The prominent, reflective blue dome symbolizes an Intelligence Layer for Price Discovery and Market Microstructure visibility, enabling High-Fidelity Execution via RFQ protocols](https://options.greeks.live/wp-content/uploads/2025/08/prime-os-rfq-protocol-high-fidelity-digital-asset-derivatives-engine.jpg)

## Bilateral Price Discovery

Meaning ▴ Bilateral Price Discovery refers to the process where the fair market price of an asset, particularly in crypto institutional options trading or large block trades, is determined through direct, one-on-one negotiations between two counterparties. </a><a href="https://prime.greeks.live/area/tca-model/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![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](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)

## Tca Model

Meaning ▴ A TCA Model, or Transaction Cost Analysis Model, is a quantitative framework designed to measure and attribute the explicit and implicit costs associated with executing financial trades. </a><a href="https://prime.greeks.live/area/execution-quality/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A 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)

## Execution Quality

Meaning ▴ Execution quality, within the framework of crypto investing and institutional options trading, refers to the overall effectiveness and favorability of how a trade order is filled. </a><a href="https://prime.greeks.live/area/information-leakage/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek metallic device with a central translucent sphere and dual sharp probes. This symbolizes an institutional-grade intelligence layer, driving high-fidelity execution for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-platform-precision.jpg)

## Information Leakage

Meaning ▴ Information leakage, in the realm of crypto investing and institutional options trading, refers to the inadvertent or intentional disclosure of sensitive trading intent or order details to other market participants before or during trade execution. </a><a href="https://prime.greeks.live/area/implementation-shortfall/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Intricate metallic mechanisms portray a proprietary matching engine or execution management system. Its robust structure enables algorithmic trading and high-fidelity execution for institutional digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-market-microstructure.jpg)

## Implementation Shortfall

Meaning ▴ Implementation Shortfall is a critical transaction cost metric in crypto investing, representing the difference between the theoretical price at which an investment decision was made and the actual average price achieved for the executed trade. </a><a href="https://prime.greeks.live/area/arrival-price/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Central polished disc, with contrasting segments, represents Institutional Digital Asset Derivatives Prime RFQ core. A textured rod signifies RFQ Protocol High-Fidelity Execution and Low Latency Market Microstructure data flow to the Quantitative Analysis Engine for Price Discovery](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-core-system-high-fidelity.jpg)

## Arrival Price

Meaning ▴ Arrival Price denotes the market price of a cryptocurrency or crypto derivative at the precise moment an institutional trading order is initiated within a firm's order management system, serving as a critical benchmark for evaluating subsequent trade execution performance. </a><a href="https://prime.greeks.live/area/spread-capture-analysis/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Robust institutional Prime RFQ core connects to a precise RFQ protocol engine. Multi-leg spread execution blades propel a digital asset derivative target, optimizing price discovery](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-rfq-proto-insti-digital-asset-derivs-hi-fi-exec-capital-effi-risk-mgmt.jpg)

## Spread Capture Analysis

Meaning ▴ Spread Capture Analysis, in the context of crypto market making and smart trading, is the systematic evaluation of the effectiveness of trading strategies in monetizing the bid-ask spread. </a><a href="https://prime.greeks.live/area/execution-price/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Sleek, dark components with glowing teal accents cross, symbolizing high-fidelity execution pathways for institutional digital asset derivatives. A luminous, data-rich sphere in the background represents aggregated liquidity pools and global market microstructure, enabling precise RFQ protocols and robust price discovery within a Principal's operational framework](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-high-fidelity-execution-layer.jpg)

## Execution Price

Meaning ▴ Execution Price refers to the definitive price at which a trade, whether involving a spot cryptocurrency or a derivative contract, is actually completed and settled on a trading venue. </a><a href="https://prime.greeks.live/area/rfq-execution/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sophisticated teal and black device with gold accents symbolizes a Principal's operational framework for institutional digital asset derivatives. It represents a high-fidelity execution engine, integrating RFQ protocols for atomic settlement](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-protocol-core-engine-for-best-execution.jpg)

## Rfq Execution

Meaning ▴ RFQ Execution, within the specialized domain of institutional crypto options trading and smart trading, refers to the precise process of successfully completing a Request for Quote (RFQ) transaction, where an initiator receives, evaluates, and accepts a firm, executable price from a liquidity provider. </a><a href="https://prime.greeks.live/area/spread-capture/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A dark, circular metallic platform features a central, polished spherical hub, bisected by a taut green band. This embodies a robust Prime RFQ for institutional digital asset derivatives, enabling high-fidelity execution via RFQ protocols, optimizing market microstructure for best execution, and mitigating counterparty risk through atomic settlement](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-optimizing-high-fidelity-execution-across-diverse-market-microstructures.jpg)

## Spread Capture

Meaning ▴ Spread Capture, a fundamental objective in crypto market making and institutional trading, refers to the strategic process of profiting from the bid-ask spread ▴ the differential between the highest price a buyer is willing to pay (the bid) and the lowest price a seller is willing to accept (the ask) for a digital asset. </a><a href="https://prime.greeks.live/area/transaction-cost/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, multi-layered institutional crypto derivatives platform interface, featuring a transparent intelligence layer for real-time market microstructure analysis. Buttons signify RFQ protocol initiation for block trades, enabling high-fidelity execution and optimal price discovery within a robust Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/institutional-crypto-derivatives-os-precision-execution-rfq-protocol-intelligence-layer.jpg)

## Transaction Cost

Meaning ▴ Transaction Cost, in the context of crypto investing and trading, represents the aggregate expenses incurred when executing a trade, encompassing both explicit fees and implicit market-related costs. </a><a href="https://prime.greeks.live/area/tca-system/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, spherical, off-white device with a glowing cyan lens symbolizes an Institutional Grade Prime RFQ Intelligence Layer. It drives High-Fidelity Execution of Digital Asset Derivatives via RFQ Protocols, enabling Optimal Liquidity Aggregation and Price Discovery for Market Microstructure Analysis](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-optimal-execution-1.jpg)

## Tca System

Meaning ▴ A TCA System, or Transaction Cost Analysis system, in the context of institutional crypto trading, is an advanced analytical platform specifically engineered to measure, evaluate, and report on all explicit and implicit costs incurred during the execution of digital asset trades. </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 central, intricate blue mechanism, evocative of an Execution Management System EMS or Prime RFQ, embodies algorithmic trading. Transparent rings signify dynamic liquidity pools and price discovery for institutional digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/precision-engineered-institutional-digital-asset-derivatives-framework-driving-high-fidelity-rfq-execution-and-optimized-market-microstructure-for-capital-efficiency.jpg)

## Execution Management System

Meaning ▴ An Execution Management System (EMS) in the context of crypto trading is a sophisticated software platform designed to optimize the routing and execution of institutional orders for digital assets and derivatives, including crypto options, across multiple liquidity venues. </a><a href="https://prime.greeks.live/area/dealer-performance/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Precision metallic mechanism with a central translucent sphere, embodying institutional RFQ protocols for digital asset derivatives. This core represents high-fidelity execution within a Prime RFQ, optimizing price discovery and liquidity aggregation for block trades, ensuring capital efficiency and atomic settlement](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-prime-os-execution-hub.jpg)

## Dealer Performance

Meaning ▴ Dealer performance quantifies the efficacy, responsiveness, and competitiveness of liquidity provision and trade execution services offered by market makers or institutional dealers within financial markets, particularly in Request for Quote (RFQ) environments. </a><a href="https://prime.greeks.live/area/cost-analysis/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A beige, triangular device with a dark, reflective display and dual front apertures. This specialized hardware facilitates institutional RFQ protocols for digital asset derivatives, enabling high-fidelity execution, market microstructure analysis, optimal price discovery, capital efficiency, block trades, and portfolio margin](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-terminal-for-high-fidelity-execution-and-precise-market-microstructure-analysis.jpg)

## Cost Analysis

Meaning ▴ Cost Analysis is the systematic process of identifying, quantifying, and evaluating all explicit and implicit expenses associated with trading activities, particularly within the complex and often fragmented crypto investing landscape. </a>

**Tags:** [Transaction Cost](https://options.greeks.live/area/transaction-cost/), [TCA Model](https://options.greeks.live/area/tca-model/), [Price Discovery](https://options.greeks.live/area/price-discovery/), [Arrival Price](https://options.greeks.live/area/arrival-price/), [Quantitative Modeling](https://options.greeks.live/area/quantitative-modeling/), [Execution Management System](https://options.greeks.live/area/execution-management-system/)	

## Discover More

- 
### [How Does Market Fragmentation Affect TCA in FX and Fixed Income?](https://options.greeks.live/question/how-does-market-fragmentation-affect-tca-in-fx-and-fixed-income/)
![Central, interlocked mechanical structures symbolize a sophisticated Crypto Derivatives OS driving institutional RFQ protocol. Surrounding blades represent diverse liquidity pools and multi-leg spread components. This visualizes high-fidelity execution, precise price discovery, and algorithmic trading within complex market microstructure, optimizing capital efficiency.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-architecture-optimizing-high-fidelity-execution-across-diverse-liquidity-pools.jpg)

Market fragmentation complicates TCA by replacing a single benchmark price with a distributed constellation of liquidity pools.

- 
### [How Can Transaction Cost Analysis Quantify the Impact of Information Leakage?](https://options.greeks.live/question/how-can-transaction-cost-analysis-quantify-the-impact-of-information-leakage/)
![A precision-engineered apparatus with a luminous green beam, symbolizing a Prime RFQ for institutional digital asset derivatives. It facilitates high-fidelity execution via optimized RFQ protocols, ensuring precise price discovery and mitigating counterparty risk within market microstructure.](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-rfq-protocol-high-fidelity-digital-asset-derivatives-execution.jpg)

Transaction Cost Analysis quantifies information leakage by isolating pre-execution price decay against decision-time benchmarks.

- 
### [What Are the Primary Differences in Measuring Transaction Costs between RFQ and CLOB Markets?](https://options.greeks.live/question/what-are-the-primary-differences-in-measuring-transaction-costs-between-rfq-and-clob-markets/)
![Diagonal composition of sleek metallic infrastructure with a bright green data stream alongside a multi-toned teal geometric block. This visualizes High-Fidelity Execution for Digital Asset Derivatives, facilitating RFQ Price Discovery within deep Liquidity Pools, critical for institutional Block Trades and Multi-Leg Spreads on a Prime RFQ.](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-digital-asset-derivatives-rfq-execution-optimization-leveraging-proprietary-institutional-prime-os-for-optimal-price-discovery-and-latency-reduction.jpg)

Measuring transaction costs differs fundamentally: CLOBs require quantifying impact against a public price stream; RFQs demand evaluating dealer quote quality against a private, theoretical benchmark.

- 
### [How Can Transaction Cost Analysis Differentiate between Market Impact and Information Leakage?](https://options.greeks.live/question/how-can-transaction-cost-analysis-differentiate-between-market-impact-and-information-leakage/)
![A sophisticated modular component of a Crypto Derivatives OS, featuring an intelligence layer for real-time market microstructure analysis. Its precision engineering facilitates high-fidelity execution of digital asset derivatives via RFQ protocols, ensuring optimal price discovery and capital efficiency for institutional participants.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-module.jpg)

TCA differentiates cost sources by mapping slippage against a timeline of benchmarks to isolate pre-execution drift from an order's direct pressure.

- 
### [What Are the Key Differences in Applying TCA to RFQ Workflows versus Lit Markets?](https://options.greeks.live/question/what-are-the-key-differences-in-applying-tca-to-rfq-workflows-versus-lit-markets/)
![Sharp, layered planes, one deep blue, one light, intersect a luminous sphere and a vast, curved teal surface. This abstractly represents high-fidelity algorithmic trading and multi-leg spread execution. The sphere symbolizes a prime brokerage liquidity pool, interacting with latent liquidity for optimal RFQ protocol price discovery within complex market microstructure.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-system-microstructure.jpg)

TCA for lit markets measures execution against a public benchmark; for RFQ, it evaluates negotiated outcomes against a constructed one.

- 
### [How Can Transaction Cost Analysis Be Adapted to Specifically Isolate and Quantify Information Leakage?](https://options.greeks.live/question/how-can-transaction-cost-analysis-be-adapted-to-specifically-isolate-and-quantify-information-leakage/)
![Abstract metallic components, resembling an advanced Prime RFQ mechanism, precisely frame a teal sphere, symbolizing a liquidity pool. This depicts the market microstructure supporting RFQ protocols for high-fidelity execution of digital asset derivatives, ensuring capital efficiency in algorithmic trading.](https://options.greeks.live/wp-content/uploads/2025/07/precision-engineered-institutional-digital-asset-derivatives-prime-os-architecture-driving-rfq-protocol-execution-and-capital-efficiency-optimization.jpg)

Adapting TCA to isolate information leakage requires decomposing market impact into its mechanical and informational components through multi-factor attribution.

- 
### [How Can Transaction Cost Analysis Be Used to Quantify the Benefits of Using an RFQ Protocol?](https://options.greeks.live/question/how-can-transaction-cost-analysis-be-used-to-quantify-the-benefits-of-using-an-rfq-protocol/)
![Parallel marked channels depict granular market microstructure across diverse institutional liquidity pools. A glowing cyan ring highlights an active Request for Quote RFQ for precise price discovery. A metallic probe signifies an algorithmic trading engine performing high-fidelity execution and atomic settlement.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-high-fidelity-execution-3.jpg)

TCA quantifies an RFQ protocol's value by measuring price improvement and information leakage against precise market benchmarks.

- 
### [How Do You Audit Your Trades to Ensure Best Execution Was Achieved?](https://options.greeks.live/question/how-do-you-audit-your-trades-to-ensure-best-execution-was-achieved/)
![Two sleek, abstract forms, one dark, one light, are precisely stacked, symbolizing a multi-layered institutional trading system. This embodies sophisticated RFQ protocols, high-fidelity execution, and optimal liquidity aggregation for digital asset derivatives, ensuring robust market microstructure and capital efficiency within a Prime RFQ.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-grade-digital-asset-derivatives-platform-architecture-high-fidelity-execution-protocols-and-liquidity-aggregation.jpg)

A Best Execution audit is the systematic, data-driven validation that a firm's trading architecture delivered the optimal client outcome.

- 
### [How Can Transaction Cost Analysis Be Used to Evaluate the Effectiveness of a Multi-Dealer Platform?](https://options.greeks.live/question/how-can-transaction-cost-analysis-be-used-to-evaluate-the-effectiveness-of-a-multi-dealer-platform/)
![A diagonal composition contrasts a blue intelligence layer, symbolizing market microstructure and volatility surface, with a metallic, precision-engineered execution engine. This depicts high-fidelity execution for institutional digital asset derivatives via RFQ protocols, ensuring atomic settlement.](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-rfq-for-institutional-digital-asset-derivatives-execution.jpg)

TCA quantifies a multi-dealer platform's effectiveness by measuring the value decay between investment decision and final execution.

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        "caption": "This abstract visualization depicts a sophisticated Crypto Derivatives OS facilitating institutional-grade trading. Intersecting structures symbolize complex multi-leg spread strategies and dark liquidity pathways within market microstructure. A central execution management system EMS node ensures high-fidelity execution of RFQ inquiries, leveraging pre-trade analytics for optimal price discovery. Spheres represent dynamic implied volatility and atomic settlement points, emphasizing capital efficiency and mitigating counterparty risk in a fragmented liquidity pool environment."
    },
    "keywords": [
        "Algorithmic Trading",
        "Arrival Price",
        "Best Execution",
        "Bilateral Price Discovery",
        "Cost Analysis",
        "Dealer Performance",
        "Dealer Performance Scorecard",
        "Execution Management System",
        "Execution Price",
        "Execution Quality",
        "Implementation Shortfall",
        "Information Leakage",
        "Market Microstructure",
        "Off-Book Liquidity",
        "Price Discovery",
        "Quantitative Modeling",
        "RFQ Execution",
        "Spread Capture",
        "Spread Capture Analysis",
        "TCA Model",
        "TCA System",
        "Transaction Cost",
        "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 Defines RFQ Execution Quality?",
            "acceptedAnswer": {
                "@type": "Answer",
                "text": "The quality of a quote solicitation execution extends far beyond the final price. It is a composite measure reflecting the efficiency of the entire communication and negotiation process. A superior execution is one that secures a competitive price while minimizing information leakage and operational friction. The system must therefore measure the decay in market conditions from the moment the decision to trade is made, attributing it correctly to either general market drift or the specific impact of the inquiry. This involves capturing precise timestamps at every stage of the RFQ lifecycle, from the moment the request is sent to the moment a specific quote is accepted. This temporal analysis forms the backbone of the evaluation, allowing for the isolation of delays and the quantification of their cost."
            }
        },
        {
            "@type": "Question",
            "name": "Beyond Price How To Measure Information Leakage?",
            "acceptedAnswer": {
                "@type": "Answer",
                "text": "A sophisticated TCA strategy must also quantify factors beyond the execution price, chief among them being information leakage. Information leakage occurs when the act of sending an RFQ signals trading intent to the market, causing prices to move adversely before the trade is executed. Measuring this is critical for evaluating the discretion of the protocol and the behavior of the counterparties."
            }
        }
    ]
}
```


---

**Original URL:** https://options.greeks.live/question/how-do-transaction-cost-analysis-models-evaluate-the-effectiveness-of-an-rfq-execution/
