# How Does Matched Principal Trading on an OTF Affect Best Execution Duties? ▴ Question

**Published:** 2025-08-07
**Categories:** Question

---

![The image displays a sleek, intersecting mechanism atop a foundational blue sphere. It represents the intricate market microstructure of institutional digital asset derivatives trading, facilitating RFQ protocols for block trades](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-prime-os-rfq-execution.jpg)

![An intricate, transparent cylindrical system depicts a sophisticated RFQ protocol for digital asset derivatives. Internal glowing elements signify high-fidelity execution and algorithmic trading](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-protocol-architecture.jpg)

## Concept

![Abstract image showing interlocking metallic and translucent blue components, suggestive of a sophisticated RFQ engine. This depicts the precision of an institutional-grade Crypto Derivatives OS, facilitating high-fidelity execution and optimal price discovery within complex market microstructure for multi-leg spreads and atomic settlement](https://options.greeks.live/wp-content/uploads/2025/07/precision-engineered-market-microstructure-for-institutional-digital-asset-derivatives-rfq.jpg)

## The Intersection of Discretion and Obligation

The operational mechanics of an [Organised Trading Facility](https://prime.greeks.live/area/organised-trading-facility/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (OTF) introduce a specific dynamic into the execution of financial instruments, particularly when [matched principal trading](https://prime.greeks.live/area/matched-principal-trading/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) is employed. This trading model, permitted on OTFs for non-equity instruments subject to client consent, positions the OTF operator at the center of a complex interplay between facilitating trades and upholding the stringent requirements of best execution. An OTF is a multilateral system where multiple third-party buying and selling interests in instruments like bonds, structured finance products, and derivatives can interact.

Unlike more rigid venues such as Regulated Markets (RMs) or Multilateral Trading Facilities (MTFs), the OTF operator possesses a degree of discretion in how orders are executed. This discretion is the defining characteristic of an OTF and the primary source of its unique impact on [best execution](https://prime.greeks.live/area/best-execution/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) duties.

[Matched principal](https://prime.greeks.live/question/why-are-cleared-derivatives-excluded-from-matched-principal-trading-on-an-otf/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) trading within this environment is a process where the OTF operator momentarily steps into the trade, becoming the counterparty to both the buyer and the seller in two back-to-back transactions. The operator does not commit its own capital in a speculative sense; instead, it acts as a conduit, facilitating the transaction by taking on the position for a brief period. This model is explicitly forbidden on RMs and MTFs but is a core feature of the OTF framework for certain asset classes.

The critical point is that even while acting as a principal, the operator’s actions are governed by the overarching duty to achieve the best possible result for its clients. This creates a nuanced scenario where the firm’s role as a facilitator must be carefully balanced with its regulatory obligations, a challenge that is central to the OTF’s design and purpose.

> The use of matched principal trading on an OTF introduces a layer of controlled discretion, fundamentally altering the traditional principal-agent relationship and demanding a more sophisticated approach to demonstrating best execution.

![The abstract image features angular, parallel metallic and colored planes, suggesting structured market microstructure for digital asset derivatives. A spherical element represents a block trade or RFQ protocol inquiry, reflecting dynamic implied volatility and price discovery within a dark pool](https://options.greeks.live/wp-content/uploads/2025/07/optimized-institutional-digital-asset-derivatives-rfq-protocol-framework-ensuring-principal-best-execution-and-latent-liquidity-capture.jpg)

## Defining the Boundaries of Best Execution

The concept of best execution extends far beyond simply securing the best price for a client’s order. Under the Markets in Financial Instruments Directive II ([MiFID II](https://prime.greeks.live/area/mifid-ii/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite)), investment firms are required to take all sufficient steps to obtain the best possible result for their clients, considering a range of execution factors. These factors include not only price but also costs, speed, likelihood of execution and settlement, size, nature of the order, and any other relevant considerations.

The relative importance of these factors can vary depending on the client’s status (retail or professional), the specific instructions provided by the client, the characteristics of the financial instrument, and the nature of the execution venues to which the order can be directed. This comprehensive framework sets a high bar for firms, requiring them to establish and adhere to a detailed [execution policy](https://prime.greeks.live/area/execution-policy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) that outlines how they will meet these obligations.

When an OTF operator engages in matched [principal trading](https://prime.greeks.live/area/principal-trading/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), it must demonstrate that this method of execution is consistent with its best execution policy and that it has been chosen to achieve the optimal outcome for the client. The discretionary nature of the OTF means that the operator has choices to make, such as when to place or retract an order, or when to match potential orders within the system. Each of these decisions must be justifiable in the context of the best execution factors.

The firm must be able to evidence, both to its clients and to regulators, that the use of matched principal trading on its venue led to a result that was at least as good as, if not better than, what could have been achieved through other means. This places a significant evidentiary burden on the operator, requiring robust systems for monitoring, recording, and analyzing [execution quality](https://prime.greeks.live/area/execution-quality/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite).

![A precisely engineered multi-component structure, split to reveal its granular core, symbolizes the complex market microstructure of institutional digital asset derivatives. This visual metaphor represents the unbundling of multi-leg spreads, facilitating transparent price discovery and high-fidelity execution via RFQ protocols within a Principal's operational framework](https://options.greeks.live/wp-content/uploads/2025/07/institutional-grade-digital-asset-derivatives-rfq-protocols-revealing-market-microstructure-for-high-fidelity-execution-and-atomic-settlement-within-principals-operational-framework.jpg)

![A robust, multi-layered institutional Prime RFQ, depicted by the sphere, extends a precise platform for private quotation of digital asset derivatives. A reflective sphere symbolizes high-fidelity execution of a block trade, driven by algorithmic trading for optimal liquidity aggregation within market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/robust-institutional-platform-for-digital-asset-derivatives-rfq-protocols-and-optimized-liquidity-aggregation.jpg)

## Strategy

![An abstract geometric composition visualizes a sophisticated market microstructure for institutional digital asset derivatives. A central liquidity aggregation hub facilitates RFQ protocols and high-fidelity execution of multi-leg spreads](https://options.greeks.live/wp-content/uploads/2025/07/optimized-rfq-execution-framework-for-digital-asset-derivatives-trading.jpg)

## Leveraging Discretion for Enhanced Liquidity

The strategic rationale for employing matched principal trading on an OTF is rooted in the pursuit of liquidity, particularly for less liquid financial instruments like certain bonds and bespoke derivatives. In markets where continuous order matching is impractical due to infrequent trading interest, the ability of the OTF operator to step in as a matched principal can be instrumental in completing a trade that might otherwise fail. This discretionary intervention allows the operator to bridge temporary gaps between buyers and sellers, effectively creating liquidity where it might be sparse.

The client’s consent to this process is a prerequisite, indicating an understanding that this model may be the most effective way to execute their order. The strategic decision to use this model is therefore a calculated one, based on the assessment that the benefits of securing an execution outweigh the potential complexities introduced by the operator’s dual role.

A firm’s execution policy must clearly articulate the circumstances under which matched principal trading will be used. This involves defining the types of instruments and market conditions that would warrant such an approach. The policy should also detail how the firm will manage the potential conflicts of interest that can arise when the operator is also the counterparty to the trade. For instance, the firm must have procedures in place to ensure that the price at which the [matched principal trade](https://prime.greeks.live/question/why-are-cleared-derivatives-excluded-from-matched-principal-trading-on-an-otf/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) is executed is fair and in line with the best execution requirements.

This might involve referencing external pricing sources, obtaining multiple quotes, or using other price discovery mechanisms to validate the execution price. The strategy is not simply to execute the trade, but to do so in a way that is transparent, fair, and demonstrably in the client’s best interest.

![A metallic disc intersected by a dark bar, over a teal circuit board. This visualizes Institutional Liquidity Pool access via RFQ Protocol, enabling Block Trade Execution of Digital Asset Options with High-Fidelity Execution](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-principal-operational-framework-market-microstructure-high-fidelity-execution.jpg)

## Comparative Analysis of Execution Venues

To fully appreciate the strategic positioning of OTFs, it is useful to compare their characteristics with other trading venues. The following table provides a high-level comparison of RMs, MTFs, and OTFs, highlighting the key differences that inform an investment firm’s choice of execution venue.

| Feature | Regulated Market (RM) | Multilateral Trading Facility (MTF) | Organised Trading Facility (OTF) |
| --- | --- | --- | --- |

![A transparent blue sphere, symbolizing precise Price Discovery and Implied Volatility, is central to a layered Principal's Operational Framework. This structure facilitates High-Fidelity Execution and RFQ Protocol processing across diverse Aggregated Liquidity Pools, revealing the intricate Market Microstructure of Institutional Digital Asset Derivatives](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-derivatives-rfq-execution-system-microstructure-principal-framework.jpg)

## Conflict Management and Transparency

The strategic deployment of matched principal trading on an OTF necessitates a robust framework for managing conflicts of interest. Since the OTF operator is momentarily on both sides of the trade, there is a potential for the operator to favor its own interests over those of its clients. To mitigate this risk, MiFID II imposes strict rules on OTF operators. For example, an OTF cannot be operated within the same legal entity as a [Systematic Internaliser](https://prime.greeks.live/area/systematic-internaliser/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (SI), which is a firm that deals on its own account by executing client orders outside a trading venue.

This separation is designed to prevent the OTF from becoming a vehicle for the firm’s proprietary trading activities. Furthermore, the operator must have arrangements in place to prevent the exchange of information between the OTF and other parts of the firm that could give rise to conflicts of interest.

Transparency is another key element of the strategic framework. The pre-trade transparency requirements for OTFs, while more flexible than those for RMs and MTFs, still mandate a certain level of disclosure. This helps to ensure that clients are aware of the pricing and liquidity available on the venue. Post-trade transparency is also crucial, as it allows clients and regulators to assess the quality of execution.

Firms operating OTFs are required to publish quarterly reports on execution quality, providing detailed information on price, costs, speed, and likelihood of execution. This data is essential for clients to evaluate whether the OTF is consistently delivering on its best execution promises and for the firm to refine its execution strategies over time.

![A chrome cross-shaped central processing unit rests on a textured surface, symbolizing a Principal's institutional grade execution engine. It integrates multi-leg options strategies and RFQ protocols, leveraging real-time order book dynamics for optimal price discovery in digital asset derivatives, minimizing slippage and maximizing capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/principals-high-fidelity-rfq-execution-digital-asset-derivatives-hub.jpg)

![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)

## Execution

![Precision-engineered system components in beige, teal, and metallic converge at a vibrant blue interface. This symbolizes a critical RFQ protocol junction within an institutional Prime RFQ, facilitating high-fidelity execution and atomic settlement for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/principal-rfq-connectivity-layer-for-digital-asset-derivatives-execution.jpg)

## The Operational Workflow of a Matched Principal Trade

The execution of a matched [principal trade](https://prime.greeks.live/area/principal-trade/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) on an OTF follows a specific operational workflow that is designed to accommodate the discretionary nature of the venue while adhering to the principles of best execution. The process begins with a client submitting an order to the OTF. The OTF operator, using its discretion, will then attempt to find a matching counterparty for the order. This may involve interacting with other clients on the OTF, or it may involve the operator stepping in as a matched principal.

If the operator chooses the latter, it will simultaneously enter into two offsetting trades ▴ one with the buying client and one with the selling client. These trades are executed at the same price, with the operator earning a pre-disclosed commission or fee for its role in facilitating the transaction.

The entire process is underpinned by a sophisticated technological infrastructure. The OTF’s trading system must be capable of handling the complexities of discretionary order matching, including the ability to manage different order types and to apply the operator’s execution logic. The system must also have robust pre-trade risk controls to ensure that the operator is not exposed to undue market risk during the brief period it holds the position.

Furthermore, the system must capture all relevant data points for each trade, including timestamps, prices, and execution venues, to facilitate post-trade reporting and analysis. This data is critical for demonstrating compliance with [best execution obligations](https://prime.greeks.live/area/best-execution-obligations/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) and for providing clients with the transparency they need to assess the quality of their executions.

![Sleek metallic structures with glowing apertures symbolize institutional RFQ protocols. These represent high-fidelity execution and price discovery across aggregated liquidity pools](https://options.greeks.live/wp-content/uploads/2025/07/precision-digital-asset-derivatives-trading-systems-optimizing-rfq-protocols-for-institutional-block-trade-execution.jpg)

## Key Steps in the Matched Principal Execution Process

The following list outlines the key steps involved in executing a matched principal trade on an OTF:

- **Order Receipt and Assessment** ▴ The OTF operator receives a client order and assesses it against the current market conditions and the available liquidity on the venue.

- **Discretionary Matching** ▴ The operator exercises its discretion to determine the best way to execute the order. This may involve placing the order on the OTF’s order book, seeking out a counterparty through a request-for-quote (RFQ) process, or deciding to act as a matched principal.

- **Client Consent** ▴ If the operator decides to act as a matched principal, it must ensure that it has obtained the client’s prior consent to do so. This consent is typically obtained as part of the client onboarding process.

- **Execution and Confirmation** ▴ The operator executes the two back-to-back trades simultaneously, confirming the execution details to both clients.

- **Post-Trade Reporting** ▴ The operator ensures that the trade is reported to the relevant regulatory authorities in a timely and accurate manner. This includes providing all the necessary details to comply with MiFID II’s transaction reporting requirements.

![A dark blue, precision-engineered blade-like instrument, representing a digital asset derivative or multi-leg spread, rests on a light foundational block, symbolizing a private quotation or block trade. This structure intersects robust teal market infrastructure rails, indicating RFQ protocol execution within a Prime RFQ for high-fidelity execution and liquidity aggregation in institutional trading](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-framework-multi-leg-spreads-best-execution-capital-efficiency.jpg)

## Evidencing Best Execution in a Discretionary Environment

One of the most significant challenges for an OTF operator is evidencing that it has met its best execution obligations in a discretionary environment. Unlike non-discretionary venues where execution is determined by a set of predefined rules, the operator of an OTF must be able to justify the choices it has made. This requires a comprehensive approach to data collection and analysis. The operator must be able to demonstrate that its discretionary decisions were made with the client’s best interests in mind and that they resulted in a superior outcome compared to the available alternatives.

> In the context of an OTF, best execution is not a static benchmark but a dynamic process of optimization, requiring continuous monitoring and justification of discretionary decisions.

To this end, OTF operators typically employ a range of tools and techniques to monitor and analyze execution quality. This includes [transaction cost analysis](https://prime.greeks.live/area/transaction-cost-analysis/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (TCA), which involves comparing the execution price of a trade to a variety of benchmarks to assess its quality. The operator may also use smart order routing (SOR) technology to scan multiple liquidity sources and identify the best available price for a given order.

The data generated by these tools is then used to create the quarterly execution quality reports that are required under MiFID II. These reports provide clients with a detailed breakdown of the OTF’s performance across a range of metrics, allowing them to make informed decisions about where to direct their order flow.

![A sharp, dark, precision-engineered element, indicative of a targeted RFQ protocol for institutional digital asset derivatives, traverses a secure liquidity aggregation conduit. This interaction occurs within a robust market microstructure platform, symbolizing high-fidelity execution and atomic settlement under a Principal's operational framework for best execution](https://options.greeks.live/wp-content/uploads/2025/07/principal-grade-digital-asset-derivatives-rfq-protocol-execution-engine.jpg)

## Execution Quality Metrics for OTFs

The following table provides an overview of the key execution quality metrics that OTF operators must monitor and report on, as per the requirements of MiFID II.

| Metric | Description | Importance for Best Execution |
| --- | --- | --- |

![Modular plates and silver beams represent a Prime RFQ for digital asset derivatives. This principal's operational framework optimizes RFQ protocol for block trade high-fidelity execution, managing market microstructure and liquidity pools](https://options.greeks.live/wp-content/uploads/2025/08/digital-asset-derivatives-rfq-protocols-principal-execution-layer.jpg)

## References

- Bovill. “Guide for drafting/review of Execution Policy under MiFID II.” 2018.

- Emissions-EUETS.com. “Matched principal trading (MiFID definitions).” Accessed August 7, 2025.

- Financial Markets Law Committee. “MiFID II ▴ Best Execution.” 2016.

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

- ESMA. “MiFID II and MiFIR investor protection and intermediaries Q&A.” 2021.

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

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

![Metallic hub with radiating arms divides distinct quadrants. This abstractly depicts a Principal's operational framework for high-fidelity execution of institutional digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-derivatives-rfq-execution-prime-os-market-microstructure.jpg)

## Reflection

![A sleek, multi-faceted plane represents a Principal's operational framework and Execution Management System. A central glossy black sphere signifies a block trade digital asset derivative, executed with atomic settlement via an RFQ protocol's private quotation](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-derivatives-rfq-principal-os-high-fidelity-execution.jpg)

## A System of Integrated Intelligence

The decision to utilize an OTF and the matched principal trading model is not merely a tactical choice about where to execute a single order. It represents a deeper, strategic decision about the type of operational framework a firm wishes to build. The complexities inherent in this model, from managing conflicts of interest to evidencing best execution in a discretionary environment, demand a high degree of sophistication in a firm’s systems, processes, and personnel.

The ability to navigate these complexities effectively is what separates a truly advanced trading operation from one that is simply following a set of prescribed rules. It requires a shift in mindset, from viewing best execution as a compliance burden to seeing it as an opportunity to create a tangible competitive advantage.

The knowledge gained from understanding the mechanics of matched principal trading on an OTF should be seen as a component of a larger system of intelligence. This system encompasses not only a deep understanding of [market microstructure](https://prime.greeks.live/area/market-microstructure/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) and regulatory requirements but also a keen awareness of the firm’s own capabilities and limitations. It is about building an operational framework that is not only compliant but also agile, efficient, and aligned with the firm’s strategic objectives.

The ultimate goal is to create a trading ecosystem where every decision, from the choice of execution venue to the application of a specific trading algorithm, is informed by a holistic understanding of the market and the firm’s place within it. This is the path to achieving a sustainable, long-term edge in an increasingly competitive and complex financial landscape.

![Metallic, reflective components depict high-fidelity execution within market microstructure. A central circular element symbolizes an institutional digital asset derivative, like a Bitcoin option, processed via RFQ protocol](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-high-fidelity-execution.jpg)

## Glossary

<a href="https://prime.greeks.live/area/organised-trading-facility/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![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)

## Organised Trading Facility

Meaning ▴ An Organised Trading Facility (OTF) represents a specific type of multilateral system, as defined under MiFID II, designed for the trading of non-equity instruments. </a><a href="https://prime.greeks.live/area/matched-principal-trading/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A central RFQ engine flanked by distinct liquidity pools represents a Principal's operational framework. This abstract system enables high-fidelity execution for digital asset derivatives, optimizing capital efficiency and price discovery within market microstructure for institutional trading](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-rfq-engine-optimal-execution-for-digital-asset-derivatives.jpg)

## Matched Principal Trading

Meaning ▴ Matched Principal Trading defines an execution model where an intermediary, typically a broker-dealer, simultaneously executes offsetting buy and sell orders with two distinct principals. </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 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)

## 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/why-are-cleared-derivatives-excluded-from-matched-principal-trading-on-an-otf/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Abstract geometric structure with sharp angles and translucent planes, symbolizing institutional digital asset derivatives market microstructure. The central point signifies a core RFQ protocol engine, enabling precise price discovery and liquidity aggregation for multi-leg options strategies, crucial for high-fidelity execution and capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/principals-operational-framework-optimizing-institutional-digital-asset-derivatives-rfq-protocol-execution-for-alpha-generation.jpg)

## Matched Principal

Cleared derivatives are excluded from matched principal OTF trading because the model's legal ambiguity conflicts with the CCP's required certainty. </a><a href="https://prime.greeks.live/area/mifid-ii/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Two reflective, disc-like structures, one tilted, one flat, symbolize the Market Microstructure of Digital Asset Derivatives. This metaphor encapsulates RFQ Protocols and High-Fidelity Execution within a Liquidity Pool for Price Discovery, vital for a Principal's Operational Framework ensuring Atomic Settlement](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-high-fidelity-execution-liquidity-aggregation-optimizing-market-microstructure-principal-trading-best-execution-atomic-settlement.jpg)

## Mifid Ii

Meaning ▴ MiFID II, 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/execution-policy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![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)

## Execution Policy

Meaning ▴ An Execution Policy defines a structured set of rules and computational logic governing the handling and execution of financial orders within a trading system. </a><a href="https://prime.greeks.live/area/principal-trading/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A deconstructed mechanical system with segmented components, revealing intricate gears and polished shafts, symbolizing the transparent, modular architecture of an institutional digital asset derivatives trading platform. This illustrates multi-leg spread execution, RFQ protocols, and atomic settlement processes](https://options.greeks.live/wp-content/uploads/2025/07/deconstructed-principal-trading-system-revealing-core-mechanics-of-digital-asset-derivatives-execution.jpg)

## Principal Trading

Meaning ▴ Principal Trading defines the operational paradigm where a financial entity engages in market transactions utilizing its own capital and balance sheet, rather than executing orders on behalf of clients. </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 precision-engineered blue mechanism, symbolizing a high-fidelity execution engine, emerges from a rounded, light-colored liquidity pool component, encased within a sleek teal institutional-grade shell. This represents a Principal's operational framework for digital asset derivatives, demonstrating algorithmic trading logic and smart order routing for block trades via RFQ protocols, ensuring atomic settlement](https://options.greeks.live/wp-content/uploads/2025/07/institutional-crypto-derivatives-os-core-algorithmic-execution-engine.jpg)

## Execution Quality

Meaning ▴ Execution Quality quantifies the efficacy of an order's fill, assessing how closely the achieved trade price aligns with the prevailing market price at submission, alongside consideration for speed, cost, and market impact. </a><a href="https://prime.greeks.live/question/why-are-cleared-derivatives-excluded-from-matched-principal-trading-on-an-otf/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Intersecting digital architecture with glowing conduits symbolizes Principal's operational framework. An RFQ engine ensures high-fidelity execution of Institutional Digital Asset Derivatives, facilitating block trades, multi-leg spreads](https://options.greeks.live/wp-content/uploads/2025/07/principal-digital-asset-derivatives-rfq-engine-high-fidelity-execution.jpg)

## Matched Principal Trade

Cleared derivatives are excluded from matched principal OTF trading because the model's legal ambiguity conflicts with the CCP's required certainty. </a><a href="https://prime.greeks.live/area/systematic-internaliser/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Interlocking transparent and opaque geometric planes on a dark surface. This abstract form visually articulates the intricate Market Microstructure of Institutional Digital Asset Derivatives, embodying High-Fidelity Execution through advanced RFQ protocols](https://options.greeks.live/wp-content/uploads/2025/07/geometric-abstraction-of-institutional-digital-asset-derivatives-market-microstructure-driving-high-fidelity-execution-via-principal-rfq-protocols-and-optimal-liquidity-aggregation.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/principal-trade/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Interconnected translucent rings with glowing internal mechanisms symbolize an RFQ protocol engine. This Principal's Operational Framework ensures High-Fidelity Execution and precise Price Discovery for Institutional Digital Asset Derivatives, optimizing Market Microstructure and Capital Efficiency via Atomic Settlement](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-high-fidelity-execution.jpg)

## Principal Trade

Meaning ▴ A Principal Trade signifies a transaction where a dealer or market maker executes an order by acting as a direct counterparty, leveraging their own capital and inventory. </a><a href="https://prime.greeks.live/area/best-execution-obligations/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Precision-engineered metallic tracks house a textured block with a central threaded aperture. This visualizes a core RFQ execution component within an institutional market microstructure, enabling private quotation for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-rfq-execution-framework-precision-microstructure-component.jpg)

## Best Execution Obligations

Meaning ▴ Best Execution Obligations define the regulatory and fiduciary imperative for financial intermediaries to achieve the most favorable terms reasonably available for client orders. </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 transparent, precisely engineered optical array rests upon a reflective dark surface, symbolizing high-fidelity execution within a Prime RFQ. Beige conduits represent latency-optimized data pipelines facilitating RFQ protocols for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-system-architecture.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/market-microstructure/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Two high-gloss, white cylindrical execution channels with dark, circular apertures and secure bolted flanges, representing robust institutional-grade infrastructure for digital asset derivatives. These conduits facilitate precise RFQ protocols, ensuring optimal liquidity aggregation and high-fidelity execution within a proprietary Prime RFQ environment](https://options.greeks.live/wp-content/uploads/2025/08/institutional-grade-execution-channels-enabling-private-quotation-and-optimal-liquidity-aggregation-for-high-fidelity-digital-asset-derivatives-rfq-protocols-on-prime-os.jpg)

## Market Microstructure

Meaning ▴ Market Microstructure refers to the study of the processes and rules by which securities are traded, focusing on the specific mechanisms of price discovery, order flow dynamics, and transaction costs within a trading venue. </a>

**Tags:** [Transaction Cost Analysis](https://options.greeks.live/area/transaction-cost-analysis/), [Principal Trade](https://options.greeks.live/area/principal-trade/), [Market Microstructure](https://options.greeks.live/area/market-microstructure/), [Best Execution](https://options.greeks.live/area/best-execution/), [Best Execution Obligations](https://options.greeks.live/area/best-execution-obligations/), [Organised Trading Facility](https://options.greeks.live/area/organised-trading-facility/)	

## Discover More

- 
### [Can a Buy-Side Firm Rely Solely on Systematic Internalisers and Still Fulfill Its Best Execution Obligations?](https://options.greeks.live/question/can-a-buy-side-firm-rely-solely-on-systematic-internalisers-and-still-fulfill-its-best-execution-obligations/)
![A futuristic metallic optical system, featuring a sharp, blade-like component, symbolizes an institutional-grade platform. It enables high-fidelity execution of digital asset derivatives, optimizing market microstructure via precise RFQ protocols, ensuring efficient price discovery and robust portfolio margin.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-prime-os-for-high-fidelity-rfq-execution-and-optimal-price-discovery.jpg)

A buy-side firm's reliance solely on SIs for best execution is theoretically possible but practically indefensible without a superior, continuous, and evidence-based monitoring system.

- 
### [How Should a Firm’s Order Execution Policy Specifically Address the Use of Request for Quote Systems on OTFs?](https://options.greeks.live/question/how-should-a-firms-order-execution-policy-specifically-address-the-use-of-request-for-quote-systems-on-otfs/)
![Precision system for institutional digital asset derivatives. Translucent elements denote multi-leg spread structures and RFQ protocols. Perforated bar implies co-location for latency optimization within a Principal's operational framework, ensuring high-fidelity execution and best execution.](https://options.greeks.live/wp-content/uploads/2025/07/precision-execution-infrastructure-for-institutional-digital-asset-derivatives-request-for-quote-protocol-optimization.jpg)

An Order Execution Policy must codify RFQ on OTFs as a data-driven protocol for sourcing discreet liquidity and demonstrably minimizing market impact.

- 
### [What Are the Key Differences in Best Execution Obligations for MTFs versus SIs?](https://options.greeks.live/question/what-are-the-key-differences-in-best-execution-obligations-for-mtfs-versus-sis/)
![A multi-layered device with translucent aqua dome and blue ring, on black. This represents an Institutional-Grade Prime RFQ Intelligence Layer for Digital Asset Derivatives. It enables high-fidelity execution through optimized RFQ protocols, facilitating precise price discovery and leveraging deep market microstructure analysis for latent liquidity access.](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-protocol-intelligence-layer.jpg)

Best execution obligations diverge based on venue architecture: MTFs must ensure fair market access, while SIs must prove price fairness.

- 
### [How Do Regulatory Requirements like MiFID II Influence Best Execution for Bonds?](https://options.greeks.live/question/how-do-regulatory-requirements-like-mifid-ii-influence-best-execution-for-bonds/)
![Beige and teal angular modular components precisely connect on black, symbolizing critical system integration for a Principal's operational framework. This represents seamless interoperability within a Crypto Derivatives OS, enabling high-fidelity execution, efficient price discovery, and multi-leg spread trading via RFQ protocols.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-crypto-derivatives-rfq-execution-microstructure-os-interop.jpg)

MiFID II compels firms to systematize bond execution, transforming regulatory compliance into a data-driven framework for achieving a quantifiable trading advantage.

- 
### [How Does the Best Execution Obligation for Otf Operators Impact Their Business Model?](https://options.greeks.live/question/how-does-the-best-execution-obligation-for-otf-operators-impact-their-business-model/)
![Symmetrical precision modules around a central hub represent a Principal-led RFQ protocol for institutional digital asset derivatives. This visualizes high-fidelity execution, price discovery, and block trade aggregation within a robust market microstructure, ensuring atomic settlement and capital efficiency via a Prime RFQ.](https://options.greeks.live/wp-content/uploads/2025/07/principal-led-digital-asset-rfq-execution-system-microstructure.jpg)

The best execution obligation transforms an OTF's business model into a fiduciary service, architected around auditable, data-driven discretion.

- 
### [To What Extent Must a Firm’s Best Execution Committee Be Involved in the SI Vs Lit Market Decision?](https://options.greeks.live/question/to-what-extent-must-a-firms-best-execution-committee-be-involved-in-the-si-vs-lit-market-decision/)
![A transparent, angular teal object with an embedded dark circular lens rests on a light surface. This visualizes an institutional-grade RFQ engine, enabling high-fidelity execution and precise price discovery for digital asset derivatives. It optimizes capital efficiency, manages counterparty risk, supports multi-leg spread strategies, and provides deep market microstructure insights within a Prime RFQ framework.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-rfq-engine-high-fidelity-execution.jpg)

The Best Execution Committee's involvement in the SI vs. lit decision must be comprehensive, architecting and validating the data-driven framework that governs all venue selection.

- 
### [How Does MiFID II Specifically Define Best Execution for Institutional Clients?](https://options.greeks.live/question/how-does-mifid-ii-specifically-define-best-execution-for-institutional-clients/)
![A prominent domed optic with a teal-blue ring and gold bezel. This visual metaphor represents an institutional digital asset derivatives RFQ interface, providing high-fidelity execution for price discovery within market microstructure. It's a critical Prime RFQ component enabling capital efficiency and atomic settlement.](https://options.greeks.live/wp-content/uploads/2025/07/precision-optic-interface-for-institutional-digital-asset-derivatives-rfq-protocol-execution-and-high-fidelity-price-discovery.jpg)

MiFID II defines best execution as a total-outcome obligation, requiring firms to architect an auditable process to secure the optimal result.

- 
### [What Are the Key Differences in Best Execution for an OTF versus an MTF?](https://options.greeks.live/question/what-are-the-key-differences-in-best-execution-for-an-otf-versus-an-mtf/)
![A circular mechanism with a glowing conduit and intricate internal components represents a Prime RFQ for institutional digital asset derivatives. This system facilitates high-fidelity execution via RFQ protocols, enabling price discovery and algorithmic trading within market microstructure, optimizing capital efficiency.](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-institutional-digital-asset-derivatives-rfq-protocol-core.jpg)

An OTF leverages execution discretion for illiquid assets, while an MTF uses rule-based systems for transparent, non-discretionary trading.

- 
### [How Has MiFID II Impacted the Requirement for Best Execution Policies in Institutional Trading?](https://options.greeks.live/question/how-has-mifid-ii-impacted-the-requirement-for-best-execution-policies-in-institutional-trading/)
![A dark central hub with three reflective, translucent blades extending. This represents a Principal's operational framework for digital asset derivatives, processing aggregated liquidity and multi-leg spread inquiries. The intricate core signifies high-fidelity execution and algorithmic trading for price discovery within RFQ protocols, mitigating counterparty risk.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-rfq-protocol-engine-for-high-fidelity-digital-asset-derivatives.jpg)

MiFID II systemized best execution, mandating a data-driven framework of proof over a principles-based policy.

---

## 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 Does Matched Principal Trading on an OTF Affect Best Execution Duties?",
            "item": "https://options.greeks.live/question/how-does-matched-principal-trading-on-an-otf-affect-best-execution-duties/"
        }
    ]
}
```

```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-does-matched-principal-trading-on-an-otf-affect-best-execution-duties/"
    },
    "headline": "How Does Matched Principal Trading on an OTF Affect Best Execution Duties? \u25b4 Question",
    "description": "Matched principal trading on an OTF inserts discretionary judgment into the execution chain, demanding a robust framework to prove best execution. \u25b4 Question",
    "url": "https://options.greeks.live/question/how-does-matched-principal-trading-on-an-otf-affect-best-execution-duties/",
    "datePublished": "2025-08-07T09:37:10+00:00",
    "dateModified": "2025-08-07T09:37:12+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-execution-framework-multi-leg-spreads-best-execution-capital-efficiency.jpg",
        "caption": "This abstract composition visually interprets a Request for Quote RFQ protocol for institutional digital asset derivatives. A precise dark blue element, signifying a complex multi-leg spread or atomic settlement, is strategically positioned atop a lighter block, representing a private quotation within a Principal's operational framework. This intricate setup intersects robust teal rails, depicting established market microstructure and FIX Protocol integration, underscoring the pursuit of best execution, capital efficiency, and alpha generation through advanced algorithmic trading and smart order routing across dark pools."
    },
    "keywords": [
        "Best Execution",
        "Best Execution Obligations",
        "Discretionary Execution",
        "Execution Policy",
        "Execution Quality",
        "Liquidity Sourcing",
        "Market Microstructure",
        "Matched Principal Trading",
        "MiFID II",
        "Non-Equity Instruments",
        "Organised Trading Facility",
        "Principal Trade",
        "Principal Trading",
        "Regulatory Compliance",
        "Systematic Internaliser",
        "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"
    }
}
```


---

**Original URL:** https://options.greeks.live/question/how-does-matched-principal-trading-on-an-otf-affect-best-execution-duties/
