# How Does MiFID II Change the Evidentiary Burden for Proving Best Execution? ▴ Question

**Published:** 2025-08-10
**Categories:** Question

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## Concept

The Markets in Financial Instruments Directive II (MiFID II) fundamentally recalibrated the framework for proving best execution, shifting the core obligation from a matter of process to a quantifiable, evidence-based discipline. This transformation moves beyond procedural box-ticking, demanding that [investment firms](https://prime.greeks.live/question/what-is-the-role-of-a-best-execution-committee-in-investment-management-firms/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) construct a robust, data-centric system to demonstrate that they are consistently delivering the best possible outcomes for their clients. The previous standard, which required firms to take all “reasonable steps,” has been elevated to a more stringent “all sufficient steps” requirement. This seemingly subtle change in language imposes a significantly higher evidentiary threshold, compelling firms to actively monitor, analyze, and justify their [execution decisions](https://prime.greeks.live/question/what-are-the-best-practices-for-documenting-the-decisions-of-a-best-execution-committee/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) with granular data.

![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)

## From Principles to Proof

The pre-MiFID II environment allowed for a more principles-based approach to [best execution](https://prime.greeks.live/area/best-execution/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). Firms could rely on their established [policies and procedures](https://prime.greeks.live/area/policies-and-procedures/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) as evidence of compliance. MiFID II, however, mandates a more rigorous, data-driven approach. It requires firms to not only have a best execution policy but also to be able to demonstrate, with concrete evidence, that this policy is effective in practice.

This means that the focus has shifted from simply having the right processes in place to being able to prove that those processes are consistently delivering the best possible results for clients. The directive expands the scope of best execution to a wider range of financial instruments, including [non-equity asset classes](https://prime.greeks.live/area/non-equity-asset-classes/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) like bonds, derivatives, and structured finance products, which were previously subject to less stringent requirements due to a lack of available data.

![A reflective, metallic platter with a central spindle and an integrated circuit board edge against a dark backdrop. This imagery evokes the core low-latency infrastructure for institutional digital asset derivatives, illustrating high-fidelity execution and market microstructure dynamics](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-rfq-execution-infrastructure-precision.jpg)

## The New Data Imperative

At the heart of the new [best execution framework](https://prime.greeks.live/area/best-execution-framework/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) is a data imperative. MiFID II requires firms to collect, store, and analyze a vast amount of data related to their order execution activities. This includes not only trade data from their own systems but also market data from a variety of execution venues. This data must be used to conduct a comprehensive analysis of [execution quality](https://prime.greeks.live/area/execution-quality/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), taking into account a wide range of factors, including price, costs, speed, and likelihood of execution and settlement.

The directive also introduces new reporting requirements, such as the obligation for firms to publish an annual report on their top five [execution venues](https://prime.greeks.live/question/how-should-a-best-execution-committee-quantify-and-compare-the-performance-of-different-execution-venues/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) and the quality of execution obtained. These reports must be made public, increasing transparency and allowing clients to assess the [execution performance](https://prime.greeks.live/question/how-should-a-best-execution-committee-quantify-and-compare-the-performance-of-different-execution-venues/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) of their investment firms.

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![A precision execution pathway with an intelligence layer for price discovery, processing market microstructure data. A reflective block trade sphere signifies private quotation within a dark pool](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-precision-execution.jpg)

## Strategy

The heightened [evidentiary burden](https://prime.greeks.live/area/evidentiary-burden/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) of MiFID II necessitates a strategic overhaul of how investment firms approach best execution. A reactive, compliance-focused mindset is no longer sufficient. Instead, firms must proactively embed a culture of best execution throughout their organizations, supported by a robust governance framework, advanced [data and analytics](https://prime.greeks.live/area/data-and-analytics/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) capabilities, and a sophisticated technology infrastructure.

This strategic shift requires a multi-faceted approach that encompasses not only the trading desk but also compliance, operations, and IT departments. The goal is to create a seamless, end-to-end process for monitoring, analyzing, and optimizing execution performance.

> The transition to MiFID II’s best execution regime demands a strategic pivot from procedural adherence to a culture of continuous, data-driven performance optimization.

![A glowing blue module with a metallic core and extending probe is set into a pristine white surface. This symbolizes an active institutional RFQ protocol, enabling precise price discovery and high-fidelity execution for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-rfq-protocol-driving-institutional-digital-asset-derivatives-high-fidelity-execution-precise-price-discovery-for-block-trades-and-capital-efficiency.jpg)

## A Multi-Layered Governance Framework

A successful [MiFID II](https://prime.greeks.live/area/mifid-ii/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) best execution strategy begins with a strong governance framework. This framework should clearly define the roles and responsibilities of all stakeholders, from the front-office traders to the back-office compliance and operations teams. It should also establish a clear set of policies and procedures for monitoring and reviewing execution quality.

This includes defining the criteria for selecting execution venues, the methodology for assessing execution performance, and the process for identifying and addressing any deficiencies. The framework should be regularly reviewed and updated to ensure that it remains effective in the face of changing market conditions and regulatory requirements.

![A sophisticated institutional-grade system's internal mechanics. A central metallic wheel, symbolizing an algorithmic trading engine, sits above glossy surfaces with luminous data pathways and execution triggers](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-engine-core.jpg)

## The Power of Data and Analytics

Data and analytics are the lifeblood of a successful MiFID II best execution strategy. Firms must have the ability to capture, store, and analyze a vast amount of data from a variety of sources, including their own order management systems, execution management systems, and market data providers. This data must be used to conduct a comprehensive analysis of execution quality, taking into account a wide range of factors, including price, costs, speed, and likelihood of execution and settlement.

This analysis should be used to identify trends, patterns, and anomalies in execution performance, and to identify opportunities for improvement. The use of advanced analytics, such as transaction cost analysis (TCA), can help firms to gain deeper insights into [their execution](https://prime.greeks.live/question/how-do-firms-justify-their-choice-of-execution-venue-in-a-best-execution-report/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) performance and to identify the root causes of any suboptimal outcomes.

### Table 1 ▴ Pre- vs. Post-MiFID II Best Execution Requirements

| Requirement | Pre-MiFID II (MiFID I) | Post-MiFID II |
| --- | --- | --- |
| Standard | “All reasonable steps” | “All sufficient steps” |
| Scope | Primarily equities | All asset classes, including non-equities |
| Evidentiary Burden | Focus on policies and procedures | Focus on data and evidence of effectiveness |
| Reporting | Limited public disclosure | Annual public report on top five venues and execution quality |
| Data | Limited data requirements | Extensive data collection and analysis requirements |

![A segmented, teal-hued system component with a dark blue inset, symbolizing an RFQ engine within a Prime RFQ, emerges from darkness. Illuminated by an optimized data flow, its textured surface represents market microstructure intricacies, facilitating high-fidelity execution for institutional digital asset derivatives via private quotation for multi-leg spreads](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-intelligence-layer-for-institutional-digital-asset-derivatives-rfq.jpg)

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

## Execution

The execution of a MiFID II-compliant best [execution framework](https://prime.greeks.live/question/how-can-a-trading-desk-integrate-lit-and-rfq-transaction-cost-analyses-into-a-unified-execution-quality-framework/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) requires a granular, data-driven approach that is embedded in the firm’s daily operations. This involves not only the implementation of new technologies and processes but also a cultural shift towards a more proactive and analytical approach to execution management. The following provides a step-by-step guide to building a robust and effective best execution framework that meets the demanding requirements of MiFID II.

> Effective execution of a MiFID II-compliant best execution framework hinges on the seamless integration of technology, data, and a proactive, analytical culture.

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## A Step-by-Step Guide to Compliance

- **Establish a Best Execution Committee** ▴ This committee should be responsible for overseeing the firm’s best execution arrangements and for ensuring that they are effective in practice. The committee should be composed of representatives from all relevant departments, including trading, compliance, operations, and IT. 

- **Develop a Comprehensive Best Execution Policy** ▴ This policy should clearly articulate the firm’s approach to best execution and should be tailored to the specific nature of its business. The policy should be reviewed and updated on a regular basis to ensure that it remains fit for purpose. 

- **Implement a Robust Data Management Framework** ▴ This framework should be capable of capturing, storing, and analyzing all of the data required to monitor and review execution quality. This includes not only trade data from the firm’s own systems but also market data from a variety of execution venues. 

- **Conduct Regular Monitoring and Review** ▴ The firm should regularly monitor and review its execution performance to ensure that it is consistently delivering the best possible results for its clients. This should include a comprehensive analysis of execution quality, taking into account a wide range of factors, including price, costs, speed, and likelihood of execution and settlement. 

- **Take Remedial Action When Necessary** ▴ If the firm identifies any deficiencies in its execution arrangements, it should take prompt and effective remedial action. This may include making changes to its execution policy, its choice of execution venues, or its order routing arrangements. 

![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)

## Documenting Best Execution Decisions

A key aspect of MiFID II is the requirement for firms to be able to demonstrate the fairness of their execution decisions. This means that firms must be able to provide a clear and detailed audit trail of how they have handled each client order. This includes documenting the factors that were taken into account when making the execution decision, the reasons for selecting a particular execution venue, and the steps that were taken to monitor and review the quality of the execution. The following table provides a practical example of how a firm might document its best execution decisions.

### Table 2 ▴ Best Execution Decision Log

| Order ID | Client ID | Instrument | Venue Selection Rationale | Execution Quality Analysis | Action Taken |
| --- | --- | --- | --- | --- | --- |
| 12345 | ABC Corp | Vodafone PLC | Venue chosen based on superior liquidity and lowest transaction costs. | Executed within 1% of the volume-weighted average price (VWAP). | No action required. |
| 12346 | XYZ Inc | Tesco PLC | Venue chosen based on speed of execution and high likelihood of completion. | Executed at a price slightly above the VWAP due to market volatility. | Reviewed with the client and documented the rationale. |

![Abstract bisected spheres, reflective grey and textured teal, forming an infinity, symbolize institutional digital asset derivatives. Grey represents high-fidelity execution and market microstructure teal, deep liquidity pools and volatility surface data](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-rfq-protocols-for-digital-asset-derivatives-execution.jpg)

## The Role of Technology

Technology plays a critical role in enabling firms to meet the demanding requirements of MiFID II. The vast amount of data that needs to be collected, stored, and analyzed makes it essential for firms to have a sophisticated technology infrastructure in place. This includes not only order management and execution management systems but also data analytics and reporting tools.

The use of automation can help firms to streamline their compliance processes and to reduce the administrative burden associated with MiFID II. For example, automated monitoring and alerting tools can help firms to identify potential execution quality issues in real-time, allowing them to take prompt remedial action.

![A symmetrical, high-tech digital infrastructure depicts an institutional-grade RFQ execution hub. Luminous conduits represent aggregated liquidity for digital asset derivatives, enabling high-fidelity execution and atomic settlement](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-institutional-digital-asset-derivatives-rfq-system.jpg)

## References

- Kennedy, T. (2017). Best Execution Under MiFID II. Thomson Reuters.

- Financial Conduct Authority. (2017). MiFID II Best Execution.

- Planet Compliance. (2024). In a nutshell ▴ Best Execution under MiFID II/MiFIR.

- International Capital Market Association. (2017). MiFID II Best Execution requirements for repo and SFTs ▴ The challenges and (im)practicalities.

- FinOps. (2017). MiFID II ▴ Proving Best Execution Is Data Challenge.

![Abstract geometric planes, translucent teal representing dynamic liquidity pools and implied volatility surfaces, intersect a dark bar. This signifies FIX protocol driven algorithmic trading and smart order routing](https://options.greeks.live/wp-content/uploads/2025/07/optimized-institutional-digital-asset-derivatives-rfq-liquidity-aggregation.jpg)

## Reflection

The implementation of MiFID II has undoubtedly created a more complex and demanding regulatory environment for investment firms. The heightened evidentiary burden for proving best execution has forced firms to re-evaluate their existing processes and to invest in new technologies and capabilities. This transition, while challenging, also presents an opportunity for firms to gain a deeper understanding of their execution performance and to identify new ways to add value for their clients.

By embracing a data-driven, analytical approach to best execution, firms can not only ensure compliance with the new regulations but also enhance their competitive edge in an increasingly crowded marketplace. The journey towards a more transparent and efficient financial market is an ongoing one, and MiFID II is a significant milestone on that path.

![A central translucent disk, representing a Liquidity Pool or RFQ Hub, is intersected by a precision Execution Engine bar. Its core, an Intelligence Layer, signifies dynamic Price Discovery and Algorithmic Trading logic for Digital Asset Derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-engine-visualizing-microstructure.jpg)

## Glossary

<a href="https://prime.greeks.live/question/what-are-the-best-practices-for-documenting-the-decisions-of-a-best-execution-committee/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Abstract visualization of institutional digital asset RFQ protocols. Intersecting elements symbolize high-fidelity execution slicing dark liquidity pools, facilitating precise price discovery](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-rfq-protocol-execution-intelligence-layer.jpg)

## Execution Decisions

A Best Execution Committee's documentation is the operational system for translating fiduciary duty into a defensible, data-driven, and continuously improving process. </a><a href="https://prime.greeks.live/question/what-is-the-role-of-a-best-execution-committee-in-investment-management-firms/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Precision-engineered modular components display a central control, data input panel, and numerical values on cylindrical elements. This signifies an institutional Prime RFQ for digital asset derivatives, enabling RFQ protocol aggregation, high-fidelity execution, algorithmic price discovery, and volatility surface calibration for portfolio margin](https://options.greeks.live/wp-content/uploads/2025/07/firm-fx-options-rfq-trade-system-key-microstructure-data-flow-core-engine.jpg)

## Investment Firms

The Best Execution Committee is the operational core of an investment firm's fiduciary duty, ensuring optimal trading outcomes for clients. </a><a href="https://prime.greeks.live/area/policies-and-procedures/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Internal hard drive mechanics, with a read/write head poised over a data platter, symbolize the precise, low-latency execution and high-fidelity data access vital for institutional digital asset derivatives. This embodies a Principal OS architecture supporting robust RFQ protocols, enabling atomic settlement and optimized liquidity aggregation within complex market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-precision-execution-system-microstructure.jpg)

## Policies and Procedures

Meaning ▴ Policies and Procedures represent the codified framework of an institution's operational directives and the sequential steps for their execution, designed to ensure consistent, predictable behavior within complex digital asset trading systems and to govern all aspects of risk exposure and operational integrity. </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 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](https://options.greeks.live/wp-content/uploads/2025/07/institutional-rfq-protocol-engine-for-high-fidelity-digital-asset-derivatives.jpg)

## Best Execution

Meaning ▴ Best Execution is the obligation to obtain the most favorable terms reasonably available for a client's order. </a><a href="https://prime.greeks.live/area/non-equity-asset-classes/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A precise metallic instrument, resembling an algorithmic trading probe or a multi-leg spread representation, passes through a transparent RFQ protocol gateway. This illustrates high-fidelity execution within market microstructure, facilitating price discovery for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-orchestration-of-institutional-digital-asset-rfq-execution.jpg)

## Non-Equity Asset Classes

Meaning ▴ Non-Equity Asset Classes define investment instruments whose valuation and return profiles are independent of direct ownership in corporate stock, deriving their value from diverse underlying sources. </a><a href="https://prime.greeks.live/area/best-execution-framework/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A glowing central ring, representing RFQ protocol for private quotation and aggregated inquiry, is integrated into a spherical execution engine. This system, embedded within a textured Prime RFQ conduit, signifies a secure data pipeline for institutional digital asset derivatives block trades, leveraging market microstructure for high-fidelity execution](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-derivatives-rfq-system-for-institutional-high-fidelity-execution.jpg)

## Best Execution Framework

Meaning ▴ The Best Execution Framework defines a structured methodology for achieving the most advantageous outcome for client orders, considering price, cost, speed, likelihood of execution and settlement, order size, and any other relevant considerations. </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">
![Sharp, transparent, teal structures and a golden line intersect a dark void. This symbolizes market microstructure for institutional digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-precision-execution-leveraging-granular-market-microstructure-intelligence.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/how-should-a-best-execution-committee-quantify-and-compare-the-performance-of-different-execution-venues/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Interconnected modular components with luminous teal-blue channels converge diagonally, symbolizing advanced RFQ protocols for institutional digital asset derivatives. This depicts high-fidelity execution, price discovery, and aggregated liquidity across complex market microstructure, emphasizing atomic settlement, capital efficiency, and a robust Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-microstructure-protocols.jpg)

## Execution Performance

A Best Execution Committee operationalizes a multi-factor quantitative model to govern the firm's trading system and optimize capital efficiency. </a><a href="https://prime.greeks.live/question/how-should-a-best-execution-committee-quantify-and-compare-the-performance-of-different-execution-venues/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A transparent sphere, representing a granular digital asset derivative or RFQ quote, precisely balances on a proprietary execution rail. This symbolizes high-fidelity execution within complex market microstructure, driven by rapid price discovery from an institutional-grade trading engine, optimizing capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-precision-1.jpg)

## Execution Venues

A Best Execution Committee operationalizes a multi-factor quantitative model to govern the firm's trading system and optimize capital efficiency. </a><a href="https://prime.greeks.live/area/data-and-analytics/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A central, metallic, multi-bladed mechanism, symbolizing a core execution engine or RFQ hub, emits luminous teal data streams. These streams traverse through fragmented, transparent structures, representing dynamic market microstructure, high-fidelity price discovery, and liquidity aggregation](https://options.greeks.live/wp-content/uploads/2025/07/principal-grade-digital-asset-derivatives-rfq-protocol-engine-facilitating-high-fidelity-execution-and-optimal-price-discovery-across-fragmented-market-microstructure.jpg)

## Data and Analytics

Meaning ▴ Data and Analytics, within the context of institutional digital asset derivatives, refers to the systematic collection, processing, and interpretation of structured and unstructured information to derive actionable insights and inform strategic decision-making. </a><a href="https://prime.greeks.live/area/evidentiary-burden/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sophisticated digital asset derivatives execution platform showcases its core market microstructure. A speckled surface depicts real-time market data streams](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-core-microstructure.jpg)

## Evidentiary Burden

Meaning ▴ The Evidentiary Burden, within the architecture of institutional digital asset derivatives, defines the systemic requirement for irrefutable, verifiable proof of transaction validity, asset ownership, or system state integrity. </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">
![A precision instrument probes a speckled surface, visualizing market microstructure and liquidity pool dynamics within a dark pool. This depicts RFQ protocol execution, emphasizing price discovery for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-flow.jpg)

## 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/question/how-do-firms-justify-their-choice-of-execution-venue-in-a-best-execution-report/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A modular, institutional-grade device with a central data aggregation interface and metallic spigot. This Prime RFQ represents a robust RFQ protocol engine, enabling high-fidelity execution for institutional digital asset derivatives, optimizing capital efficiency and best execution](https://options.greeks.live/wp-content/uploads/2025/08/principals-institutional-digital-asset-derivatives-prime-os-for-optimized-rfq-protocol-best-execution-system.jpg)

## Their Execution

Firms justify venue choices in best execution reports via a data-driven analysis of price, cost, speed, and likelihood of execution. </a><a href="https://prime.greeks.live/question/how-can-a-trading-desk-integrate-lit-and-rfq-transaction-cost-analyses-into-a-unified-execution-quality-framework/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![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 Framework

A unified framework translates disparate lit and RFQ execution data into a single, actionable language of cost and performance. </a>

**Tags:** [Order Management Systems (OMS)](https://options.greeks.live/area/order-management-systems-oms/), [Evidentiary Burden](https://options.greeks.live/area/evidentiary-burden/), [RTS 27](https://options.greeks.live/area/rts-27/), [Data-Driven Compliance](https://options.greeks.live/area/data-driven-compliance/), [Policies and Procedures](https://options.greeks.live/area/policies-and-procedures/), [MiFID II](https://options.greeks.live/area/mifid-ii/)	

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### [How Do MiFID II Requirements Influence the Selection of Counterparties for an RFQ Panel?](https://options.greeks.live/question/how-do-mifid-ii-requirements-influence-the-selection-of-counterparties-for-an-rfq-panel/)
![A complex, faceted geometric object, symbolizing a Principal's operational framework for institutional digital asset derivatives. Its translucent blue sections represent aggregated liquidity pools and RFQ protocol pathways, enabling high-fidelity execution and price discovery. A central green core signifies atomic settlement and alpha generation in market microstructure.](https://options.greeks.live/wp-content/uploads/2025/08/principals-prime-os-digital-asset-derivatives-rfq-execution.jpg)

MiFID II mandates a shift from relationship-based counterparty selection to a data-driven, auditable process architected around best execution.

- 
### [How Do Regulations like MiFID II Define Best Execution for Order Routing?](https://options.greeks.live/question/how-do-regulations-like-mifid-ii-define-best-execution-for-order-routing/)
![A precise metallic central hub with sharp, grey angular blades signifies high-fidelity execution and smart order routing. Intersecting transparent teal planes represent layered liquidity pools and multi-leg spread structures, illustrating complex market microstructure for efficient price discovery within institutional digital asset derivatives RFQ protocols.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-for-high-fidelity-execution-across-market-microstructure-dynamics.jpg)

MiFID II defines best execution as a verifiable system for achieving the best overall outcome for clients.

- 
### [How Does the Best Execution Obligation Apply When a Firm Acts as a Systematic Internaliser?](https://options.greeks.live/question/how-does-the-best-execution-obligation-apply-when-a-firm-acts-as-a-systematic-internaliser/)
![A cutaway reveals the intricate market microstructure of an institutional-grade platform. Internal components signify algorithmic trading logic, supporting high-fidelity execution via a streamlined RFQ protocol for aggregated inquiry and price discovery within a Prime RFQ.](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-execution-for-digital-asset-derivatives-via-rfq-protocols.jpg)

A Systematic Internaliser's best execution duty is met by proving its internal prices are superior to public markets through a data-driven, verifiable operational framework.

- 
### [What Are the Key Differences in Best Execution Requirements between the US and European Regulations?](https://options.greeks.live/question/what-are-the-key-differences-in-best-execution-requirements-between-the-us-and-european-regulations/)
![A dark, precision-engineered module with raised circular elements integrates with a smooth beige housing. It signifies high-fidelity execution for institutional RFQ protocols, ensuring robust price discovery and capital efficiency in digital asset derivatives market microstructure.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-rfq-system-core-high-speed-price-discovery-module.jpg)

US and EU best execution rules differ in the EU's prescriptive data demands versus the US's principles-based diligence standard.

- 
### [How Does MiFID II Change the Evidentiary Burden for Best Execution in RFQ Trading?](https://options.greeks.live/question/how-does-mifid-ii-change-the-evidentiary-burden-for-best-execution-in-rfq-trading/)
![A high-fidelity institutional digital asset derivatives execution platform. A central conical hub signifies precise price discovery and aggregated inquiry for RFQ protocols. Linear pathways represent advanced algorithmic trading routes, ensuring capital efficiency and best execution within market microstructure, crucial for options trading.](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-rfq-protocol-high-fidelity-digital-asset-derivatives-execution-1.jpg)

MiFID II elevates the best execution standard for RFQs from a procedural defense to a quantitative proof of outcome using verifiable data.

- 
### [How Has the Suspension of Rts 27 Affected Best Execution Monitoring in the Eu?](https://options.greeks.live/question/how-has-the-suspension-of-rts-27-affected-best-execution-monitoring-in-the-eu/)
![A precision-engineered RFQ protocol engine, its central teal sphere signifies high-fidelity execution for digital asset derivatives. This module embodies a Principal's dedicated liquidity pool, facilitating robust price discovery and atomic settlement within optimized market microstructure, ensuring best execution.](https://options.greeks.live/wp-content/uploads/2025/08/institutional-rfq-engine-for-digital-asset-derivatives-best-execution.jpg)

The suspension of RTS 27 shifts the best execution onus from processing public data to architecting a proprietary, multi-source intelligence system.

- 
### [How Does MiFID II Specifically Define the Scope of Best Execution?](https://options.greeks.live/question/how-does-mifid-ii-specifically-define-the-scope-of-best-execution/)
![Precision-engineered beige and teal conduits intersect against a dark void, symbolizing a Prime RFQ protocol interface. Transparent structural elements suggest multi-leg spread connectivity and high-fidelity execution pathways for institutional digital asset derivatives. This visual emphasizes atomic settlement, capital efficiency, and market microstructure dynamics for price discovery.](https://options.greeks.live/wp-content/uploads/2025/07/insti-grade-digital-asset-derivatives-rfq-protocols-multi-leg-execution-junction.jpg)

MiFID II defines best execution as a continuous obligation to use all sufficient steps to arrange a firm's systems for the best client result.

- 
### [How Do Regulatory Frameworks like Mifid Ii Shape the Technological Requirements for Best Execution?](https://options.greeks.live/question/how-do-regulatory-frameworks-like-mifid-ii-shape-the-technological-requirements-for-best-execution/)
![A complex, intersecting arrangement of sleek, multi-colored blades illustrates institutional-grade digital asset derivatives trading. This visual metaphor represents a sophisticated Prime RFQ facilitating RFQ protocols, aggregating dark liquidity, and enabling high-fidelity execution for multi-leg spreads, optimizing capital efficiency and mitigating counterparty risk.](https://options.greeks.live/wp-content/uploads/2025/07/sophisticated-multi-asset-rfq-architecture-visualizing-institutional-digital-derivatives-execution-liquidity-aggregation-and-prime-os-orchestration-for-high-fidelity-performance.jpg)

MiFID II transforms best execution from a policy statement into a data-driven engineering discipline, mandating a technological architecture for provable performance.

- 
### [How Does the UK’S Approach to Best Execution Now Differ from the EU’s?](https://options.greeks.live/question/how-does-the-uks-approach-to-best-execution-now-differ-from-the-eus/)
![Overlapping grey, blue, and teal segments, bisected by a diagonal line, visualize a Prime RFQ facilitating RFQ protocols for institutional digital asset derivatives. It depicts high-fidelity execution across liquidity pools, optimizing market microstructure for capital efficiency and atomic settlement of block trades.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-microstructure-optimization-2.jpg)

The UK's best execution approach prioritizes justifiable outcomes, while the EU's regime emphasizes procedural compliance and reporting.

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---

**Original URL:** https://options.greeks.live/question/how-does-mifid-ii-change-the-evidentiary-burden-for-proving-best-execution/
