# How Does MiFID II Define "All Sufficient Steps" for Best Execution? ▴ Question

**Published:** 2025-08-05
**Categories:** Question

---

![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)

![A central core represents a Prime RFQ engine, facilitating high-fidelity execution. Transparent, layered structures denote aggregated liquidity pools and multi-leg spread strategies](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-rfq-engine-for-institutional-digital-asset-derivatives-execution.jpg)

## Concept

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)) defines the obligation for “[all sufficient steps](https://prime.greeks.live/area/all-sufficient-steps/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite)” as a firm’s continuous, demonstrable, and data-driven process to secure the best possible result for its clients when executing orders. This mandate moves beyond a passive, check-the-box exercise. It establishes a dynamic and rigorous operational standard. The framework compels an investment firm to construct and maintain a sophisticated execution architecture.

This system must be capable of consistently delivering and verifying superior client outcomes across a spectrum of [execution factors](https://prime.greeks.live/area/execution-factors/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). At its core, the directive recasts [best execution](https://prime.greeks.live/area/best-execution/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) from a desired outcome into a foundational, non-negotiable principle of a firm’s operational design.

The shift from the previous “all reasonable steps” standard to “all [sufficient steps](https://prime.greeks.live/area/sufficient-steps/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite)” is a material change in regulatory expectation. “Reasonable” implies a standard of conduct that is fair and sensible. “Sufficient” introduces a higher threshold, one that requires a firm to prove its execution arrangements are not just sensible, but are demonstrably effective and robust enough to achieve the intended result on an ongoing basis. This necessitates a systemic approach where [execution quality](https://prime.greeks.live/area/execution-quality/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) is an engineered outcome, produced by a carefully calibrated interplay of policy, technology, and quantitative oversight.

The responsibility rests with the firm to design, implement, and validate a system that is fit for purpose. This system must be tailored to the specific nature of its clients, the financial instruments traded, and the [execution venues](https://prime.greeks.live/area/execution-venues/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) it accesses.

> The regulatory framework requires firms to systematically prove their execution quality through verifiable data and consistent monitoring.

This obligation applies comprehensively across client types, including both retail and professional clients, although the specific weighting of execution factors may differ. For retail clients, the directive places a strong emphasis on total consideration, which is the sum of the instrument’s price and all associated execution costs. For professional clients, other factors such as speed, likelihood of execution, and order size can assume greater importance depending on the specific trading strategy. The directive acknowledges that a client may provide a specific instruction, such as directing an order to a particular venue.

When a firm executes an order following such an instruction, it is deemed to have satisfied its best execution obligation for the aspects of the order covered by that instruction. This provision underscores the principle of client priority while maintaining the firm’s overarching responsibility for the [execution process](https://prime.greeks.live/question/how-do-regulatory-frameworks-like-mifid-ii-influence-the-process-for-rfq-counterparty-evaluation-and-best-execution/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) where it retains discretion.

![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)

![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)

## Strategy

A successful strategy for meeting the “all sufficient steps” requirement is built upon a foundation of a robust [Order Execution Policy](https://prime.greeks.live/area/order-execution-policy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (OEP). This document is the strategic blueprint that governs a firm’s entire execution process. It must be a clear, detailed, and easily understandable guide that explains precisely how [client orders](https://prime.greeks.live/area/client-orders/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) are executed.

The OEP is not a static document; it is a living component of the firm’s operational architecture that requires regular review and client consent. The strategy involves defining the relative importance of various execution factors, selecting appropriate execution venues, and establishing a rigorous monitoring framework to ensure consistent performance.

![Modular, metallic components interconnected by glowing green channels represent a robust Principal's operational framework for institutional digital asset derivatives. This signifies active low-latency data flow, critical for high-fidelity execution and atomic settlement via RFQ protocols across diverse liquidity pools, ensuring optimal price discovery](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-protocol-high-fidelity-execution.jpg)

## Defining the Execution Factors

The first step in formulating an [execution strategy](https://prime.greeks.live/area/execution-strategy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) is to define the hierarchy of execution factors. MiFID II lists several key factors that firms must consider. The relative importance of these factors will vary based on client classification, order characteristics, and the nature of the financial instrument. A firm’s OEP must articulate how it weighs these factors for different scenarios.

- 
**Total Consideration** This is the price of the financial instrument combined with all costs related to execution. For retail clients, this is paramount. Costs include explicit fees like commissions and implicit costs like slippage.

- 
**Speed of Execution** The velocity at which an order is executed can be a critical factor, especially in volatile markets or for algorithmic trading strategies.

- 
**Likelihood of Execution and Settlement** This pertains to the certainty that an order will be filled and settled without complications. This is particularly relevant for large or illiquid positions.

- 
**Size and Nature of the Order** Large block orders or complex multi-leg orders require a different handling strategy than small, simple orders. The strategy must account for potential market impact.

- 
**Other Considerations** This catch-all category allows firms to incorporate any other relevant factors that could affect the quality of execution.

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

## How Do Firms Select Execution Venues?

A core component of the execution strategy is the selection of execution venues. The OEP must list the venues the firm relies on to consistently achieve the best possible results for its clients. This selection process must be data-driven and subject to ongoing review.

A firm cannot simply rely on a single venue out of habit or convenience. It must be able to demonstrate why the chosen venues are optimal for specific types of orders and instruments.

### Table 1 ▴ Execution Venue Selection Matrix

| Venue Type | Primary Strengths | Best Suited For | Key Monitoring Metric |
| --- | --- | --- | --- |
| Regulated Markets (e.g. Stock Exchanges) | High transparency, deep liquidity for standard instruments. | Small to medium-sized orders in liquid equities and standardized derivatives. | Price improvement statistics, effective spread. |
| Multilateral Trading Facilities (MTFs) | Competitive pricing, faster execution speeds. | Algorithmic orders, orders where speed is a high priority. | Latency measurements, fill rates. |
| Systematic Internalisers (SIs) | Potential for price improvement, no exchange fees. | Retail orders, orders below standard market size. | Comparison against public quotes, size of order book. |
| Over-the-Counter (OTC) Desks | Execution of large or illiquid positions, customized products. | Block trades, complex derivatives, illiquid bonds. | Fairness of price assessment, comparison with similar products. |

![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)

## The Monitoring and Review Cycle

The “all sufficient steps” mandate requires a continuous cycle of monitoring and review. This is not an annual exercise but an ongoing operational process. The strategy must incorporate both pre-trade (ex-ante) and post-trade (ex-post) analysis. 

> Effective best execution strategy integrates pre-trade analytics with post-trade verification to create a continuous improvement loop.

Ex-ante analysis involves using tools to assess the likely execution quality across different venues before an order is placed. This could involve comparing real-time quotes, analyzing historical performance data for different venues, or using [smart order routing](https://prime.greeks.live/area/smart-order-routing/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) technology. Ex-post analysis involves reviewing executed trades to determine if the best possible result was achieved. This requires a systematic approach to [Transaction Cost Analysis](https://prime.greeks.live/area/transaction-cost-analysis/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (TCA), comparing the execution price against relevant benchmarks and evaluating the performance of the chosen execution venue and strategy.

![Parallel execution layers, light green, interface with a dark teal curved component. This depicts a secure RFQ protocol interface for institutional digital asset derivatives, enabling price discovery and block trade execution within a Prime RFQ framework, reflecting dynamic market microstructure for high-fidelity execution](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-driven-institutional-digital-asset-derivatives-rfq-execution-framework.jpg)

![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)

## Execution

The execution phase is where the strategic blueprint of the Order [Execution Policy](https://prime.greeks.live/area/execution-policy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) is translated into concrete operational reality. This requires a sophisticated infrastructure capable of capturing data, analyzing performance, and generating the evidence necessary to demonstrate compliance. The “all sufficient steps” obligation necessitates a move towards a quantitative and evidence-based approach to execution management. Firms must be able to prove, at any given time, that their execution arrangements are not just theoretically sound but practically effective.

![Abstract spheres and a translucent flow visualize institutional digital asset derivatives market microstructure. It depicts robust RFQ protocol execution, high-fidelity data flow, and seamless liquidity aggregation](https://options.greeks.live/wp-content/uploads/2025/07/precision-market-microstructure-for-institutional-digital-asset-derivatives-leveraging-rfq-protocols-and-atomic-settlement-across-prime-os.jpg)

## Operationalizing the Order Execution Policy

The operationalization of the OEP involves embedding its principles into the firm’s day-to-day trading workflow. This means configuring order management systems (OMS) and execution management systems (EMS) to reflect the firm’s policies on venue selection and order routing. It also involves training trading staff to understand their obligations and to make informed decisions within the established framework.

- 
**System Configuration** The OMS/EMS must be configured to apply the correct execution strategy based on the characteristics of each order. This includes setting up smart order routers (SORs) to access the approved list of execution venues and to prioritize them according to the OEP’s logic.

- 
**Pre-Trade Controls** Before an order is sent to the market, pre-trade checks should be in place to ensure it aligns with the OEP. This could include alerts for orders that are being routed to a non-preferred venue or for orders that have unusual characteristics requiring manual review.

- 
**Post-Trade Surveillance** A robust post-trade surveillance system is essential for monitoring execution quality. This system should automatically flag trades that may have received suboptimal execution, allowing for further investigation.

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

## What Does the Evidentiary Burden Entail?

A critical aspect of the “all sufficient steps” requirement is the burden of proof. Firms must be able to demonstrate to regulators, and upon request to clients, that they have complied with their best execution obligations. This requires a systematic approach to data collection, analysis, and reporting.

The evidence required goes far beyond simple trade confirmations. It must provide a comprehensive picture of the decision-making process behind each trade.

### Table 2 ▴ Evidentiary Requirements for Best Execution

| Evidence Category | Data Points to Capture | Purpose |
| --- | --- | --- |
| Pre-Trade Analysis | Market data at the time of order receipt, quotes from multiple venues, rationale for venue selection. | To demonstrate that the firm considered multiple options and made an informed choice based on its OEP. |
| Order Handling | Timestamps for order receipt, routing, and execution; details of any client instructions. | To provide a complete audit trail of the order’s lifecycle. |
| Post-Trade Analysis (TCA) | Execution price vs. arrival price, VWAP, TWAP benchmarks; slippage analysis; fill rates. | To quantitatively assess the quality of execution and identify areas for improvement. |
| Venue Performance | Quarterly reports from execution venues (RTS 27), internal analysis of venue latency, rejection rates, and price improvement statistics. | To justify the ongoing inclusion of venues in the OEP. |
| Policy Adherence | Records of staff training, documentation of any deviations from the OEP and the reasons for them. | To show that the firm has a culture of compliance and takes its obligations seriously. |

![A polished metallic needle, crowned with a faceted blue gem, precisely inserted into the central spindle of a reflective digital storage platter. This visually represents the high-fidelity execution of institutional digital asset derivatives via RFQ protocols, enabling atomic settlement and liquidity aggregation through a sophisticated Prime RFQ intelligence layer for optimal price discovery and alpha generation](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-optimization-for-high-fidelity-execution-and-liquidity-aggregation-via-prime-os-intelligence-layer.jpg)

## The Role of Technology and Quantitative Analysis

Meeting the demands of MiFID II’s best execution requirements is nearly impossible without the aid of sophisticated technology and quantitative analysis. Smart order routers are essential for dynamically accessing liquidity across multiple venues. Transaction Cost Analysis platforms are necessary for conducting rigorous post-trade reviews. Firms must invest in the tools and expertise needed to collect, store, and analyze vast amounts of trading data.

> Under MiFID II, technology transforms best execution from a qualitative goal into a quantitative, data-driven discipline.

The quantitative analysis required extends beyond simple TCA. It involves statistical analysis of venue performance, back-testing of execution strategies, and the development of models to predict market impact. This level of analytical rigor is what truly separates the “all sufficient steps” standard from its predecessor. It requires a firm to operate less like a traditional brokerage and more like a data-driven technology company, constantly seeking to optimize its execution performance through empirical analysis and continuous improvement.

![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)

## References

- 
Financial Markets Law Committee. “MiFID II ▴ Best Execution.” FMLC, 2017.

- 
Hogan Lovells. “Achieving best execution under MiFID II.” Hogan Lovells, 31 Aug. 2017.

- 
Swedish Securities Dealers Association. “Guide for drafting/review of Execution Policy under MiFID II.” SSDA, 2017.

- 
“Best Execution Under MiFID II.” PwC, 2017.

- 
European Union. “Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments.” Official Journal of the European Union, L 173/349, 12 June 2014.

![A sleek, precision-engineered device with a split-screen interface displaying implied volatility and price discovery data for digital asset derivatives. This institutional grade module optimizes RFQ protocols, ensuring high-fidelity execution and capital efficiency within market microstructure for multi-leg spreads](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-module.jpg)

## Reflection

The mandate for “all sufficient steps” compels a fundamental re-evaluation of a firm’s operational architecture. It is a catalyst for transforming the execution process into a source of competitive advantage. The knowledge gained through this rigorous framework provides more than just [regulatory compliance](https://prime.greeks.live/area/regulatory-compliance/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). It offers a deep, quantitative understanding of market mechanics and execution quality.

How does your current operational framework measure up to this standard? Is your execution process a cost center, or is it a source of demonstrable value for your clients and your firm? The answers to these questions will define the leaders in the next era of financial markets.

![A polished, abstract geometric form represents a dynamic RFQ Protocol for institutional-grade digital asset derivatives. A central liquidity pool is surrounded by opening market segments, revealing an emerging arm displaying high-fidelity execution data](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-institutional-digital-asset-derivatives-rfq-protocol-system.jpg)

## Glossary

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

## All Sufficient Steps

Meaning ▴ All Sufficient Steps denotes a design principle and operational mandate within a system where every component or process is engineered to autonomously achieve its defined objective without requiring external intervention or additional inputs beyond its initial parameters. </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 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)

## 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-factors/?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 Factors

Meaning ▴ Execution Factors are the quantifiable, dynamic variables that directly influence the outcome and quality of a trade execution within institutional digital asset markets. </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 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)

## Best Execution

Meaning ▴ Best Execution is the obligation to obtain the most favorable terms reasonably available for a client's order. </a><a href="https://prime.greeks.live/area/execution-quality/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Beige module, dark data strip, teal reel, clear processing component. This illustrates an RFQ protocol's high-fidelity execution, facilitating principal-to-principal atomic settlement in market microstructure, essential for a Crypto Derivatives OS](https://options.greeks.live/wp-content/uploads/2025/07/institutional-crypto-derivatives-rfq-protocol-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/area/sufficient-steps/?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)

## Sufficient Steps

Meaning ▴ Sufficient Steps constitute the minimum, verifiable sequence of operations required to achieve a defined, deterministic outcome within a financial protocol or system, ensuring operational closure and state transition. </a><a href="https://prime.greeks.live/area/execution-venues/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A precise central mechanism, representing an institutional RFQ engine, is bisected by a luminous teal liquidity pipeline. This visualizes high-fidelity execution for digital asset derivatives, enabling precise price discovery and atomic settlement within an optimized market microstructure for multi-leg spreads](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-core-execution-system-1.jpg)

## Execution Venues

Meaning ▴ Execution Venues are regulated marketplaces or bilateral platforms where financial instruments are traded and orders are matched, encompassing exchanges, multilateral trading facilities, organized trading facilities, and over-the-counter desks. </a><a href="https://prime.greeks.live/question/how-do-regulatory-frameworks-like-mifid-ii-influence-the-process-for-rfq-counterparty-evaluation-and-best-execution/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Abstract clear and teal geometric forms, including a central lens, intersect a reflective metallic surface on black. This embodies market microstructure precision, algorithmic trading for institutional digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-prime-os.jpg)

## Execution Process

MiFID II mandates a data-driven, auditable RFQ process, transforming counterparty evaluation into a quantitative discipline to ensure best execution. </a><a href="https://prime.greeks.live/area/order-execution-policy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A precision-engineered metallic institutional trading platform, bisected by an execution pathway, features a central blue RFQ protocol engine. This Crypto Derivatives OS core facilitates high-fidelity execution, optimal price discovery, and multi-leg spread trading, reflecting advanced market microstructure](https://options.greeks.live/wp-content/uploads/2025/08/precision-engineered-institutional-digital-asset-derivatives-execution-core-facilitating-rfq-protocol-driven-optimal-price-discovery-and-multi-leg-spread-trading-for-capital-efficiency.jpg)

## Order Execution Policy

Meaning ▴ An Order Execution Policy defines the systematic procedures and criteria governing how an institutional trading desk processes and routes client or proprietary orders across various liquidity venues. </a><a href="https://prime.greeks.live/area/client-orders/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![An abstract, precision-engineered mechanism showcases polished chrome components connecting a blue base, cream panel, and a teal display with numerical data. This symbolizes an institutional-grade RFQ protocol for digital asset derivatives, ensuring high-fidelity execution, price discovery, multi-leg spread processing, and atomic settlement within a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-precision-execution-1.jpg)

## Client Orders

Meaning ▴ Client Orders represent the formal instructions submitted by an institutional principal to an execution system, specifying the intent to buy or sell a defined quantity of a particular digital asset derivative at certain price and time parameters. </a><a href="https://prime.greeks.live/area/execution-strategy/?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)

## Execution Strategy

Meaning ▴ A defined algorithmic or systematic approach to fulfilling an order in a financial market, aiming to optimize specific objectives like minimizing market impact, achieving a target price, or reducing transaction costs. </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 sleek, dark sphere, symbolizing the Intelligence Layer of a Prime RFQ, rests on a sophisticated institutional grade platform. Its surface displays volatility surface data, hinting at quantitative analysis for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-platform-intelligence-layer-optimizing-high-fidelity-execution.jpg)

## 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/smart-order-routing/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, institutional-grade system processes a dynamic stream of market microstructure data, projecting a high-fidelity execution pathway for digital asset derivatives. This represents a private quotation RFQ protocol, optimizing price discovery and capital efficiency through an intelligence layer](https://options.greeks.live/wp-content/uploads/2025/07/institutional-rfq-digital-asset-derivatives-execution-microstructure-prime-os.jpg)

## Smart Order Routing

Meaning ▴ Smart Order Routing is an algorithmic execution mechanism designed to identify and access optimal liquidity across disparate 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 precision mechanical assembly: black base, intricate metallic components, luminous mint-green ring with dark spherical core. This embodies an institutional Crypto Derivatives OS, its market microstructure enabling high-fidelity execution via RFQ protocols for intelligent liquidity aggregation and optimal price discovery](https://options.greeks.live/wp-content/uploads/2025/08/institutional-crypto-derivatives-rfq-engine-high-fidelity-execution.jpg)

## Execution Policy

Meaning ▴ An Execution Policy defines a structured set of rules and computational logic governing the handling and execution of financial orders within a trading system. </a><a href="https://prime.greeks.live/area/regulatory-compliance/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Precision metallic pointers converge on a central blue mechanism. This symbolizes Market Microstructure of Institutional Grade Digital Asset Derivatives, depicting High-Fidelity Execution and Price Discovery via RFQ protocols, ensuring Capital Efficiency and Atomic Settlement for Multi-Leg Spreads](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-for-precision-execution.jpg)

## Regulatory Compliance

Meaning ▴ Adherence to legal statutes, regulatory mandates, and internal policies governing financial operations, especially in institutional digital asset derivatives. </a>

**Tags:** [Sufficient Steps](https://options.greeks.live/area/sufficient-steps/), [Smart Order Routing](https://options.greeks.live/area/smart-order-routing/), [Execution Policy](https://options.greeks.live/area/execution-policy/), [Execution Factors](https://options.greeks.live/area/execution-factors/), [Client Orders](https://options.greeks.live/area/client-orders/), [Execution Quality](https://options.greeks.live/area/execution-quality/)	

## Discover More

- 
### [How Does MiFID II Differ from Regulation NMS in Defining Best Execution?](https://options.greeks.live/question/how-does-mifid-ii-differ-from-regulation-nms-in-defining-best-execution/)
![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. This intelligence layer optimizes price discovery, managing portfolio margin and ensuring best execution in market microstructure.](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-protocol-core-engine-for-best-execution.jpg)

MiFID II mandates a qualitative, process-driven framework for best outcome, while Reg NMS prioritizes price-centric, quantitative execution.

- 
### [What Are the Specific Governance Requirements for Best Execution under MiFID II?](https://options.greeks.live/question/what-are-the-specific-governance-requirements-for-best-execution-under-mifid-ii/)
![A translucent institutional-grade platform reveals its RFQ execution engine with radiating intelligence layer pathways. Central price discovery mechanisms and liquidity pool access points are flanked by pre-trade analytics modules for digital asset derivatives and multi-leg spreads, ensuring high-fidelity execution.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-core-platform.jpg)

MiFID II best execution governance requires firms to build, monitor, and prove a systematic framework for delivering the best possible client results.

- 
### [What Are the Core Differences between MiFID II and FINRA Best Execution Requirements?](https://options.greeks.live/question/what-are-the-core-differences-between-mifid-ii-and-finra-best-execution-requirements/)
![Abstract RFQ engine, transparent blades symbolize multi-leg spread execution and high-fidelity price discovery. The central hub aggregates deep liquidity pools. Red glows indicate real-time market microstructure dynamics and optimal capital efficiency for institutional digital asset derivatives block trades.](https://options.greeks.live/wp-content/uploads/2025/07/principal-rfq-engine-for-crypto-derivatives-high-fidelity-block-trade.jpg)

MiFID II mandates a prescriptive, data-heavy "all sufficient steps" approach, while FINRA requires a principles-based "reasonable diligence."

- 
### [How Do MiFID II and Regulation NMS Define the Best Execution Obligations for Investment Firms?](https://options.greeks.live/question/how-do-mifid-ii-and-regulation-nms-define-the-best-execution-obligations-for-investment-firms/)
![Sleek, engineered components depict an institutional-grade Execution Management System. The prominent dark structure represents high-fidelity execution of digital asset derivatives. Behind it, sweeping forms illustrate latent liquidity and price discovery within a dark pool. The distinct green plane signifies atomic settlement and capital efficiency via RFQ protocols.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-for-optimized-price-discovery-high-fidelity-execution-and-market-microstructure.jpg)

MiFID II and Reg NMS define best execution as distinct architectures one requires a holistic process, the other a price-centric outcome.

- 
### [How Does MiFID II Change the Evidentiary Burden for Asset Managers?](https://options.greeks.live/question/how-does-mifid-ii-change-the-evidentiary-burden-for-asset-managers/)
![A transparent, multi-faceted component, indicative of an RFQ engine's intricate market microstructure logic, emerges from complex FIX Protocol connectivity. Its sharp edges signify high-fidelity execution and price discovery precision for institutional digital asset derivatives. This Prime RFQ module optimizes algorithmic trading and capital efficiency.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-optimized-for-best-execution.jpg)

MiFID II transforms the evidentiary burden into a systemic requirement to prove optimal execution outcomes through continuous data analysis.

- 
### [How Do Regulatory Frameworks like MiFID II and FINRA Define Best Execution Differently for Principal versus Agency Trades in OTC Derivatives?](https://options.greeks.live/question/how-do-regulatory-frameworks-like-mifid-ii-and-finra-define-best-execution-differently-for-principal-versus-agency-trades-in-otc-derivatives/)
![Geometric panels, light and dark, interlocked by a luminous diagonal, depict an institutional RFQ protocol for digital asset derivatives. Central nodes symbolize liquidity aggregation and price discovery within a Principal's execution management system, enabling high-fidelity execution and atomic settlement in market microstructure.](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-protocol-execution-engine-1.jpg)

MiFID II and FINRA define best execution differently, with MiFID II focusing on "all sufficient steps" and a fair process, while FINRA emphasizes "reasonable diligence" and a rigorous review of outcomes.

- 
### [What Are the Key Differences in Best Execution Obligations under MiFID II versus FINRA Rules?](https://options.greeks.live/question/what-are-the-key-differences-in-best-execution-obligations-under-mifid-ii-versus-finra-rules/)
![A glossy, segmented sphere with a luminous blue 'X' core represents a Principal's Prime RFQ. It highlights multi-dealer RFQ protocols, high-fidelity execution, and atomic settlement for institutional digital asset derivatives, signifying unified liquidity pools, market microstructure, and capital efficiency.](https://options.greeks.live/wp-content/uploads/2025/08/prime-os-core-for-best-rfq-digital-asset-derivatives-institutional-trade-flow.jpg)

MiFID II and FINRA best execution rules differ in their core mandate, data requirements, and scope.

- 
### [What Are the Key Differences between MiFID II and Regulation NMS regarding Best Execution?](https://options.greeks.live/question/what-are-the-key-differences-between-mifid-ii-and-regulation-nms-regarding-best-execution/)
![Stacked precision-engineered circular components, varying in size and color, rest on a cylindrical base. This modular assembly symbolizes a robust Crypto Derivatives OS architecture, enabling high-fidelity execution for institutional RFQ protocols. It embodies layered liquidity aggregation, optimized price discovery within market microstructure, and capital efficiency for digital asset derivatives.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-rfq-protocol-architecture-optimized-for-high-fidelity-execution.jpg)

MiFID II mandates a holistic, principles-based approach to best execution, while Regulation NMS prioritizes a rules-based, price-centric framework.

- 
### [How Does MiFID II Define the Concept of All Sufficient Steps for Best Execution?](https://options.greeks.live/question/how-does-mifid-ii-define-the-concept-of-all-sufficient-steps-for-best-execution/)
![A futuristic, metallic sphere, the Prime RFQ engine, anchors two intersecting blade-like structures. These symbolize multi-leg spread strategies and precise algorithmic execution for institutional digital asset derivatives. Blue luminescence signifies real-time price discovery and optimal RFQ protocol routing across aggregated liquidity pools.](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-for-high-fidelity-rfq-execution-in-digital-asset-derivatives.jpg)

MiFID II defines "all sufficient steps" as an evidence-based, dynamic system designed to prove the delivery of the best possible client outcome.

---

## 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 MiFID II Define &#8220;All Sufficient Steps&#8221; for Best Execution?",
            "item": "https://options.greeks.live/question/how-does-mifid-ii-define-all-sufficient-steps-for-best-execution-2/"
        }
    ]
}
```

```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-mifid-ii-define-all-sufficient-steps-for-best-execution-2/"
    },
    "headline": "How Does MiFID II Define \"All Sufficient Steps\" for Best Execution? \u25b4 Question",
    "description": "MiFID II's \"all sufficient steps\" mandates a continuous, data-driven process to prove and deliver the best possible client execution results. \u25b4 Question",
    "url": "https://options.greeks.live/question/how-does-mifid-ii-define-all-sufficient-steps-for-best-execution-2/",
    "datePublished": "2025-08-05T16:47:41+00:00",
    "dateModified": "2025-08-05T16:47:41+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/principal-digital-asset-derivatives-rfq-engine-high-fidelity-execution.jpg",
        "caption": "This abstract system of intersecting structures and glowing conduits represents a sophisticated Crypto Derivatives OS. It embodies a Principal's operational framework for institutional digital asset derivatives, driven by an advanced RFQ engine. The visual emphasizes high-fidelity execution of block trades and multi-leg spreads, achieving best execution via optimized market microstructure and atomic settlement. This platform ensures robust price discovery, prevents information leakage, and maximizes capital efficiency for Bitcoin options and Ethereum futures, supporting advanced algorithmic trading and portfolio margin."
    },
    "keywords": [
        "All Sufficient Steps",
        "Best Execution",
        "Client Orders",
        "Execution Factors",
        "Execution Policy",
        "Execution Quality",
        "Execution Strategy",
        "Execution Venues",
        "Financial Regulation",
        "Investment Firms",
        "MiFID II",
        "Multilateral Trading Facility",
        "Order Execution",
        "Order Execution Policy",
        "Regulatory Compliance",
        "Smart Order Routing",
        "Sufficient Steps",
        "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"
    }
}
```

```json
{
    "@context": "https://schema.org",
    "@type": "FAQPage",
    "mainEntity": [
        {
            "@type": "Question",
            "name": "How Do Firms Select Execution Venues?",
            "acceptedAnswer": {
                "@type": "Answer",
                "text": "A core component of the execution strategy is the selection of execution venues. The OEP must list the venues the firm relies on to consistently achieve the best possible results for its clients. This selection process must be data-driven and subject to ongoing review. A firm cannot simply rely on a single venue out of habit or convenience. It must be able to demonstrate why the chosen venues are optimal for specific types of orders and instruments."
            }
        },
        {
            "@type": "Question",
            "name": "What Does The Evidentiary Burden Entail?",
            "acceptedAnswer": {
                "@type": "Answer",
                "text": "A critical aspect of the \"all sufficient steps\" requirement is the burden of proof. Firms must be able to demonstrate to regulators, and upon request to clients, that they have complied with their best execution obligations. This requires a systematic approach to data collection, analysis, and reporting. The evidence required goes far beyond simple trade confirmations. It must provide a comprehensive picture of the decision-making process behind each trade."
            }
        }
    ]
}
```


---

**Original URL:** https://options.greeks.live/question/how-does-mifid-ii-define-all-sufficient-steps-for-best-execution-2/
