# How Does MiFID II Differ from FINRA on Best Execution Requirements? ▴ Question

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

---

![A transparent glass bar, representing high-fidelity execution and precise RFQ protocols, extends over a white sphere symbolizing a deep liquidity pool for institutional digital asset derivatives. A small glass bead signifies atomic settlement within the granular market microstructure, supported by robust Prime RFQ infrastructure ensuring optimal price discovery and minimal slippage](https://options.greeks.live/wp-content/uploads/2025/07/institutional-grade-digital-asset-derivatives-rfq-execution-prime-os-intelligence-layer-facilitating-optimal-price-discovery-and-best-execution.jpg)

![Precision-engineered institutional-grade Prime RFQ modules connect via intricate hardware, embodying robust RFQ protocols for digital asset derivatives. This underlying market microstructure enables high-fidelity execution and atomic settlement, optimizing capital efficiency](https://options.greeks.live/wp-content/uploads/2025/08/precision-engineered-prime-os-modules-enabling-institutional-digital-asset-derivatives-rfq-protocols-for-best-execution.jpg)

## Concept

An examination of the best execution mandates under the [Financial Industry Regulatory Authority](https://prime.greeks.live/area/financial-industry-regulatory-authority/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (FINRA) and the Markets in Financial Instruments Directive II (MiFID II) begins not with a simple comparison of rules, but with an appreciation of two fundamentally divergent regulatory philosophies. These philosophies are encoded into the very structure of their respective capital markets. One system is predicated on a principles-based framework of [reasonable diligence](https://prime.greeks.live/area/reasonable-diligence/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), entrusting firms to develop and defend their own methodologies for achieving favorable client outcomes.

The other operates as a highly prescriptive, data-centric regime, mandating a detailed and transparent evidentiary trail to demonstrate the systematic processes underpinning [execution quality](https://prime.greeks.live/area/execution-quality/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). Understanding this core ideological split is the necessary first step for any institution seeking to architect a compliance and execution framework that is not only robust but also operationally coherent across jurisdictions.

The FINRA framework, particularly Rule 5310, is an evolution of a long-standing common law duty. It requires a firm to use “reasonable diligence” to ascertain the best market for a security and to buy or sell in that market so the resulting price is as favorable as possible under prevailing conditions. The term “reasonable diligence” is the conceptual anchor of the entire US system. It provides firms with significant flexibility in how they structure their execution policies, allowing them to weigh a variety of [qualitative factors](https://prime.greeks.live/area/qualitative-factors/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) alongside price and cost.

These can include the character of the market, the size and type of the transaction, and the accessibility of quotations. The system is built on the premise that the firm, as a fiduciary, is best positioned to make a holistic judgment. The regulatory burden is therefore weighted towards the firm’s ability to articulate and defend the reasonableness of its process, particularly during periodic reviews.

![A central rod, symbolizing an RFQ inquiry, links distinct liquidity pools and market makers. A transparent disc, an execution venue, facilitates price discovery](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-rfq-protocol-execution-optimization.jpg)

## A Divergence in Evidentiary Philosophy

[MiFID II](https://prime.greeks.live/area/mifid-ii/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) represents a paradigm shift away from this model. Its architects, responding to the increasing fragmentation and automation of European markets, embedded a philosophy of explicit proof into its core. The directive requires firms to take “all sufficient steps” to obtain the best possible result for their clients. The replacement of “reasonable” with “sufficient” is a deliberate and meaningful escalation of the standard of care.

This elevation moves the requirement from a subjective assessment of diligence to a more objective, evidence-based demonstration of process. A firm is no longer simply asked to be diligent; it is required to systematically prove, through extensive data collection and public disclosure, that its execution arrangements are engineered to produce the best outcome consistently.

This mandate materializes in the form of detailed reporting requirements, most notably through the Regulatory Technical Standards (RTS) 27 and 28. [Execution venues](https://prime.greeks.live/area/execution-venues/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) must publish quarterly data on execution quality (RTS 27), and investment firms must then use this and their own internal data to publish an annual report detailing their top five execution venues for each class of instrument and a summary of the [execution quality obtained](https://prime.greeks.live/question/how-can-pre-trade-analytics-differentiate-between-high-quality-and-low-quality-quotes-in-an-rfq-auction/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (RTS 28). This creates a feedback loop of public transparency.

The intent is to empower clients and regulators to scrutinize and compare execution quality on a like-for-like basis, using a standardized data set. The operational consequence is that compliance becomes an exercise in data engineering and quantitative analysis, a stark contrast to the more qualitative, governance-focused approach inherent in the FINRA regime.

> The core distinction lies in the burden of proof ▴ FINRA requires a defensible process of reasonable judgment, while MiFID II demands a demonstrable, data-driven system of sufficient steps.

This philosophical divide has profound implications for the technological and operational architecture of a trading firm. A firm operating primarily under FINRA rules might prioritize the development of a strong governance framework, with a well-documented charter for its [Best Execution Committee](https://prime.greeks.live/area/best-execution-committee/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) and robust qualitative review procedures. A firm subject to MiFID II, conversely, must prioritize the construction of a data pipeline capable of ingesting, normalizing, and analyzing vast quantities of execution data from multiple venues.

Its systems must be able to systematically evaluate venue performance based on the mandated [RTS 27](https://prime.greeks.live/area/rts-27/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) reports and its own [transaction cost analysis](https://prime.greeks.live/area/transaction-cost-analysis/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (TCA), and then synthesize this information into the public RTS 28 disclosure. The two approaches are not mutually exclusive, but they demand different primary skill sets and technological investments, shaping the very DNA of the firm’s trading infrastructure.

![Abstract system interface on a global data sphere, illustrating a sophisticated RFQ protocol for institutional digital asset derivatives. The glowing circuits represent market microstructure and high-fidelity execution within a Prime RFQ intelligence layer, facilitating price discovery and capital efficiency across liquidity pools](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-protocol-execution-prime-os.jpg)

![A sleek, multi-layered platform with a reflective blue dome represents an institutional grade Prime RFQ for digital asset derivatives. The glowing interstice symbolizes atomic settlement and capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/optimized-rfq-protocol-for-institutional-digital-asset-derivatives-1.jpg)

## Strategy

Developing a strategic response to MiFID II and [FINRA best execution](https://prime.greeks.live/area/finra-best-execution/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) requirements compels a firm to look beyond mere compliance and architect distinct operational strategies that align with the unique demands of each regulatory environment. For a global institution, this means creating a bifurcated or a cleverly harmonized system that satisfies both the process-driven European model and the principles-based American one. The strategic choices made will directly influence everything from technology procurement and data governance to the composition of oversight committees and the firm’s competitive positioning.

![A sleek Principal's Operational Framework connects to a glowing, intricate teal ring structure. This depicts an institutional-grade RFQ protocol engine, facilitating high-fidelity execution for digital asset derivatives, enabling private quotation and optimal price discovery within market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-execution-engine-for-digital-asset-derivatives-rfq.jpg)

## The MiFID II Strategy a Data-Centric Arms Race

[Under MiFID](https://prime.greeks.live/question/what-are-the-key-differences-in-best-execution-obligations-for-rfqs-under-mifid-i-vs-mifid-ii/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) II, the winning strategy is one of data supremacy. The regulation’s insistence on “all sufficient steps” and the public disclosure mandates of [RTS 28](https://prime.greeks.live/area/rts-28/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) effectively turn execution quality into a quantifiable and comparable metric. A firm’s strategic imperative is therefore to build an infrastructure that can not only meet the reporting obligations but also use the mandated transparency as a competitive tool. This involves several key pillars.

First is the creation of a robust data ingestion and analysis engine. This system must be capable of consuming quarterly RTS 27 reports from a multitude of execution venues, including lit exchanges, multilateral trading facilities (MTFs), systematic internalisers (SIs), and other liquidity providers. The data, which covers price, costs, speed, and likelihood of execution, must be normalized and integrated with the firm’s own internal TCA data. The strategic goal here is to move beyond simple compliance and generate genuine insight into venue performance, identifying which venues provide superior execution for specific asset classes, order sizes, and market conditions.

Second, the strategy must define a dynamic venue and counterparty selection process. A static list of preferred venues is insufficient. The MiFID II framework demands that firms regularly assess whether their chosen venues continue to provide the best possible results. This necessitates a formal, data-driven process for reviewing and adjusting execution arrangements.

The firm’s Order Management System (OMS) and Smart Order Router (SOR) must be configured to use this analysis, dynamically routing orders based on a sophisticated understanding of which venue is likely to provide the optimal outcome according to the firm’s execution policy. The policy itself becomes a strategic document, clearly articulating the relative importance of different execution factors (e.g. price, speed, certainty) for various client types and financial instruments.

The following table outlines the strategic considerations when evaluating different types of execution venues under the MiFID II regime:

### Table 1 ▴ Strategic Venue Analysis Under MiFID II

| Venue Type | Primary Strategic Advantage | Key Data Point from RTS 27 | Associated Risk to Monitor |
| --- | --- | --- | --- |
| Lit Exchange | Transparent price discovery and access to deep, centralized liquidity for standard orders. | Average effective spread; likelihood of execution for different order sizes. | Potential for market impact on large orders; higher explicit costs (exchange fees). |
| Systematic Internaliser (SI) | Principal liquidity from a single dealer, potentially offering price improvement over the public quote. | Price improvement metrics (percentage of orders improved and average improvement amount). | Potential for information leakage; dependency on a single counterparty’s pricing. |
| Multilateral Trading Facility (MTF) – Dark Pool | Reduced market impact for large orders due to pre-trade anonymity. | Average size of executed orders; metrics on price improvement versus a benchmark (e.g. VWAP). | Adverse selection risk (trading with more informed participants); lower certainty of execution. |
| OTC Counterparty | Access to bespoke liquidity for highly illiquid or complex instruments. | Not subject to RTS 27, requiring the firm to gather its own comparative pricing data. | Lack of transparency; significant counterparty credit risk; high bar for demonstrating best execution. |

![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)

## The FINRA Strategy a Governance-Centric Approach

A successful strategy for FINRA compliance prioritizes governance, documentation, and the establishment of a defensible review process. Since the rule is principles-based, the onus is on the firm to define what “reasonable diligence” means within the context of its business model and then to consistently apply and document that definition. This is less about a data arms race and more about building an unimpeachable system of internal controls and oversight.

> The strategic pivot from MiFID II to FINRA is a shift from demonstrating outcomes with data to justifying decisions through process.

The cornerstone of a FINRA strategy is the Best [Execution Committee](https://prime.greeks.live/question/how-should-a-firms-best-execution-committee-quantitatively-evaluate-and-compare-different-execution-venues/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). This body, which should be composed of senior representatives from trading, compliance, technology, and operations, is responsible for interpreting the rule and overseeing its implementation. The committee’s charter is a critical strategic document, defining the scope of its authority, the frequency of its meetings (at least quarterly), and the specific factors it will consider in its reviews. The strategy must ensure this committee has the authority to effect change, such as directing the modification of order routing logic or terminating relationships with underperforming venues.

The second component of the strategy is the “regular and rigorous review.” The firm must design a repeatable, well-documented process for assessing execution quality. While this review will be informed by TCA and other quantitative metrics, it also explicitly incorporates qualitative judgments. The strategy must define how these qualitative factors are assessed and recorded.

For example, how does the firm evaluate a venue’s operational stability or the quality of its customer service? The documentation of these reviews is paramount, as it forms the primary evidence of compliance during a regulatory examination.

- **Defining the Review Universe** ▴ The strategy must clearly articulate which order flow is subject to review, categorized by asset class, order type, and client segment.

- **Establishing Quantitative Benchmarks** ▴ While not as prescriptive as MiFID II, the strategy should identify key metrics for review, such as [Price Improvement](https://prime.greeks.live/area/price-improvement/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) Statistics, Effective Spread over Quoted Spread, and execution latency statistics provided by vendors or calculated internally.

- **Structuring Qualitative Assessment** ▴ A formal process must be developed for evaluating factors that are not easily quantified. This includes assessing the impact of market outages, changes in a venue’s routing logic, or feedback from traders regarding a counterparty’s responsiveness.

- **Documenting Corrective Actions** ▴ The strategy must include a closed-loop process for addressing deficiencies. If a review identifies an issue with an execution venue, the committee must document the steps taken to investigate, remediate, and monitor the situation.

Ultimately, the FINRA strategy is about building a narrative. It’s the story of how the firm, through its governance structures and disciplined review processes, consistently acts with reasonable diligence to protect its clients’ interests. The strength of this narrative, supported by meticulous documentation, is the firm’s best defense and a key strategic asset.

![A sleek, metallic algorithmic trading component with a central circular mechanism rests on angular, multi-colored reflective surfaces, symbolizing sophisticated RFQ protocols, aggregated liquidity, and high-fidelity execution within institutional digital asset derivatives market microstructure. This represents the intelligence layer of a Prime RFQ for optimal price discovery](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-system-architecture-for-optimal-price-discovery-and-high-fidelity-execution.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)

## Execution

The execution of a [best execution](https://prime.greeks.live/area/best-execution/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) policy translates strategic designs into tangible, operational workflows. The profound differences between MiFID II and FINRA manifest most clearly at this level of implementation. For MiFID II, execution is a detailed, data-intensive production process, culminating in public disclosures.

For FINRA, it is a disciplined, cyclical process of internal review, analysis, and documentation. An effective operational playbook must address the granular requirements of each regime with precision.

![A dark blue sphere and teal-hued circular elements on a segmented surface, bisected by a diagonal line. This visualizes institutional block trade aggregation, algorithmic price discovery, and high-fidelity execution within a Principal's Prime RFQ, optimizing capital efficiency and mitigating counterparty risk for digital asset derivatives and multi-leg spreads](https://options.greeks.live/wp-content/uploads/2025/07/market-microstructure-driven-institutional-digital-asset-derivatives-rfq.jpg)

## The MiFID II Operational Playbook

Operating under MiFID II requires a firm to function like a data processing factory. The primary operational challenge is the systematic collection, analysis, and reporting of execution quality data in a manner that satisfies the prescriptive nature of RTS 27 and RTS 28. The core of the playbook is the annual production of the RTS 28 report, a public document that serves as the ultimate testament to the firm’s execution processes.

The operational cycle begins with the quarterly ingestion of RTS 27 reports from all execution venues the firm utilizes. This is a significant data management task, requiring a system to parse varied data formats and map them into a single, normalized database. Once the data is aggregated, the analysis phase begins. The firm must compare the performance of its top five venues across multiple dimensions for each class of financial instrument.

This analysis must go beyond simple volume metrics and provide a qualitative summary of the execution quality obtained. Herein lies a moment for intellectual grappling ▴ the sheer volume of data mandated by RTS 27 and the complexity of its analysis raise a critical question. Does this exhaustive, resource-intensive process genuinely lead to superior execution outcomes for the end client, or does it risk becoming a “tick-the-box” compliance exercise where the production of the report itself, rather than the insight it might contain, becomes the primary goal? The operational cost is immense, and the firm must constantly question whether the analytical output justifies the investment, or if the regulation inadvertently prioritizes auditable data over actionable intelligence.

The following table provides a detailed breakdown of the core data components and the associated analytical narrative required for an RTS 28 disclosure, illustrating the depth of the operational task.

### Table 2 ▴ MiFID II RTS 28 Disclosure Framework

| RTS 28 Component | Operational Task | Required Data Points | Qualitative Summary Requirement |
| --- | --- | --- | --- |
| Top 5 Venue Reporting | For each instrument class, identify the top five venues by trading volume and list the percentage of volume and orders routed to each. | Venue Name/LEI, Total Volume Executed, Total Orders Executed, Percentage of Passive/Aggressive/Directed Orders. | Explain the rationale for the choice of venues and any material changes from the previous year. |
| Execution Quality Summary | Analyze and explain the execution quality obtained across all venues used during the year. | Internal TCA data, RTS 27 data on price, costs, speed, likelihood of execution. | Provide a detailed explanation of how the firm has monitored and verified that it achieved the best possible results for its clients. |
| Conflicts of Interest | Detail any close links, conflicts of interest, or common ownership with respect to the execution venues used. | List of affiliated venues, description of ownership structure. | Explain the steps taken to manage and mitigate these conflicts to ensure they do not compromise client outcomes. |
| Costs and Charges | Disclose information on any payments made or received by the firm from execution venues (e.g. rebates). | Nature and amount of any payments. | Explain how these payments are factored into the best execution analysis and how they benefit the client. |

![A sleek, bimodal digital asset derivatives execution interface, partially open, revealing a dark, secure internal structure. This symbolizes high-fidelity execution and strategic price discovery via institutional RFQ protocols](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-protocols-price-discovery.jpg)

## The FINRA Operational Playbook

The operational execution of FINRA’s Rule 5310 is a fundamentally internal-facing process. The playbook is not about producing a public report; it is about creating a robust, defensible record of the firm’s governance and review procedures. The central operational event is the quarterly meeting of the Best Execution Committee. The work leading up to this meeting and the documentation that results from it are the pillars of the compliance framework.

FINRA polices the outcome; MiFID II polices the process.

The process begins with the preparation of the quarterly review pack. This document, prepared by the compliance or operations team, aggregates the necessary quantitative and qualitative information for the committee’s review. This includes TCA reports, routing statistics from the firm’s SOR, reports on system outages or other material events, and any relevant market structure changes. Unlike the MiFID II process, which is heavily focused on standardized venue-supplied data, the FINRA process allows the firm to define its own key performance indicators.

The committee meeting itself is a structured operational procedure. The agenda must ensure that all relevant aspects of the firm’s execution arrangements are discussed. This includes a review of the performance of existing routing destinations, an evaluation of potential new venues, and a discussion of any specific transactions that required special handling. The meeting minutes are a critical piece of evidence.

They must record not only the data that was reviewed but also the committee’s analysis, its decisions, and the rationale behind those decisions. If the committee decides to change a routing table or terminate a relationship with a broker, the minutes must clearly state why.

The following procedural list outlines the key steps in executing a quarterly best execution review under FINRA rules:

- **Data Aggregation** ▴ Prior to the meeting, the support team compiles a comprehensive data pack. This includes:

<li>Quantitative TCA reports (e.g. implementation shortfall, effective/quoted spread analysis) for all relevant order flow.

- Execution speed and fill rate statistics for top routing venues.

- Summary of any price improvement received from venues.

- A log of system downtimes or other operational issues affecting execution.

</li>
- **Committee Review and Analysis** ▴ During the scheduled meeting, the committee members review the data pack and discuss performance. Key agenda items include:

<li>A comparison of execution quality across different venues for similar types of orders.

- A review of the effectiveness of the firm’s [smart order routing](https://prime.greeks.live/area/smart-order-routing/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) logic.

- An assessment of any material changes in the market or with execution venues that could affect performance.

</li>
- **Decision Making** ▴ Based on the analysis, the committee makes and documents formal decisions. This could involve:

<li>Approving changes to the firm’s routing tables.

- Requesting further due diligence on a new or existing venue.

- Directing the technology team to implement changes to execution algorithms.

</li>
- **Documentation and Follow-Up** ▴ The meeting’s conclusions are formally documented in detailed minutes. Action items are assigned to specific individuals with clear deadlines, and progress is tracked for review at the next quarterly meeting. This creates a continuous, closed-loop oversight process.

This cyclical, governance-heavy process stands in stark contrast to the linear, data-production workflow of MiFID II. Both are designed to achieve the same ultimate goal of protecting client interests, but they require profoundly different operational muscles and technological systems to execute effectively.

![A central blue sphere, representing a Liquidity Pool, balances on a white dome, the Prime RFQ. Perpendicular beige and teal arms, embodying RFQ protocols and Multi-Leg Spread strategies, extend to four peripheral blue elements](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-digital-asset-derivatives-rfq-protocol-execution-framework.jpg)

## References

- Financial Industry Regulatory Authority. _FINRA Rule 5310 ▴ Best Execution and Interpositioning_. FINRA, 2014.

- European Parliament and Council of the European Union. _Directive 2014/65/EU on markets in financial instruments (MiFID II)_. Official Journal of the European Union, 2014.

- European Commission. _Commission Delegated Regulation (EU) 2017/575 (RTS 27)_. Official Journal of the European Union, 2017.

- European Commission. _Commission Delegated Regulation (EU) 2017/576 (RTS 28)_. Official Journal of the European Union, 2017.

- O’Hara, Maureen. _Market Microstructure Theory_. Blackwell Publishers, 1995.

- Harris, Larry. _Trading and Exchanges ▴ Market Microstructure for Practitioners_. Oxford University Press, 2003.

- Foucault, Thierry, et al. “Best Execution and the European MiFID Directive.” _HEC Paris Research Paper No. FIN-2017-1200_, 2017.

- Angel, James J. and Lawrence E. Harris. “Equity Trading in the 21st Century ▴ An Update.” _Quarterly Journal of Finance_, vol. 3, no. 1, 2013, pp. 1-33.

- Chakravarty, Sugato, and Stewart, Robert. “Has MiFID II achieved its goals? An assessment of the impact of MiFID II on market quality and competition.” _Journal of Financial Markets_, vol. 58, 2022, 100649.

![A metallic, circular mechanism, a precision control interface, rests on a dark circuit board. This symbolizes the core intelligence layer of a Prime RFQ, enabling low-latency, high-fidelity execution for institutional digital asset derivatives via optimized RFQ protocols, refining market microstructure](https://options.greeks.live/wp-content/uploads/2025/08/precision-rfq-protocol-engine-for-institutional-digital-asset-derivatives.jpg)

## Beyond Compliance a Unified Philosophy of Execution

The technical distinctions between MiFID II and FINRA, while operationally critical, point toward a more profound consideration for any global trading entity. The challenge is not simply to build two separate compliance machines, one for Europe and one for the United States. The real task is to synthesize the strengths of both philosophies into a single, coherent institutional approach to execution quality.

How can the data-driven transparency mandated by MiFID II inform the principles-based judgments required by FINRA? How can the rigorous governance framework central to the FINRA model provide a qualitative overlay to the quantitative analysis of MiFID II?

Viewing these regulations as isolated sets of constraints is a defensive posture. A more advanced perspective sees them as complementary components of a global execution intelligence system. The data infrastructure built for MiFID II can provide the quantitative backbone for the “regular and rigorous” reviews of the FINRA Best Execution Committee, transforming those discussions from subjective debates into data-informed strategic sessions. Conversely, the qualitative factors and governance discipline honed under the FINRA regime can provide the essential context that raw data alone often lacks, helping to explain anomalies and make more nuanced decisions about venue selection under MiFID II.

Ultimately, the question of which regime is “better” is irrelevant. The pertinent question for a sophisticated market participant is this ▴ How do we architect an operational system that leverages the prescriptive detail of one and the flexible judgment of the other to create a unified, global standard of execution that consistently delivers a superior outcome for the client? The answer lies not in compliance, but in synthesis.

![A sharp, teal blade precisely dissects a cylindrical conduit. This visualizes surgical high-fidelity execution of block trades for institutional digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-precision-execution-microstructure.jpg)

## Glossary

<a href="https://prime.greeks.live/area/financial-industry-regulatory-authority/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Abstract depiction of an advanced institutional trading system, featuring a prominent sensor for real-time price discovery and an intelligence layer. Visible circuitry signifies algorithmic trading capabilities, low-latency execution, and robust FIX protocol integration for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-prime-os-high-fidelity-rfq-protocols.jpg)

## Financial Industry Regulatory Authority

Meaning ▴ The Financial Industry Regulatory Authority, commonly known as FINRA, operates as the largest independent regulator for all securities firms conducting business with the public in the United States. </a><a href="https://prime.greeks.live/area/reasonable-diligence/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Sleek, intersecting planes, one teal, converge at a reflective central module. This visualizes an institutional digital asset derivatives Prime RFQ, enabling RFQ price discovery across liquidity pools](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-digital-asset-derivatives-rfq-engine-optimizing-institutional-liquidity-aggregation-and-best-execution.jpg)

## Reasonable Diligence

Meaning ▴ Reasonable Diligence denotes the systematic and prudent level of investigation and care an institutional participant is expected to undertake to identify, assess, and mitigate risks associated with financial transactions, market participants, and operational processes within the digital asset ecosystem. </a><a href="https://prime.greeks.live/area/execution-quality/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A central RFQ engine orchestrates diverse liquidity pools, represented by distinct blades, facilitating high-fidelity execution of institutional digital asset derivatives. Metallic rods signify robust FIX protocol connectivity, enabling efficient price discovery and atomic settlement for Bitcoin options](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-liquidity-orchestration.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/qualitative-factors/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![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)

## Qualitative Factors

Meaning ▴ Qualitative Factors constitute the non-numerical, contextual elements that significantly influence the assessment of digital asset derivatives, encompassing aspects such as regulatory stability, counterparty reputation, technological robustness of underlying protocols, and geopolitical climate. </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">
![Textured institutional-grade platform presents RFQ inquiry disk amidst liquidity fragmentation. Singular price discovery point floats](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-rfq-execution-microstructure-prime-os-best-execution.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-can-pre-trade-analytics-differentiate-between-high-quality-and-low-quality-quotes-in-an-rfq-auction/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A precision mechanism with a central circular core and a linear element extending to a sharp tip, encased in translucent material. This symbolizes an institutional RFQ protocol's market microstructure, enabling high-fidelity execution and price discovery for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/precision-engineered-institutional-digital-asset-derivatives-rfq-execution-engine-microstructure-facilitating-optimal-price-discovery-and-best-execution.jpg)

## Execution Quality Obtained

Pre-trade analytics differentiate quotes by systematically scoring counterparty reliability and predicting execution quality beyond price. </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 polished glass sphere reflecting diagonal beige, black, and cyan bands, rests on a metallic base against a dark background. This embodies RFQ-driven Price Discovery and High-Fidelity Execution for Digital Asset Derivatives, optimizing Market Microstructure and mitigating Counterparty Risk via Prime RFQ Private Quotation](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-best-execution-protocol.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/area/best-execution-committee/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A symmetrical, multi-faceted structure depicts an institutional Digital Asset Derivatives execution system. Its central crystalline core represents high-fidelity execution and atomic settlement](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-engine-microstructure.jpg)

## Best Execution Committee

Meaning ▴ The Best Execution Committee functions as a formal governance body within an institutional trading framework, specifically mandated to define, implement, and continuously monitor policies and procedures ensuring optimal trade execution across all asset classes, including institutional digital asset derivatives. </a><a href="https://prime.greeks.live/area/transaction-cost-analysis/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A segmented rod traverses a multi-layered spherical structure, depicting a streamlined Institutional RFQ Protocol. This visual metaphor illustrates optimal Digital Asset Derivatives price discovery, high-fidelity execution, and robust liquidity pool integration, minimizing slippage and ensuring atomic settlement for multi-leg spreads within a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-flow-1.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/rts-27/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A metallic circular interface, segmented by a prominent 'X' with a luminous central core, visually represents an institutional RFQ protocol. This depicts precise market microstructure, enabling high-fidelity execution for multi-leg spread digital asset derivatives, optimizing capital efficiency across diverse liquidity pools](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-digital-asset-derivatives-rfq-execution-microstructure.jpg)

## Rts 27

Meaning ▴ RTS 27 mandates that investment firms and market operators publish detailed data on the quality of execution of transactions on their venues. </a><a href="https://prime.greeks.live/area/finra-best-execution/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A stylized RFQ protocol engine, featuring a central price discovery mechanism and a high-fidelity execution blade. Translucent blue conduits symbolize atomic settlement pathways for institutional block trades within a Crypto Derivatives OS, ensuring capital efficiency and best execution](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-rfq-execution-for-digital-asset-derivatives.jpg)

## Finra Best Execution

Meaning ▴ FINRA Best Execution represents a regulatory obligation for broker-dealers to exercise reasonable diligence in ascertaining the best market for a security and to execute customer orders at the most favorable terms reasonably available under prevailing market conditions. </a><a href="https://prime.greeks.live/question/what-are-the-key-differences-in-best-execution-obligations-for-rfqs-under-mifid-i-vs-mifid-ii/?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)

## Under Mifid

MiFID II transformed RFQ best execution from a procedural policy into a data-driven, provable mandate for optimal outcomes. </a><a href="https://prime.greeks.live/area/rts-28/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A metallic rod, symbolizing a high-fidelity execution pipeline, traverses transparent elements representing atomic settlement nodes and real-time price discovery. It rests upon distinct institutional liquidity pools, reflecting optimized RFQ protocols for crypto derivatives trading across a complex volatility surface within Prime RFQ market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-trade-execution-pipeline-optimizing-rfq-protocols-for-best-execution-and-capital-efficiency.jpg)

## Rts 28

Meaning ▴ RTS 28 refers to Regulatory Technical Standard 28 under MiFID II, which mandates investment firms and market operators to publish annual reports on the quality of execution of transactions on trading venues and for financial instruments. </a><a href="https://prime.greeks.live/question/how-should-a-firms-best-execution-committee-quantitatively-evaluate-and-compare-different-execution-venues/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A polished, dark teal institutional-grade mechanism reveals an internal beige interface, precisely deploying a metallic, arrow-etched component. This signifies high-fidelity execution within an RFQ protocol, enabling atomic settlement and optimized price discovery for institutional digital asset derivatives and multi-leg spreads, ensuring minimal slippage and robust capital efficiency](https://options.greeks.live/wp-content/uploads/2025/08/quantitative-finance-driven-rfq-workflow-for-best-execution-in-digital-assets.jpg)

## Execution Committee

A firm's Best Execution Committee must deploy a multi-factor quantitative model to score venues on price, cost, and risk. </a><a href="https://prime.greeks.live/area/price-improvement/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Sharp, intersecting geometric planes in teal, deep blue, and beige form a precise, pointed leading edge against darkness. This signifies High-Fidelity Execution for Institutional Digital Asset Derivatives, reflecting complex Market Microstructure and Price Discovery](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-digital-asset-derivatives-rfq-market-microstructure-2.jpg)

## Price Improvement

Meaning ▴ Price improvement denotes the execution of a trade at a more advantageous price than the prevailing National Best Bid and Offer (NBBO) at the moment of order submission. </a><a href="https://prime.greeks.live/area/best-execution/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A precision-engineered, multi-layered system visually representing institutional digital asset derivatives trading. Its interlocking components symbolize robust market microstructure, RFQ protocol integration, and high-fidelity execution](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-high-fidelity-execution-4.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/smart-order-routing/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek Execution Management System diagonally spans segmented Market Microstructure, representing Prime RFQ for Institutional Grade Digital Asset Derivatives. It rests on two distinct Liquidity Pools, one facilitating RFQ Block Trade Price Discovery, the other a Dark Pool for Private Quotation](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-execution-optimizing-rfq-protocols-across-segmented-liquidity-pools.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>

**Tags:** [Regulatory Compliance](https://options.greeks.live/area/regulatory-compliance/), [Market Microstructure](https://options.greeks.live/area/market-microstructure/), [Qualitative Factors](https://options.greeks.live/area/qualitative-factors/), [European Union](https://options.greeks.live/area/european-union/), [FINRA Best Execution](https://options.greeks.live/area/finra-best-execution/), [Best Execution](https://options.greeks.live/area/best-execution/)	

## Discover More

- 
### [What Are the Specific Governance Responsibilities for Best Execution under MiFID II?](https://options.greeks.live/question/what-are-the-specific-governance-responsibilities-for-best-execution-under-mifid-ii/)
![A sleek blue and white mechanism with a focused lens symbolizes Pre-Trade Analytics for Digital Asset Derivatives. A glowing turquoise sphere represents a Block Trade within a Liquidity Pool, demonstrating High-Fidelity Execution via RFQ protocol for Price Discovery in Dark Pool Market Microstructure.](https://options.greeks.live/wp-content/uploads/2025/07/advanced-institutional-digital-asset-derivatives-rfq-execution-system-for-optimal-price-discovery-and-high-fidelity-execution.jpg)

MiFID II best execution governance mandates a data-driven, systematic framework to demonstrably secure optimal client outcomes.

- 
### [How Does a Best Execution Committee Document Its Order Routing Decisions?](https://options.greeks.live/question/how-does-a-best-execution-committee-document-its-order-routing-decisions/)
![A central metallic mechanism, an institutional-grade Prime RFQ, anchors four colored quadrants. These symbolize multi-leg spread components and distinct liquidity pools. Diagonal arms depict high-fidelity execution pathways, illustrating optimized RFQ protocol processing for digital asset derivatives within market microstructure.](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-digital-asset-derivatives-rfq-engine-prime-os.jpg)

A Best Execution Committee's documentation transforms fiduciary duty into a quantifiable, auditable, and continuously optimized system for routing client orders.

- 
### [What Are the Key Differences in Best Execution Obligations between the US and Europe?](https://options.greeks.live/question/what-are-the-key-differences-in-best-execution-obligations-between-the-us-and-europe/)
![Sleek metallic components with teal luminescence precisely intersect, symbolizing an institutional-grade Prime RFQ. This represents multi-leg spread execution for digital asset derivatives via RFQ protocols, ensuring high-fidelity execution, optimal price discovery, and capital efficiency.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-best-execution-system.jpg)

US best execution emphasizes a flexible, principles-based "reasonable diligence," while Europe's MiFID II mandates a prescriptive, data-driven "all sufficient steps" approach.

- 
### [How Does MiFID II Define Best Execution Differently from FINRA?](https://options.greeks.live/question/how-does-mifid-ii-define-best-execution-differently-from-finra/)
![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)

MiFID II mandates a provable, data-centric system of "all sufficient steps," while FINRA requires a principles-based "reasonable diligence."

- 
### [What Are the Regulatory Differences in Proving Best Execution under MiFID II and FINRA Rules?](https://options.greeks.live/question/what-are-the-regulatory-differences-in-proving-best-execution-under-mifid-ii-and-finra-rules/)
![A sleek, futuristic institutional grade platform with a translucent teal dome signifies a secure environment for private quotation and high-fidelity execution. A dark, reflective sphere represents an intelligence layer for algorithmic trading and price discovery within market microstructure, ensuring capital efficiency for digital asset derivatives.](https://options.greeks.live/wp-content/uploads/2025/07/precision-rfq-execution-for-institutional-digital-asset-derivatives-1.jpg)

MiFID II demands public, quantitative proof of "all sufficient steps," while FINRA requires internal, "reasonable diligence" reviews.

- 
### [What Are the Key Differences in Best Execution Requirements between MiFID II and Other Regulatory Regimes?](https://options.greeks.live/question/what-are-the-key-differences-in-best-execution-requirements-between-mifid-ii-and-other-regulatory-regimes/)
![A transparent sphere, representing a digital asset option, rests on an aqua geometric RFQ execution venue. This proprietary liquidity pool integrates with an opaque institutional grade infrastructure, depicting high-fidelity execution and atomic settlement within a Principal's operational framework for Crypto Derivatives OS.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-system-prime-os.jpg)

MiFID II mandates a prescriptive, data-driven process to prove best execution, while other regimes focus on justifying the reasonableness of the outcome.

- 
### [How Do Regulatory Frameworks like MiFID II Influence Counterparty Selection and Best Execution Policies?](https://options.greeks.live/question/how-do-regulatory-frameworks-like-mifid-ii-influence-counterparty-selection-and-best-execution-policies/)
![A precision mechanism, symbolizing an algorithmic trading engine, centrally mounted on a market microstructure surface. Lens-like features represent liquidity pools and an intelligence layer for pre-trade analytics, enabling high-fidelity execution of institutional grade digital asset derivatives via RFQ protocols within a Principal's operational framework.](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-protocol-microstructure.jpg)

MiFID II mandates a systemic shift, transforming counterparty selection into a data-driven process governed by quantifiable best execution.

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

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

- 
### [What Are the Regulatory Implications of Using Complex Smart Order Routers?](https://options.greeks.live/question/what-are-the-regulatory-implications-of-using-complex-smart-order-routers/)
![A dynamic visual representation of an institutional trading system, featuring a central liquidity aggregation engine emitting a controlled order flow through dedicated market infrastructure. This illustrates high-fidelity execution of digital asset derivatives, optimizing price discovery within a private quotation environment for block trades, ensuring capital efficiency.](https://options.greeks.live/wp-content/uploads/2025/07/principal-os-driving-high-fidelity-execution-for-digital-asset-derivatives-through-optimized-rfq-protocols-and-smart-order-routing.jpg)

Complex SORs demand a robust governance framework to align their automated, high-speed decision-making with global best execution mandates.

---

## 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 Differ from FINRA on Best Execution Requirements?",
            "item": "https://options.greeks.live/question/how-does-mifid-ii-differ-from-finra-on-best-execution-requirements/"
        }
    ]
}
```

```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-differ-from-finra-on-best-execution-requirements/"
    },
    "headline": "How Does MiFID II Differ from FINRA on Best Execution Requirements? \u25b4 Question",
    "description": "MiFID II mandates a prescriptive, data-driven proof of process, while FINRA requires a principles-based, documented defense of reasonable diligence. \u25b4 Question",
    "url": "https://options.greeks.live/question/how-does-mifid-ii-differ-from-finra-on-best-execution-requirements/",
    "datePublished": "2025-08-07T07:29:21+00:00",
    "dateModified": "2025-08-07T07:29:27+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/prime-os-rfq-protocols-high-fidelity-digital-asset-execution.jpg",
        "caption": "This image abstracts the precise interaction of an RFQ protocol with a liquidity pool for institutional digital asset derivatives. The central disk signifies a deep order book for Bitcoin options or Ethereum futures, while the intersecting bar represents smart order routing of a block trade. This visual metaphor encapsulates high-fidelity execution within market microstructure, driven by algorithmic trading strategies. It highlights Prime RFQ capabilities for atomic settlement, minimizing slippage and ensuring best execution."
    },
    "keywords": [
        "Best Execution",
        "Best Execution Committee",
        "European Union",
        "Execution Quality",
        "Execution Venues",
        "Financial Industry Regulatory Authority",
        "FINRA Best Execution",
        "FINRA Rule 5310",
        "Market Microstructure",
        "MiFID II",
        "Price Improvement",
        "Qualitative Factors",
        "Reasonable Diligence",
        "Regulatory Compliance",
        "Regulatory Reporting",
        "RTS 27",
        "RTS 28",
        "Smart Order Routing",
        "Systematic Internaliser",
        "Transaction Cost Analysis"
    ]
}
```

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


---

**Original URL:** https://options.greeks.live/question/how-does-mifid-ii-differ-from-finra-on-best-execution-requirements/
