# How Does SI Price Improvement Affect Best Execution Obligations? ▴ Question

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

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## Concept

Your question regarding the interplay between [Systematic Internaliser](https://prime.greeks.live/area/systematic-internaliser/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (SI) [price improvement](https://prime.greeks.live/area/price-improvement/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) and best execution obligations cuts to the core of modern market architecture. It moves past the theoretical to the practical reality of institutional order flow. You are asking how a specific, controlled execution mechanism satisfies a broad, principles-based regulatory mandate. The answer resides in understanding the SI, not as a mere trading venue, but as a deliberate system designed for a specific purpose within the complex network of European financial markets.

A Systematic Internaliser is an investment firm that uses its own capital to execute client orders on a frequent, systematic, and substantial basis outside of a traditional lit exchange. This is a principal-based model. The SI becomes the counterparty to the client’s trade. This structure is foundational.

It allows the SI to internalise order flow, creating a contained liquidity environment. Within this environment, the SI has a unique capability ▴ the capacity to offer price improvement.

Price improvement is the execution of a client’s order at a price superior to the European Best Bid and Offer (EBBO) available on public exchanges at that moment. For a client buying a security, the [execution price](https://prime.greeks.live/area/execution-price/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) is lower than the best offer. For a client selling, the price is higher than the best bid. This is possible because the SI is acting as principal.

It is not routing an order to a lit market but is instead fulfilling the order from its own book, giving it discretion over the execution price within certain regulatory bounds. The prices an SI quotes must still reflect prevailing market conditions, ensuring they are tethered to the reality of the broader market.

![A complex central mechanism, akin to an institutional RFQ engine, displays intricate internal components representing market microstructure and algorithmic trading. Transparent intersecting planes symbolize optimized liquidity aggregation and high-fidelity execution for digital asset derivatives, ensuring capital efficiency and atomic settlement](https://options.greeks.live/wp-content/uploads/2025/07/institutional-rfq-engine-optimizing-digital-asset-derivative-execution.jpg)

## What Is the Core Function of an SI in Market Structure?

The primary function of an SI is to provide a reliable and efficient source of liquidity for its clients, often for trades that might be challenging to execute on a lit exchange without causing [market impact](https://prime.greeks.live/area/market-impact/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). By internalising orders, an SI can absorb larger trades without signaling the client’s intent to the wider market, thereby reducing the potential for adverse price movement before the order is fully executed. This function is a direct response to the institutional need for discreet and efficient execution.

The regulatory framework under [MiFID II](https://prime.greeks.live/area/mifid-ii/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) formalised the SI regime, expanding its scope beyond equities to other asset classes. This was a deliberate architectural choice by regulators. The goal was to bring more of the vast Over-the-Counter (OTC) market into a regulated and transparent framework. By creating specific obligations for SIs, such as pre-trade quote transparency for liquid instruments, regulators sought to ensure that this internalisation process did not detract from the price discovery function of public exchanges.

> The SI model provides a structural advantage for executing client orders with minimal market impact by using the firm’s own capital.

[Best execution](https://prime.greeks.live/area/best-execution/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), under Article 27 of MiFID II, is a comprehensive obligation. It requires firms to take all sufficient steps to obtain the best possible result for their clients. This is a multi-faceted analysis that includes not only price but also costs, speed, likelihood of execution, settlement, size, and the nature of the order.

The mandate is clear ▴ a firm must have a robust process for evaluating and selecting execution venues to achieve the optimal outcome for its clients. It is within this context that the role of SI price improvement becomes a critical component of the evidentiary trail.

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## Strategy

The strategic integration of a Systematic Internaliser into a firm’s execution framework is a deliberate decision centered on leveraging a controlled liquidity environment to satisfy the multi-dimensional requirements of best execution. The strategy is not simply about finding a better price. It is about constructing a defensible and superior execution process that can be empirically validated. Offering price improvement is a key tactic within this broader strategy, serving as a powerful, quantifiable data point in the best execution analysis.

For a broker-dealer operating as an SI, the primary strategic objective is to become a preferred liquidity destination for its clients. By consistently providing executions at prices better than the public market benchmark, the SI creates a compelling value proposition. This attracts order flow, which in turn allows the SI to have a more comprehensive view of market interest and to manage its own inventory more effectively.

It is a symbiotic relationship. The client receives a better execution price, and the SI benefits from the internalised flow.

![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)

## How Does Price Improvement Evidence Best Execution?

The best execution obligation requires firms to demonstrate, with data, that their chosen execution method was the most appropriate for a given order. Price is a primary, though not exclusive, factor in this assessment. When an SI provides price improvement, it generates a clear, auditable record of a tangible benefit delivered to the client.

This data point can be directly compared against the prevailing EBBO at the time of the trade. This quantitative evidence is a cornerstone of the best execution defense.

However, a sophisticated best execution strategy looks beyond the price. The use of an SI can also be justified based on other execution factors:

- **Likelihood of Execution** ▴ For large orders or trades in less liquid instruments, routing to a lit market could result in partial fills or failed execution. An SI, by committing its own capital, can offer a higher certainty of execution for the full size of the order.

- **Minimizing Market Impact** ▴ Executing large orders on a public exchange can signal trading intent, leading to adverse selection and price slippage. The discreet nature of an SI execution minimizes this information leakage, preserving the quality of the execution for the remainder of the order and for future trades.

- **Speed of Execution** ▴ By internalising the trade, an SI can provide immediate execution without the latency involved in routing an order to an external venue, processing, and receiving a confirmation.

- **Cost** ▴ While the explicit commission may be one component, the total cost of execution includes implicit costs like market impact. By improving the price and reducing market impact, an SI can lower the total cost of trading for the client.

> A robust best execution policy leverages SI price improvement as a key quantitative metric while also documenting qualitative benefits like reduced market impact.

The following table illustrates how different execution factors might be evaluated when choosing between an SI and a lit market for a large institutional order.

| Execution Factor | Systematic Internaliser (SI) | Public Lit Exchange |
| --- | --- | --- |
| Price | Potential for price improvement over EBBO. Price is firm for the quoted size. | Execution at the prevailing bid or offer. Price is subject to fluctuation. |
| Market Impact | Low. The trade is not displayed publicly, preventing information leakage. | High. The order is visible on the book, which can alert other participants and cause adverse price movement. |
| Likelihood of Execution | High. The SI commits its own capital to fill the order at the quoted size. | Variable. Depends on available liquidity at multiple price levels on the order book. Partial fills are possible. |
| Speed | High. Execution is immediate upon acceptance of the quote. | Lower. Involves routing to the exchange and working the order. |

A firm’s strategy must also account for regulatory oversight. MiFID II requires firms to have a clear order [execution policy](https://prime.greeks.live/area/execution-policy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) that explains how they will achieve best execution for their clients. This policy must detail the different venues and factors considered. When a firm routes a significant portion of its flow to its own SI, it must be prepared to justify this decision.

The consistent delivery of price improvement, coupled with benefits across other [execution quality](https://prime.greeks.live/area/execution-quality/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) factors, forms the foundation of this justification. The firm must also conduct regular, rigorous reviews of its execution quality, comparing the performance of its SI against other available venues. This is where [Transaction Cost Analysis](https://prime.greeks.live/area/transaction-cost-analysis/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (TCA) becomes essential.

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## Execution

The operational execution of a best execution policy that incorporates a Systematic Internaliser is a data-intensive process. It requires a robust technological architecture for capturing, analyzing, and reporting on execution quality. The simple act of receiving price improvement is the outcome of a complex system of pre-trade transparency, order handling, and post-trade analysis. The focus of execution is on creating an objective, repeatable, and auditable process that proves the firm is meeting its obligations.

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## The Operational Playbook for SI Execution

A firm’s operational playbook for handling orders via an SI involves several distinct stages, each with its own set of procedures and controls. This ensures that the decision to use the SI and the quality of the resulting execution can be systematically evaluated.

- **Order Reception and Pre-Trade Analysis** ▴ Upon receiving a client order, the firm’s smart order router (SOR) or trading desk must perform a pre-trade analysis. This involves capturing the current EBBO, assessing the liquidity on various lit markets, and considering the characteristics of the order (size, security, client instructions).

- **Venue Selection Logic** ▴ The SOR logic must be programmed to evaluate the potential outcomes of routing the order to different venues, including the firm’s own SI. If the SI is quoting prices that represent an improvement over the EBBO, the SOR may prioritize routing the order to the SI. This logic must be documented and regularly reviewed.

- **Execution and Data Capture** ▴ When an order is executed on the SI, a rich set of data must be captured at the moment of execution. This includes the execution price, the size, the time of the trade, and a snapshot of the EBBO on the reference market at that precise moment. This data is the raw material for the best execution analysis.

- **Post-Trade Transaction Cost Analysis (TCA)** ▴ The execution data is fed into a TCA system. The primary calculation is the amount of price improvement received. This is calculated as the difference between the execution price and the relevant bid or offer, multiplied by the size of the trade. The TCA report will compare this execution against benchmarks, such as the volume-weighted average price (VWAP) for the day.

- **Monitoring and Reporting** ▴ The firm must produce regular reports (often quarterly) that summarize its execution quality. These reports, mandated by [RTS 27](https://prime.greeks.live/area/rts-27/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (for venues) and [RTS 28](https://prime.greeks.live/area/rts-28/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (for firms), provide transparency on the top execution venues used and the quality of execution achieved. The data on price improvement from the SI is a critical input to these reports.

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## Quantitative Modeling and Data Analysis

The core of the execution process is the quantitative analysis of trade data. The following table provides a simplified example of how price improvement would be calculated and presented in a TCA report for a series of buy orders.

| Trade ID | Security | Quantity | Reference Price (EBBO Ask) | SI Execution Price | Price Improvement per Share | Total Price Improvement (€) |
| --- | --- | --- | --- | --- | --- | --- |
| T12345 | ABC Corp | 10,000 | €50.25 | €50.245 | €0.005 | €50.00 |
| T12346 | XYZ Inc | 5,000 | €100.10 | €100.09 | €0.010 | €50.00 |
| T12347 | ABC Corp | 20,000 | €50.26 | €50.256 | €0.004 | €80.00 |
| T12348 | QRS Ltd | 15,000 | €25.50 | €25.50 | €0.000 | €0.00 |

In this example, the firm can demonstrate that for three out of four trades, it achieved a better price for the client than was publicly available. For trade T12348, while there was no price improvement, the execution at the market price could still be justified based on other factors like speed or certainty of execution. A comprehensive TCA platform would analyze thousands of such trades, providing statistical summaries of average price improvement, the percentage of orders improved, and comparisons across different SIs and other venues.

> Effective execution relies on a continuous feedback loop of data capture, quantitative analysis, and process refinement.

This quantitative rigor is what transforms the concept of best execution from a principle into a practice. It provides the firm, its clients, and its regulators with a transparent and evidence-based account of its performance. The ability of a Systematic Internaliser to consistently generate positive price improvement data is a powerful tool in demonstrating a commitment to this practice.

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## References

- Deutsche Bank. (2018). _MiFID II ▴ Systematic Internalisers ▴ Tick Sizes and Price Improvement ▴ Responses to ESMA Consultation_. Deutsche Bank Autobahn.

- Deutsche Bank. (2017). _MiFID II ▴ Systematic Internalisers ▴ Tick Sizes and Price Improvement_. Deutsche Bank Autobahn.

- Rapid Addition. (n.d.). _The Evolving Role of Systematic Internalisation Under MiFID II_. Retrieved from Rapid Addition website.

- SmartStream Technologies. (n.d.). _Systematic Internalisation Under MiFID II ▴ What’s Needed Now_. SmartStream Technologies.

- International Capital Market Association. (2017). _MiFID II implementation ▴ the Systematic Internaliser regime_. ICMA.

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## Reflection

The integration of Systematic Internaliser liquidity into your execution policy represents a critical architectural decision. The data clearly shows that price improvement is a powerful metric for substantiating best execution claims. The true strategic question, however, moves beyond simple validation. How does your firm’s monitoring framework actively compare the total cost of execution, including the implicit value of reduced market impact from an SI, against the explicit price improvement offered by other venues?

Is your TCA process calibrated to not only report on past performance but also to dynamically refine your smart [order routing](https://prime.greeks.live/area/order-routing/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) logic for the future? The regulations provide the blueprint for compliance. The ultimate competitive advantage is found in building an execution system that is not merely compliant, but intelligent.

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## Glossary

<a href="https://prime.greeks.live/area/systematic-internaliser/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
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## Systematic Internaliser

Meaning ▴ A Systematic Internaliser (SI) is a financial institution executing client orders against its own capital on an organized, frequent, systematic basis off-exchange. </a><a href="https://prime.greeks.live/area/price-improvement/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A precision-engineered, multi-layered system component, symbolizing the intricate market microstructure of institutional digital asset derivatives. Two distinct probes represent RFQ protocols for price discovery and high-fidelity execution, integrating latent liquidity and pre-trade analytics within a robust Prime RFQ framework, ensuring best execution](https://options.greeks.live/wp-content/uploads/2025/08/digital-asset-derivatives-rfq-protocols-high-fidelity-execution.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/execution-price/?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)

## Execution Price

Meaning ▴ The Execution Price represents the definitive, realized price at which a specific order or trade leg is completed within a financial market system. </a><a href="https://prime.greeks.live/area/market-impact/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A precise, multi-faceted geometric structure represents institutional digital asset derivatives RFQ protocols. Its sharp angles denote high-fidelity execution and price discovery for multi-leg spread strategies, symbolizing capital efficiency and atomic settlement within a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-derivatives-rfq-execution-microstructure-framework.jpg)

## Market Impact

Meaning ▴ Market Impact refers to the observed change in an asset's price resulting from the execution of a trading order, primarily influenced by the order's size relative to available liquidity and prevailing market conditions. </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 RFQ engine module, its spherical lens observing market microstructure and reflecting implied volatility. This Prime RFQ component ensures high-fidelity execution for institutional digital asset derivatives, enabling private quotation for block trades](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-for-best-execution-protocol.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/best-execution/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
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## 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-policy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, institutional-grade Prime RFQ component features intersecting transparent blades with a glowing core. This visualizes a precise RFQ execution engine, enabling high-fidelity execution and dynamic price discovery for digital asset derivatives, optimizing market microstructure for capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-digital-asset-derivatives-rfq-engine-for-best-execution-microstructure.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/transaction-cost-analysis/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
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## 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/execution-quality/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
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## 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/rts-27/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
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## 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/rts-28/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
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## 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/area/order-routing/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
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## Order Routing

Meaning ▴ Order Routing is the automated process by which a trading order is directed from its origination point to a specific execution venue or liquidity source. </a>

**Tags:** [Regulatory Reporting](https://options.greeks.live/area/regulatory-reporting/), [Execution Policy](https://options.greeks.live/area/execution-policy/), [RTS 27](https://options.greeks.live/area/rts-27/), [Liquidity Provision](https://options.greeks.live/area/liquidity-provision/), [Price Improvement](https://options.greeks.live/area/price-improvement/), [Market Impact](https://options.greeks.live/area/market-impact/)	

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### [How Do Systematic Internalisers and Dark Pools Fit into a Best Execution Framework under MiFID II?](https://options.greeks.live/question/how-do-systematic-internalisers-and-dark-pools-fit-into-a-best-execution-framework-under-mifid-ii/)
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A Systematic Internaliser reframes a firm's duties by shifting focus to quantitative validation of execution quality and precise, automated allocation of reporting obligations.

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![A precision-engineered blue mechanism, symbolizing a high-fidelity execution engine, emerges from a rounded, light-colored liquidity pool component, encased within a sleek teal institutional-grade shell. This represents a Principal's operational framework for digital asset derivatives, demonstrating algorithmic trading logic and smart order routing for block trades via RFQ protocols, ensuring atomic settlement.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-crypto-derivatives-os-core-algorithmic-execution-engine.jpg)

Firms prove best execution without RTS 27 by building internal systems to analyze a mosaic of direct market and trade data using TCA.

- 
### [How Can Firms Use RTS 27 and RTS 28 Data to Gain a Competitive Advantage in the Market?](https://options.greeks.live/question/how-can-firms-use-rts-27-and-rts-28-data-to-gain-a-competitive-advantage-in-the-market/)
![A sleek, abstract system interface with a central spherical lens representing real-time Price Discovery and Implied Volatility analysis for institutional Digital Asset Derivatives. Its precise contours signify High-Fidelity Execution and robust RFQ protocol orchestration, managing latent liquidity and minimizing slippage for optimized Alpha Generation.](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-institutional-digital-asset-derivatives-execution-via-optimized-rfq-protocols-enhancing-market-microstructure.jpg)

Firms gain advantage by transforming RTS 27/28 compliance data into strategic intelligence for superior execution.

- 
### [What Are the Best Execution Requirements for Systematic Internalisers under MiFID II?](https://options.greeks.live/question/what-are-the-best-execution-requirements-for-systematic-internalisers-under-mifid-ii/)
![The abstract visual depicts a sophisticated, transparent execution engine showcasing market microstructure for institutional digital asset derivatives. Its central matching engine facilitates RFQ protocol execution, revealing internal algorithmic trading logic and high-fidelity execution pathways. This metaphor underscores capital efficiency and best execution within a Prime RFQ framework.](https://options.greeks.live/wp-content/uploads/2025/07/principal-rfq-engine-for-institutional-digital-asset-derivatives.jpg)

Systematic Internaliser best execution requires a verifiable, data-driven framework where principal trading is architected to deliver superior client outcomes.

- 
### [How Can an Asset Manager Quantitatively Prove Best Execution When Using a Systematic Internalisers?](https://options.greeks.live/question/how-can-an-asset-manager-quantitatively-prove-best-execution-when-using-a-systematic-internalisers/)
![Interlocking transparent and opaque geometric planes on a dark surface. This abstract form visually articulates the intricate Market Microstructure of Institutional Digital Asset Derivatives, embodying High-Fidelity Execution through advanced RFQ protocols. It symbolizes Aggregated Inquiry, optimal Liquidity Pool access, and Atomic Settlement within a Principal OS.](https://options.greeks.live/wp-content/uploads/2025/07/geometric-abstraction-of-institutional-digital-asset-derivatives-market-microstructure-driving-high-fidelity-execution-via-principal-rfq-protocols-and-optimal-liquidity-aggregation.jpg)

An asset manager proves best execution with SIs via a TCA framework that benchmarks every trade against synchronous market data.

- 
### [What Are the Core Data Points Required to Prove Best Execution for Regulators?](https://options.greeks.live/question/what-are-the-core-data-points-required-to-prove-best-execution-for-regulators/)
![A complex sphere, split blue implied volatility surface and white, balances on a beam. A transparent sphere acts as fulcrum. This illustrates institutional digital asset derivative RFQ execution, enabling optimal price discovery, leveraging Prime RFQ for high-fidelity execution across fragmented market microstructure and dark liquidity pools.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-balancing-liquidity.jpg)

Proving best execution requires a verifiable data narrative demonstrating optimal client outcomes based on price, cost, speed, and likelihood of execution.

- 
### [How Does MiFID II Differentiate Best Execution for RFQ and CLOB Systems?](https://options.greeks.live/question/how-does-mifid-ii-differentiate-best-execution-for-rfq-and-clob-systems/)
![Two smooth, teal spheres, representing institutional liquidity pools, precisely balance a metallic object, symbolizing a block trade executed via RFQ protocol. This depicts high-fidelity execution, optimizing price discovery and capital efficiency within a Principal's operational framework for digital asset derivatives.](https://options.greeks.live/wp-content/uploads/2025/07/precision-execution-bridging-institutional-liquidity-pools-via-rfq-protocol-for-optimized-digital-asset-derivatives-price-discovery.jpg)

MiFID II mandates a bifurcated best execution analysis, assessing CLOBs on post-trade data against public benchmarks and RFQs on the integrity of the private price discovery process.

- 
### [How Do Rts 27 and Rts 28 Reports Provide Evidence of Best Execution for Anonymous Rfqs?](https://options.greeks.live/question/how-do-rts-27-and-rts-28-reports-provide-evidence-of-best-execution-for-anonymous-rfqs/)
![Sharp, transparent, teal structures and a golden line intersect a dark void. This symbolizes market microstructure for institutional digital asset derivatives. Angles represent high-fidelity execution via RFQ protocols. Granular specks depict tick data informing price discovery within liquidity pools for alpha generation.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-precision-execution-leveraging-granular-market-microstructure-intelligence.jpg)

RTS 27/28 reports provide a data framework to benchmark private RFQ executions against public market quality, evidencing best execution.

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---

**Original URL:** https://options.greeks.live/question/how-does-si-price-improvement-affect-best-execution-obligations/
