# How Does the CAT Reporting Framework for RFQs Impact Liquidity Discovery for Institutional Traders? ▴ Question

**Published:** 2025-07-30
**Categories:** Question

---

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

![A curved grey surface anchors a translucent blue disk, pierced by a sharp green financial instrument and two silver stylus elements. This visualizes a precise RFQ protocol for institutional digital asset derivatives, enabling liquidity aggregation, high-fidelity execution, price discovery, and algorithmic trading within market microstructure via a Principal's operational framework](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-high-fidelity-execution-via-rfq-protocols-optimizing-market-microstructure-and-price-discovery.jpg)

## Concept

The [Consolidated Audit Trail](https://prime.greeks.live/area/consolidated-audit-trail/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (CAT) represents a fundamental re-architecting of the market’s information substrate. For institutional traders, its introduction moves the request-for-quote ([RFQ](https://prime.greeks.live/area/rfq/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite)) protocol from a contained, bilateral communication channel to a fully recorded component of the national market system. Your operational reality has been one where discretion in sourcing block liquidity was paramount, conducted through trusted counterparty relationships. CAT systematically pierces that veil of privacy by design, capturing the entire lifecycle of a quote solicitation and response for regulatory scrutiny.

This framework was engineered to provide regulators with a comprehensive view of all trading activity to surveil markets more effectively. The inclusion of previously off-book interactions like RFQs into this system stems from a regulatory imperative to monitor for patterns and behaviors that could indicate market manipulation or build systemic risk. Every [quote request](https://prime.greeks.live/question/what-are-the-core-differences-between-a-request-for-quote-and-a-request-for-market/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), modification, and response is now a data point in the largest securities transaction database ever created. The system does not merely log the executed trade; it records the entire negotiation process, transforming the ephemeral dialogue of price discovery into a permanent, analyzable record.

> The CAT framework transforms discreet RFQ negotiations into a permanent, regulator-accessible data trail, fundamentally altering the nature of institutional liquidity discovery.

![Two sleek, distinct colored planes, teal and blue, intersect. Dark, reflective spheres at their cross-points symbolize critical price discovery nodes](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-multi-leg-execution-liquidity.jpg)

## What Is the True Scope of RFQ Reporting under CAT?

The reporting mandate extends far beyond the final execution. It encompasses the granular events that constitute the price discovery process itself. The [CAT NMS Plan](https://prime.greeks.live/area/cat-nms-plan/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) specifies the reporting of events for both the solicitor and the responder in an RFQ negotiation. This includes the initial quote request, the responses from potential counterparties, and any modifications to the quote.

Each of these events must be time-stamped with precision and linked together via a unique identifier, the [RFQID](https://prime.greeks.live/area/rfqid/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). This creates a complete, time-sequenced record of the negotiation, from initiation to completion, available for regulatory review. The operational challenge lies in ensuring that internal systems can capture and report these interaction data points with the accuracy and timeliness the rules demand.

![A precise metallic and transparent teal mechanism symbolizes the intricate market microstructure of a Prime RFQ. It facilitates high-fidelity execution for institutional digital asset derivatives, optimizing RFQ protocols for private quotation, aggregated inquiry, and block trade management, ensuring best execution](https://options.greeks.live/wp-content/uploads/2025/07/advanced-principal-trading-systems-driving-high-fidelity-institutional-digital-asset-derivatives-rfq-execution-protocols.jpg)

## The Architectural Shift from Private Dialogue to Systemic Record

The core change is one of data ontology. An RFQ was previously a private conversation, its data exhaust confined to the systems of the two counterparties. Under the CAT framework, these conversations are re-classified as reportable market events. This imposes a new layer of systemic reality onto the protocol.

The data is no longer just operational; it is now regulatory. This shift has profound implications for how liquidity is sourced, priced, and transacted. The very act of asking for a price now generates a data footprint visible to every U.S. securities regulator, a structural change that reshapes the strategic landscape for any institution executing large or illiquid orders.

![A translucent teal layer overlays a textured, lighter gray curved surface, intersected by a dark, sleek diagonal bar. This visually represents the market microstructure for institutional digital asset derivatives, where RFQ protocols facilitate high-fidelity execution](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-derivatives-rfq-protocols-driving-optimal-execution.jpg)

![Abstract depiction of an institutional digital asset derivatives execution system. A central market microstructure wheel supports a Prime RFQ framework, revealing an algorithmic trading engine for high-fidelity execution of multi-leg spreads and block trades via advanced RFQ protocols, optimizing capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-prime-os-rfq-execution-system-1.jpg)

## Strategy

The integration of RFQ data into the Consolidated Audit Trail necessitates a strategic recalibration for institutional traders. The primary value of the RFQ protocol has always been its discretion, allowing for the discovery of liquidity for large blocks without causing significant market impact. With every stage of the RFQ process now being meticulously logged, the strategy of [liquidity discovery](https://prime.greeks.live/area/liquidity-discovery/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) must evolve to account for a new type of information risk. This risk is not of market-facing [information leakage](https://prime.greeks.live/area/information-leakage/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), but of regulatory interpretation and the potential for pattern analysis by authorities examining the complete market picture.

Market makers and liquidity providers, aware that their quotes are being recorded, may alter their quoting behavior. The willingness to show a large size or a tight price on a quote response could be tempered by the knowledge that this information is being permanently stored and is accessible to regulators. This could lead to a subtle but significant change in the liquidity profile available through RFQ channels, potentially making it more cautious or formulaic. The strategic imperative for the institutional trader is to understand this new dynamic and adapt their approach to counterparty selection and negotiation.

![Transparent geometric forms symbolize high-fidelity execution and price discovery across market microstructure. A teal element signifies dynamic liquidity pools for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-rfq-execution-for-institutional-digital-asset-derivatives-1.jpg)

## Rethinking Information Footprints in a Regulated System

An institution’s information footprint is now significantly larger. The [data trail](https://prime.greeks.live/area/data-trail/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) from RFQ activity can provide regulators with insights into a firm’s trading intentions and strategies. This requires a more deliberate approach to how, when, and to whom RFQs are sent.

A strategy of “spraying” the street with RFQs to discover the best price might now be viewed as less desirable, as it creates a large and potentially noisy data trail in CAT. A more targeted approach, focusing on a smaller number of trusted counterparties, may become the preferred strategy to minimize this new form of information signature.

> CAT compels institutions to manage their RFQ information footprint with the same discipline as their market-facing orders, balancing the need for liquidity with the reality of regulatory transparency.

![A high-fidelity institutional Prime RFQ engine, with a robust central mechanism and two transparent, sharp blades, embodies precise RFQ protocol execution for digital asset derivatives. It symbolizes optimal price discovery, managing latent liquidity and minimizing slippage for multi-leg spread strategies](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-precision-execution-1.jpg)

## Comparative Analysis of RFQ Environments

The table below contrasts the strategic environment for RFQs before and after the implementation of the [CAT reporting](https://prime.greeks.live/area/cat-reporting/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) framework. It highlights the key areas of change that demand strategic adjustment from [institutional trading](https://prime.greeks.live/area/institutional-trading/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) desks.

| Strategic Dimension | Pre-CAT Environment | Post-CAT Environment |
| --- | --- | --- |
| Discretion | High. Interactions were private, known only to the counterparties involved. | Reduced. All interactions are logged and visible to regulators. |
| Information Risk | Primarily focused on counterparty information leakage to the broader market. | Expanded to include regulatory interpretation risk and the security of the central CAT database itself. |
| Counterparty Behavior | Quoting was based purely on the bilateral relationship and perceived market risk. | Quoting may be influenced by the knowledge of permanent record-keeping and regulatory scrutiny. |
| Regulatory Footprint | Minimal. Only the resulting trade, if it occurred on a reportable venue, was logged. | Extensive. The entire negotiation lifecycle creates a detailed, analyzable data trail. |

![Two semi-transparent, curved elements, one blueish, one greenish, are centrally connected, symbolizing dynamic institutional RFQ protocols. This configuration suggests aggregated liquidity pools and multi-leg spread constructions](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-price-discovery-engine.jpg)

## How Does CAT Influence Counterparty Selection?

The selection of counterparties for an RFQ takes on new dimensions. Beyond simply seeking the best price, traders must now consider a counterparty’s sophistication in CAT reporting. A counterparty with robust reporting infrastructure and a clean record is preferable, as reporting errors on their part could potentially link back and create regulatory inquiries for all firms involved in the RFQ. Furthermore, the nature of the relationship evolves.

Trust must now encompass not just discretion and pricing, but also shared adherence to complex technical reporting standards. This elevates the importance of due diligence in the counterparty selection process, favoring established relationships with technologically proficient partners.

![Abstractly depicting an institutional digital asset derivatives trading system. Intersecting beams symbolize cross-asset strategies and high-fidelity execution pathways, integrating a central, translucent disc representing deep liquidity aggregation](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-ecosystem-unifying-rfq-protocols-for-high-fidelity-execution-and-deep-liquidity-aggregation-across-multi-leg-spreads.jpg)

![Beige module, dark data strip, teal reel, clear processing component. This illustrates an RFQ protocol's high-fidelity execution, facilitating principal-to-principal atomic settlement in market microstructure, essential for a Crypto Derivatives OS](https://options.greeks.live/wp-content/uploads/2025/07/institutional-crypto-derivatives-rfq-protocol-execution-engine.jpg)

## Execution

The execution of an RFQ strategy in a post-CAT world is a matter of precise operational engineering. Every action taken by a trader or an automated system during a price solicitation must be captured and reported according to exacting technical specifications. The CAT [NMS Plan](https://prime.greeks.live/area/nms-plan/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) details a series of specific event types that firms must use to report the lifecycle of an electronic RFQ.

This requires that a firm’s order management system (OMS) and execution management system (EMS) are configured to identify, record, and transmit these events accurately. The core challenge is translating the commercial act of negotiation into a structured, machine-readable format that satisfies regulatory requirements.

At the heart of the execution process is the RFQID, a unique identifier that must be created upon initiating an RFQ and appended to every subsequent message related to that inquiry. This ID is the thread that allows regulators to stitch together the entire negotiation from the initial request to the final responses. The operational burden falls on the firm’s technology stack to generate, manage, and accurately apply these identifiers throughout the workflow, ensuring a complete and coherent [audit trail](https://prime.greeks.live/area/audit-trail/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) for each negotiation.

> Successful execution in the CAT era requires flawless integration of regulatory reporting logic directly into the trading workflow, transforming every step of an RFQ negotiation into a reportable event.

![A dark, transparent capsule, representing a principal's secure channel, is intersected by a sharp teal prism and an opaque beige plane. This illustrates institutional digital asset derivatives interacting with dynamic market microstructure and aggregated liquidity](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-market-microstructure.jpg)

## The Lifecycle of a Reportable RFQ Event

The table below outlines the key reportable events in an electronic RFQ lifecycle as per the CAT specifications. Understanding this flow is critical for ensuring compliance and designing robust internal systems.

| Event Code | Description | Operational Implication |
| --- | --- | --- |
| MENQ (New Quote Request) | The initial message sent by a solicitor to one or more responders. | The system must generate a unique RFQID and log the details of the request, including the instrument and counterparties. |
| MEQR (Quote Response) | A responder’s reply to the quote request, containing their price and size. | The responder’s system must capture the RFQID from the request and include it in their response submission to CAT. |
| MEQM (Quote Modification) | A message from the solicitor modifying the terms of the original RFQ. | The system must link this modification back to the original RFQID and report the changes accurately. |
| MLQR (Quote) | Used by liquidity providers to submit quotes. | This event must be correctly formatted with price, size, and other required fields. |

![A central, intricate blue mechanism, evocative of an Execution Management System EMS or Prime RFQ, embodies algorithmic trading. Transparent rings signify dynamic liquidity pools and price discovery for institutional digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/precision-engineered-institutional-digital-asset-derivatives-framework-driving-high-fidelity-rfq-execution-and-optimized-market-microstructure-for-capital-efficiency.jpg)

## Clock Synchronization and Data Integrity

A foundational element of CAT reporting is the requirement for precisely synchronized clocks across all market participants. For RFQs, this means that the timestamps for the request, the responses, and any modifications must be accurate to within a specified tolerance. This allows regulators to reconstruct the sequence of events with a high degree of fidelity. From an execution perspective, this requires a robust internal infrastructure for time synchronization, typically using Network Time Protocol (NTP) traceable to the National Institute of Standards and Technology (NIST).

Any drift or inaccuracy in timestamps can lead to reporting errors and potential regulatory sanction. The integrity of the entire RFQ data set hinges on this precise and reliable timekeeping.

![Abstract composition featuring transparent liquidity pools and a structured Prime RFQ platform. Crossing elements symbolize algorithmic trading and multi-leg spread execution, visualizing high-fidelity execution within market microstructure for institutional digital asset derivatives via RFQ protocols](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-trading-system-precision-engineering-facilitating-high-fidelity-execution-via-rfq-protocols-and-optimal-liquidity-aggregation.jpg)

## Building a Resilient Reporting Architecture

To meet these execution challenges, institutional firms must invest in a resilient reporting architecture. This involves several key components:

- **Data Capture** ▴ Systems must be designed to capture all relevant data points from the OMS/EMS, including not just the terms of the RFQ but also the metadata, such as timestamps and user IDs.

- **Data Transformation** ▴ The captured data must be transformed into the specific format required by the [CAT NMS](https://prime.greeks.live/area/cat-nms/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) Plan, including the correct event codes and field values.

- **Error Correction** ▴ A robust process must be in place to handle reporting errors, such as rejected submissions or inconsistencies identified by the CAT system. FINRA rules require timely repair of such issues.

- **Recordkeeping** ▴ Firms are obligated to maintain records of all data submitted to CAT, as well as the raw data used to generate those submissions, for a specified period.

This architecture is the operational backbone of CAT compliance. Its effectiveness directly impacts the firm’s ability to continue using RFQs as a primary liquidity discovery tool without incurring undue regulatory risk.

![A glowing green torus embodies a secure Atomic Settlement Liquidity Pool within a Principal's Operational Framework. Its luminescence highlights Price Discovery and High-Fidelity Execution for Institutional Grade Digital Asset Derivatives](https://options.greeks.live/wp-content/uploads/2025/07/illuminated-rfq-protocols-for-institutional-digital-asset-derivatives-trading.jpg)

## References

- SIFMA. “Consolidated Audit Trail (CAT).” SIFMA, 2023.

- Optiver. “Blazing a new Consolidated Audit Trail.” Optiver, 30 Nov. 2023.

- FINRA. “Consolidated Audit Trail (CAT).” FINRA.org, 2024.

- Consolidated Audit Trail, LLC. “CAT Reporting Technical Specifications for Industry Members.” CAT NMS Plan, 12 Apr. 2024.

- Securities Industry and Financial Markets Association. “A Safer CAT for Investors.” SIFMA, 25 Apr. 2024.

![A luminous teal bar traverses a dark, textured metallic surface with scattered water droplets. This represents the precise, high-fidelity execution of an institutional block trade via a Prime RFQ, illustrating real-time price discovery](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-real-time-institutional-digital-asset-rfq-execution-stream-visualizing-prime-os-liquidity-flow.jpg)

## Reflection

The integration of RFQ protocols into the [Consolidated Audit](https://prime.greeks.live/question/how-does-an-rfq-audit-trail-support-best-execution-requirements-under-mifid-ii/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) Trail marks a permanent change in the architecture of institutional trading. The knowledge gained here is a component in a larger system of operational intelligence. The ultimate advantage lies not in simply complying with the new rules, but in re-architecting your internal framework to leverage this new reality. Consider how this new layer of data transparency interacts with your firm’s existing systems for risk management, compliance, and execution analysis.

The challenge is to build a holistic operational system where regulatory data feeds become a source of strength, reinforcing discipline and precision in every aspect of your trading strategy. The potential exists to create an execution framework that is not only compliant by design but also more robust, deliberate, and strategically sound as a result.

![Robust polygonal structures depict foundational institutional liquidity pools and market microstructure. Transparent, intersecting planes symbolize high-fidelity execution pathways for multi-leg spread strategies and atomic settlement, facilitating private quotation via RFQ protocols within a controlled dark pool environment, ensuring optimal price discovery](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-microstructure-prime-os.jpg)

## Glossary

<a href="https://prime.greeks.live/area/consolidated-audit-trail/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Transparent glass geometric forms, a pyramid and sphere, interact on a reflective plane. This visualizes institutional digital asset derivatives market microstructure, emphasizing RFQ protocols for liquidity aggregation, high-fidelity execution, and price discovery within a Prime RFQ supporting multi-leg spread strategies](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-optimized-for-execution.jpg)

## Consolidated Audit Trail

Meaning ▴ The Consolidated Audit Trail (CAT) is a comprehensive, centralized database designed to capture and track every order, quote, and trade across US equity and options markets. </a><a href="https://prime.greeks.live/area/rfq/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A central processing core with intersecting, transparent structures revealing intricate internal components and blue data flows. This symbolizes an institutional digital asset derivatives platform's Prime RFQ, orchestrating high-fidelity execution, managing aggregated RFQ inquiries, and ensuring atomic settlement within dynamic market microstructure, optimizing capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-trading-system-facilitating-high-fidelity-rfq-protocol-optimization-for-best-execution-and-atomic-settlement.jpg)

## Rfq

Meaning ▴ Request for Quote (RFQ) is a structured communication protocol enabling a market participant to solicit executable price quotations for a specific instrument and quantity from a selected group of liquidity providers. </a><a href="https://prime.greeks.live/question/what-are-the-core-differences-between-a-request-for-quote-and-a-request-for-market/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A segmented teal and blue institutional digital asset derivatives platform reveals its core market microstructure. Internal layers expose sophisticated algorithmic execution engines, high-fidelity liquidity aggregation, and real-time risk management protocols, integral to a Prime RFQ supporting Bitcoin options and Ethereum futures trading](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-prime-os-core-microstructure.jpg)

## Quote Request

An RFQ sources discreet, competitive quotes from select dealers, while an RFM engages the continuous, anonymous, public order book. </a><a href="https://prime.greeks.live/area/cat-nms-plan/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sophisticated digital asset derivatives trading mechanism features a central processing hub with luminous blue accents, symbolizing an intelligence layer driving high fidelity execution. Transparent circular elements represent dynamic liquidity pools and a complex volatility surface, revealing market microstructure and atomic settlement via an advanced RFQ protocol](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-high-fidelity-execution-framework-optimizing-market-microstructure-price-discovery-intelligence-layer.jpg)

## Cat Nms Plan

Meaning ▴ The Consolidated Audit Trail National Market System Plan, or CAT NMS Plan, establishes a centralized repository for granular order and trade data across U.S. </a><a href="https://prime.greeks.live/area/rfqid/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![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)

## Rfqid

Meaning ▴ The RFQID, or Request For Quote Identifier, is a system-generated, globally unique alphanumeric string assigned to each specific instance of a price inquiry within an electronic trading system. </a><a href="https://prime.greeks.live/area/information-leakage/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Central axis with angular, teal forms, radiating transparent lines. Abstractly represents an institutional grade Prime RFQ execution engine for digital asset derivatives, processing aggregated inquiries via RFQ protocols, ensuring high-fidelity execution and price discovery](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-high-fidelity-execution-market-microstructure-price-discovery-volatility-surface-analytics.jpg)

## Information Leakage

Meaning ▴ Information leakage denotes the unintended or unauthorized disclosure of sensitive trading data, often concerning an institution's pending orders, strategic positions, or execution intentions, to external market participants. </a><a href="https://prime.greeks.live/area/liquidity-discovery/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A precisely engineered multi-component structure, split to reveal its granular core, symbolizes the complex market microstructure of institutional digital asset derivatives. This visual metaphor represents the unbundling of multi-leg spreads, facilitating transparent price discovery and high-fidelity execution via RFQ protocols within a Principal's operational framework](https://options.greeks.live/wp-content/uploads/2025/07/institutional-grade-digital-asset-derivatives-rfq-protocols-revealing-market-microstructure-for-high-fidelity-execution-and-atomic-settlement-within-principals-operational-framework.jpg)

## Liquidity Discovery

Meaning ▴ Liquidity Discovery defines the operational process of identifying and assessing available order flow and executable price levels across diverse market venues or internal liquidity pools, often executed in real-time. </a><a href="https://prime.greeks.live/area/data-trail/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A transparent glass sphere rests precisely on a metallic rod, connecting a grey structural element and a dark teal engineered module with a clear lens. This symbolizes atomic settlement of digital asset derivatives via private quotation within a Prime RFQ, showcasing high-fidelity execution and capital efficiency for RFQ protocols and liquidity aggregation](https://options.greeks.live/wp-content/uploads/2025/07/architecting-high-fidelity-execution-for-institutional-digital-asset-derivatives-rfq-protocols-and-systemic-liquidity-aggregation.jpg)

## Data Trail

Meaning ▴ A Data Trail constitutes the comprehensive, time-sequenced record of all interactions and events generated by an entity or system within a digital asset trading environment, encompassing every order submission, modification, cancellation, execution, and associated system-level acknowledgement. </a><a href="https://prime.greeks.live/area/institutional-trading/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Stacked, modular components represent a sophisticated Prime RFQ for institutional digital asset derivatives. Each layer signifies distinct liquidity pools or execution venues, with transparent covers revealing intricate market microstructure and algorithmic trading logic, facilitating high-fidelity execution and price discovery within a private quotation environment](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-execution-framework.jpg)

## Institutional Trading

Meaning ▴ Institutional Trading refers to the execution of large-volume financial transactions by entities such as asset managers, hedge funds, pension funds, and sovereign wealth funds, distinct from retail investor activity. </a><a href="https://prime.greeks.live/area/cat-reporting/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Translucent teal glass pyramid and flat pane, geometrically aligned on a dark base, symbolize market microstructure and price discovery within RFQ protocols for institutional digital asset derivatives. This visualizes multi-leg spread construction, high-fidelity execution via a Principal's operational framework, ensuring atomic settlement for latent liquidity](https://options.greeks.live/wp-content/uploads/2025/07/transparent-geometric-structures-visualizing-multi-leg-spread-rfq-protocols-for-high-fidelity-institutional-digital-asset-derivatives-execution.jpg)

## Cat Reporting

Meaning ▴ CAT Reporting, or Consolidated Audit Trail Reporting, mandates the comprehensive capture and reporting of all order and trade events across US equity and and options markets. </a><a href="https://prime.greeks.live/area/nms-plan/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Sharp, transparent, teal structures and a golden line intersect a dark void. This symbolizes market microstructure for institutional digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-precision-execution-leveraging-granular-market-microstructure-intelligence.jpg)

## Nms Plan

Meaning ▴ The NMS Plan, within the context of institutional digital asset derivatives, defines a conceptual framework for structuring market operations to ensure transparency, fairness, and efficient price discovery across distributed ledger technology-based trading venues. </a><a href="https://prime.greeks.live/area/audit-trail/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Diagonal composition of sleek metallic infrastructure with a bright green data stream alongside a multi-toned teal geometric block. This visualizes High-Fidelity Execution for Digital Asset Derivatives, facilitating RFQ Price Discovery within deep Liquidity Pools, critical for institutional Block Trades and Multi-Leg Spreads on a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-digital-asset-derivatives-rfq-execution-optimization-leveraging-proprietary-institutional-prime-os-for-optimal-price-discovery-and-latency-reduction.jpg)

## Audit Trail

Meaning ▴ An Audit Trail is a chronological, immutable record of system activities, operations, or transactions within a digital environment, detailing event sequence, user identification, timestamps, and specific actions. </a><a href="https://prime.greeks.live/area/cat-nms/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, multi-segmented sphere embodies a Principal's operational framework for institutional digital asset derivatives. Its transparent 'intelligence layer' signifies high-fidelity execution and price discovery via RFQ protocols](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-rfq-protocol-digital-asset-derivatives-execution-engine.jpg)

## Cat Nms

Meaning ▴ The Consolidated Audit Trail (CAT) National Market System (NMS) Plan establishes a centralized, comprehensive database designed to track the lifecycle of orders and trades in U.S. </a><a href="https://prime.greeks.live/question/how-does-an-rfq-audit-trail-support-best-execution-requirements-under-mifid-ii/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Interlocking transparent and opaque geometric planes on a dark surface. This abstract form visually articulates the intricate Market Microstructure of Institutional Digital Asset Derivatives, embodying High-Fidelity Execution through advanced RFQ protocols](https://options.greeks.live/wp-content/uploads/2025/07/geometric-abstraction-of-institutional-digital-asset-derivatives-market-microstructure-driving-high-fidelity-execution-via-principal-rfq-protocols-and-optimal-liquidity-aggregation.jpg)

## Consolidated Audit

An RFQ audit trail provides the immutable, data-driven evidence required to prove a systematic process for achieving best execution under MiFID II. </a>

**Tags:** [CAT NMS](https://options.greeks.live/area/cat-nms/), [FINRA Rule 6800](https://options.greeks.live/area/finra-rule-6800/), [Market Microstructure](https://options.greeks.live/area/market-microstructure/), [Data Trail](https://options.greeks.live/area/data-trail/), [Liquidity Discovery](https://options.greeks.live/area/liquidity-discovery/), [CAT Reporting](https://options.greeks.live/area/cat-reporting/)	

## Discover More

- 
### [How Will the Expiration of This Exemption in 2026 Impact Institutional Trading Workflows?](https://options.greeks.live/question/how-will-the-expiration-of-this-exemption-in-2026-impact-institutional-trading-workflows/)
![Precisely balanced blue spheres on a beam and angular fulcrum, atop a white dome. This signifies RFQ protocol optimization for institutional digital asset derivatives, ensuring high-fidelity execution, price discovery, capital efficiency, and systemic equilibrium in multi-leg spreads.](https://options.greeks.live/wp-content/uploads/2025/07/systemic-equilibrium-in-digital-asset-derivatives-rfq-protocols.jpg)

The 2026 expiration of SEC exemptions mandates a systemic overhaul of trading workflows to report short sales and RFQ data.

- 
### [How Does CAT Reporting for Rfqs Differ from Standard Order Reporting?](https://options.greeks.live/question/how-does-cat-reporting-for-rfqs-differ-from-standard-order-reporting/)
![A precision sphere, an Execution Management System EMS, probes a Digital Asset Liquidity Pool. This signifies High-Fidelity Execution via Smart Order Routing for institutional-grade digital asset derivatives. It highlights Price Discovery and Pre-Trade Analytics within a Principal's Prime RFQ framework.](https://options.greeks.live/wp-content/uploads/2025/07/principal-rfq-engine-orchestrating-global-digital-asset-derivatives-liquidity-pool-price-discovery-and-high-fidelity-execution.jpg)

CAT reporting for RFQs targets the single, executable event of a private negotiation, while standard order reporting chronicles the entire public lifecycle.

- 
### [For Which Types of Securities Is an Actionable Ioi a More Effective Tool than an Rfq?](https://options.greeks.live/question/for-which-types-of-securities-is-an-actionable-ioi-a-more-effective-tool-than-an-rfq/)
![A glowing central lens, embodying a high-fidelity price discovery engine, is framed by concentric rings signifying multi-layered liquidity pools and robust risk management. This institutional-grade system represents a Prime RFQ core for digital asset derivatives, optimizing RFQ execution and capital efficiency.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-prime-os-core-for-high-fidelity-rfq-execution-and-latent-liquidity-aggregation.jpg)

Actionable IOIs excel for securities with latent or fragmented liquidity, while RFQs are superior for competitive pricing of complex, structured instruments.

- 
### [The Trader’s Guide to Sourcing Deep Liquidity on Demand](https://options.greeks.live/guide/the-traders-guide-to-sourcing-deep-liquidity-on-demand/)
![A refined object featuring a translucent teal element, symbolizing a dynamic RFQ for Institutional Grade Digital Asset Derivatives. Its precision embodies High-Fidelity Execution and seamless Price Discovery within complex Market Microstructure. The reflective surface suggests deep Liquidity Pool access for Block Trade and Private Quotation protocols.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-precision-for-optimal-execution-and-deep-liquidity-aggregation.jpg)

Command the market's deepest liquidity on your terms and transform your execution from a cost center into a source of alpha.

- 
### [How Does Smart Trading Utilize Time?](https://options.greeks.live/question/how-does-smart-trading-utilize-time/)
![The abstract composition features a central, multi-layered blue structure representing a sophisticated institutional digital asset derivatives platform, flanked by two distinct liquidity pools. Intersecting blades symbolize high-fidelity execution pathways and algorithmic trading strategies, facilitating private quotation and block trade settlement within a market microstructure optimized for price discovery and capital efficiency.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-high-fidelity-execution-1.jpg)

Smart Trading weaponizes time, orchestrating order execution across a temporal landscape to control information and secure liquidity.

- 
### [Can the Use of RFQ Systems Mitigate the Impact of High Quote Rejection Rates?](https://options.greeks.live/question/can-the-use-of-rfq-systems-mitigate-the-impact-of-high-quote-rejection-rates/)
![Visualizing a complex Institutional RFQ ecosystem, angular forms represent multi-leg spread execution pathways and dark liquidity integration. A sharp, precise point symbolizes high-fidelity execution for digital asset derivatives, highlighting atomic settlement within a Prime RFQ framework. This abstract composition conveys advanced market microstructure for price discovery.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-high-fidelity-execution-1.jpg)

RFQ systems mitigate high quote rejection rates by replacing open market signals with controlled, private auctions.

- 
### [What Is the Core Differentiator of This Smart Trading Tool?](https://options.greeks.live/question/what-is-the-core-differentiator-of-this-smart-trading-tool/)
![A sleek, multi-layered device, possibly a control knob, with cream, navy, and metallic accents, against a dark background. This represents a Prime RFQ interface for Institutional Digital Asset Derivatives. Its refined design signifies High-Fidelity Execution, Private Quotation capabilities, and Algorithmic Trading precision within Market Microstructure for Best Execution via RFQ protocols, minimizing Slippage.](https://options.greeks.live/wp-content/uploads/2025/07/precision-control-interface-for-institutional-digital-asset-derivatives-rfq-protocols-and-prime-os.jpg)

The core differentiator is its function as an integrated execution OS, providing systemic control over liquidity and risk.

- 
### [The Institutional Method for Executing Large Block Trades](https://options.greeks.live/guide/the-institutional-method-for-executing-large-block-trades/)
![Intersecting translucent planes and a central financial instrument depict RFQ protocol negotiation for block trade execution. Glowing rings emphasize price discovery and liquidity aggregation within market microstructure. This visualizes high-fidelity execution for digital asset derivatives on a Prime RFQ intelligence layer.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-orchestration-for-high-fidelity-execution-across-prime-os.jpg)

Command your execution. Access private liquidity networks to transact at scale with precision and discretion.

- 
### [What Are the Key Differences in CAT Reporting for a Private RFQ versus a Public Order?](https://options.greeks.live/question/what-are-the-key-differences-in-cat-reporting-for-a-private-rfq-versus-a-public-order/)
![A high-fidelity institutional digital asset derivatives execution platform. A central conical hub signifies precise price discovery and aggregated inquiry for RFQ protocols. Linear pathways represent advanced algorithmic trading routes, ensuring capital efficiency and best execution within market microstructure, crucial for options trading.](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-rfq-protocol-high-fidelity-digital-asset-derivatives-execution-1.jpg)

CAT reporting diverges to map two realities: the linear, public life of an order versus the conversational, private lifecycle of an RFQ.

---

## 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 the CAT Reporting Framework for RFQs Impact Liquidity Discovery for Institutional Traders?",
            "item": "https://options.greeks.live/question/how-does-the-cat-reporting-framework-for-rfqs-impact-liquidity-discovery-for-institutional-traders/"
        }
    ]
}
```

```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-the-cat-reporting-framework-for-rfqs-impact-liquidity-discovery-for-institutional-traders/"
    },
    "headline": "How Does the CAT Reporting Framework for RFQs Impact Liquidity Discovery for Institutional Traders? \u25b4 Question",
    "description": "The CAT reporting framework transforms discreet RFQ protocols into a transparent, auditable data stream for regulators, impacting liquidity discovery. \u25b4 Question",
    "url": "https://options.greeks.live/question/how-does-the-cat-reporting-framework-for-rfqs-impact-liquidity-discovery-for-institutional-traders/",
    "datePublished": "2025-07-30T05:53:45+00:00",
    "dateModified": "2025-07-31T07:26:43+00:00",
    "articleSection": [
        "Question"
    ],
    "author": {
        "@id": "https://greeks.live/#organization"
    },
    "publisher": {
        "@id": "https://greeks.live/#organization"
    },
    "image": {
        "@type": "ImageObject",
        "url": "https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-optimized-for-execution.jpg",
        "caption": "A transparent glass pyramid and sphere precisely interact on a reflective surface. This visualizes the intricate market microstructure of institutional digital asset derivatives trading. It highlights RFQ protocols facilitating liquidity aggregation and high-fidelity execution, enabling precise price discovery for multi-leg spread strategies. The clarity signifies the intelligence layer of a Prime RFQ, driving capital efficiency and best execution within the Crypto Derivatives OS."
    },
    "keywords": [
        "Audit Trail",
        "Block Trading",
        "CAT NMS",
        "CAT NMS Plan",
        "CAT Reporting",
        "Clock Synchronization",
        "Consolidated Audit Trail",
        "Data Trail",
        "FINRA Rule 6800",
        "Information Leakage",
        "Institutional Trading",
        "Liquidity Discovery",
        "Market Microstructure",
        "NMS Plan",
        "Regulatory Oversight",
        "Request for Quote",
        "RFQ",
        "RFQID"
    ]
}
```

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

```json
{
    "@context": "https://schema.org",
    "@type": "FAQPage",
    "mainEntity": [
        {
            "@type": "Question",
            "name": "What Is The True Scope Of RFQ Reporting Under CAT?",
            "acceptedAnswer": {
                "@type": "Answer",
                "text": "The reporting mandate extends far beyond the final execution. It encompasses the granular events that constitute the price discovery process itself. The CAT NMS Plan specifies the reporting of events for both the solicitor and the responder in an RFQ negotiation. This includes the initial quote request, the responses from potential counterparties, and any modifications to the quote. Each of these events must be time-stamped with precision and linked together via a unique identifier, the RFQID. This creates a complete, time-sequenced record of the negotiation, from initiation to completion, available for regulatory review. The operational challenge lies in ensuring that internal systems can capture and report these interaction data points with the accuracy and timeliness the rules demand."
            }
        },
        {
            "@type": "Question",
            "name": "How Does CAT Influence Counterparty Selection?",
            "acceptedAnswer": {
                "@type": "Answer",
                "text": "The selection of counterparties for an RFQ takes on new dimensions. Beyond simply seeking the best price, traders must now consider a counterparty's sophistication in CAT reporting. A counterparty with robust reporting infrastructure and a clean record is preferable, as reporting errors on their part could potentially link back and create regulatory inquiries for all firms involved in the RFQ. Furthermore, the nature of the relationship evolves. Trust must now encompass not just discretion and pricing, but also shared adherence to complex technical reporting standards. This elevates the importance of due diligence in the counterparty selection process, favoring established relationships with technologically proficient partners."
            }
        }
    ]
}
```


---

**Original URL:** https://options.greeks.live/question/how-does-the-cat-reporting-framework-for-rfqs-impact-liquidity-discovery-for-institutional-traders/
