# How Does the LIS Waiver Interact with the Double Volume Caps on Dark Pool Trading? ▴ Question

**Published:** 2025-08-13
**Categories:** Question

---

![Reflective planes and intersecting elements depict institutional digital asset derivatives market microstructure. A central Principal-driven RFQ protocol ensures high-fidelity execution and atomic settlement across diverse liquidity pools, optimizing multi-leg spread strategies on a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-precision.jpg)

![A transparent sphere, bisected by dark rods, symbolizes an RFQ protocol's core. This represents multi-leg spread execution within a high-fidelity market microstructure for institutional grade digital asset derivatives, ensuring optimal price discovery and capital efficiency via Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-digital-asset-derivatives-rfq-protocols-high-fidelity-execution.jpg)

## Concept

The architecture of modern European equity markets is a complex interplay of regulated pathways, each designed with a specific purpose. Within this structure, the interaction between the Large-in-Scale (LIS) waiver and the [Double Volume Caps](https://prime.greeks.live/area/double-volume-caps/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (DVC) is a fundamental mechanism governing liquidity access and [execution strategy](https://prime.greeks.live/area/execution-strategy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). To an institutional trader, this is not a peripheral regulatory detail; it is a core operational dynamic that directly shapes the viability of non-displayed trading and the very design of sophisticated execution algorithms. Understanding this relationship is equivalent to understanding a critical switching mechanism within the market’s core processing system.

At its foundation, the Markets in Financial Instruments Directive II (MiFID II) established a framework intended to enhance transparency across trading venues. A central component of this framework is the limitation placed on dark pool trading for standard-sized orders. Dark pools, or non-displayed trading venues, permit participants to place orders without [pre-trade transparency](https://prime.greeks.live/question/how-do-large-in-scale-waivers-impact-pre-trade-and-post-trade-transparency-for-sovereign-bonds/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), a feature highly valued for minimizing information leakage and potential market impact. The regulatory concern, however, was that an excessive volume of trading migrating to dark venues could impair the public [price formation](https://prime.greeks.live/area/price-formation/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) process that occurs on “lit” exchanges.

> The Double Volume Cap mechanism acts as a regulatory governor on dark trading for most orders, while the LIS waiver provides a designated bypass for institutional block liquidity.

To balance these objectives, the DVC mechanism was engineered. It functions as a quantitative constraint, a system-wide monitor that tracks the volume of trading occurring under specific [pre-trade transparency waivers](https://prime.greeks.live/question/how-do-large-in-scale-waivers-impact-pre-trade-and-post-trade-transparency-for-sovereign-bonds/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) ▴ namely the Reference Price Waiver (RPW) and the Negotiated Trade Waiver (NTW). The system operates on two thresholds for each equity instrument:

- **A 4% Venue Cap** ▴ Trading in a specific stock on a single [dark pool](https://prime.greeks.live/area/dark-pool/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) cannot exceed 4% of the total trading volume for that stock across all EU venues over a rolling 12-month period.

- **An 8% Market-Wide Cap** ▴ Total trading in that same stock across all [dark pools](https://prime.greeks.live/area/dark-pools/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) combined cannot exceed 8% of the total volume over the same period.

Should either of these caps be breached, a six-month suspension is imposed, prohibiting trading in that instrument under the RPW and NTW. For the venue that breached the 4% cap, the suspension is specific to that venue. If the 8% cap is breached, the suspension applies to all dark venues across the European Union. This mechanism effectively forces smaller order flow back onto [lit markets](https://prime.greeks.live/area/lit-markets/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), ensuring it contributes to public price discovery.

Herein lies the critical interaction. The [LIS waiver](https://prime.greeks.live/area/lis-waiver/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) was created for an entirely different purpose ▴ to facilitate the execution of very large orders that, if exposed on a lit order book, would almost certainly cause significant adverse price movement. It acknowledges that the market impact risk for institutional-size orders is substantial and provides a specific exemption from pre-trade transparency for them. The defining feature of this interaction is that transactions executed under the LIS waiver are explicitly excluded from the DVC calculations.

They do not contribute to the 4% or 8% thresholds. This creates a dual-track system for [dark liquidity](https://prime.greeks.live/area/dark-liquidity/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) ▴ a capped, monitored channel for smaller orders, and an uncapped, parallel channel for institutional block orders. The LIS waiver functions as a high-capacity, protected lane for institutional flow, completely insulated from the volume-based restrictions that govern the rest of dark trading.

![A stylized depiction of institutional-grade digital asset derivatives RFQ execution. A central glowing liquidity pool for price discovery is precisely pierced by an algorithmic trading path, symbolizing high-fidelity execution and slippage minimization within market microstructure via a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-high-fidelity-execution-1.jpg)

![A dark, glossy sphere atop a multi-layered base symbolizes a core intelligence layer for institutional RFQ protocols. This structure depicts high-fidelity execution of digital asset derivatives, including Bitcoin options, within a prime brokerage framework, enabling optimal price discovery and systemic risk mitigation](https://options.greeks.live/wp-content/uploads/2025/07/institutional-rfq-protocol-architecture-for-digital-asset-derivatives.jpg)

## Strategy

The bifurcation of dark liquidity pathways created by the LIS and DVC mechanisms necessitates a sophisticated, multi-layered execution strategy. For institutional market participants, navigating this landscape requires more than passive compliance; it demands the active design of order routing logic and execution algorithms that treat the LIS-DVC interaction as a primary input variable. The strategic objective is to maintain access to non-displayed liquidity while minimizing execution costs and managing the structural constraints imposed by the regulatory framework.

![A complex, multi-faceted crystalline object rests on a dark, reflective base against a black background. This abstract visual represents the intricate market microstructure of institutional digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-prime-os-execution-architecture.jpg)

## Smart Order Routing and Venue Prioritization

A broker’s Smart Order Router (SOR) is the primary tool for implementing a strategy that accounts for the DVC. The SOR’s logic must be dynamic, continuously updated with data from the European Securities and Markets Authority ([ESMA](https://prime.greeks.live/area/esma/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite)) regarding which instruments are currently “capped.”

When an instrument is not capped, the SOR can route non-LIS orders to a variety of dark pools, seeking price improvement and size. When an instrument becomes capped, the SOR’s programming must immediately adapt:

- **Flow Diversion** ▴ All sub-LIS order flow for the capped instrument must be rerouted away from dark pools operating under the RPW and NTW. The primary alternatives become lit markets, periodic auctions, and Systematic Internalisers (SIs).

- **LIS Flow Prioritization** ▴ Simultaneously, the SOR must recognize that LIS-qualifying orders remain unaffected. For these orders, dark pools remain a primary source of liquidity. The strategy shifts from broad dark pool access to a targeted search for block-sized counterparties in those same venues.

- **Venue-Specific Logic** ▴ The strategy becomes even more granular when only a single venue is capped under the 4% rule. The SOR must be capable of excluding just that one venue for sub-LIS orders of a specific stock, while still considering it for LIS orders and for all orders in other, uncapped stocks.

![Abstract geometric forms, symbolizing bilateral quotation and multi-leg spread components, precisely interact with robust institutional-grade infrastructure. This represents a Crypto Derivatives OS facilitating high-fidelity execution via an RFQ workflow, optimizing capital efficiency and price discovery](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-engine-infrastructure.jpg)

## Buy-Side Execution Strategy and Algorithmic Choice

For an asset manager, the LIS-DVC dynamic directly influences the choice of execution algorithm for a large parent order. The decision is no longer simply about VWAP versus Implementation Shortfall; it involves a structural consideration of how to interact with the market’s segmentation.

Consider a portfolio manager needing to execute a 500,000-share order in a stock where the [LIS threshold](https://prime.greeks.live/area/lis-threshold/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) is 250,000 shares (€500,000 notional, for instance). The strategic choice is clear:

- **Strategy A The Slicing Approach** ▴ Use a standard participation algorithm (e.g. VWAP) that breaks the parent order into thousands of small child orders. These orders are sub-LIS and, if routed to dark pools, will contribute to the DVC. If the stock is capped, this strategy’s access to dark liquidity is severely curtailed, potentially increasing market impact as more flow is forced onto lit books.

- **Strategy B The Block Seeking Approach** ▴ Employ an algorithm specifically designed to find large [block liquidity](https://prime.greeks.live/guide/the-hidden-liquidity-advantage-sourcing-deep-liquidity-with-rfq/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). This might involve pinging dark pools with Indications of Interest (IOIs) or using specialized block discovery networks. The objective is to execute the order in one or two large prints that qualify for the LIS waiver. This strategy is entirely immune to the DVC status of the instrument and is often the most effective way to minimize information leakage.

The following table illustrates the strategic decision-making process for a trader based on the DVC status of a security.

| Scenario | Security DVC Status | Optimal Sub-LIS Strategy | Optimal LIS Strategy | Primary Rationale |
| --- | --- | --- | --- | --- |
| 1 | Uncapped | Utilize SOR with broad access to all dark and lit venues to capture price improvement. | Seek block liquidity in dark venues to minimize impact; LIS waiver ensures no DVC contribution. | Maximize access to all available liquidity pools before any restrictions are in place. |
| 2 | Capped at Venue ‘X’ (4%) | SOR logic excludes Venue ‘X’ for dark routing; diverts to other dark pools and lit markets. | Continue to seek LIS blocks in all venues, including Venue ‘X’, as LIS flow is exempt. | Isolate and bypass the single point of failure (the capped venue) for sub-LIS flow while maintaining full access for LIS flow. |
| 3 | Capped Market-Wide (8%) | SOR logic prohibits all dark routing under RPW/NTW. Flow is directed to lit markets, SIs, and periodic auctions. | Dark pools remain the primary source for block liquidity. The strategy becomes more focused on LIS-only venues and IOIs. | The general channel for dark liquidity is closed, making the protected LIS channel critically important for institutional size. |

![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)

![A sleek, metallic platform features a sharp blade resting across its central dome. This visually represents the precision of institutional-grade digital asset derivatives RFQ execution](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-precision-1.jpg)

## Execution

The execution of orders within the LIS and DVC framework is a matter of precise operational mechanics, embedded in the technological protocols of trading systems and the quantitative thresholds set by regulators. For a trading desk, successful execution depends on a deep, procedural understanding of how an order qualifies for the LIS waiver and how to architect a response when the DVC mechanism is triggered.

![Depicting a robust Principal's operational framework dark surface integrated with a RFQ protocol module blue cylinder. Droplets signify high-fidelity execution and granular market microstructure](https://options.greeks.live/wp-content/uploads/2025/08/system-specialists-prime-os-intelligence-layer-rfq-protocols-digital-asset.jpg)

## The Operational Mechanics of LIS Qualification

An order’s qualification for the LIS waiver is not discretionary; it is determined by quantitative thresholds defined in [MiFID II](https://prime.greeks.live/area/mifid-ii/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite)’s [Regulatory Technical Standards](https://prime.greeks.live/area/regulatory-technical-standards/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (RTS 1). These thresholds are not static. They are calibrated based on the average daily turnover (ADT) of the specific financial instrument, creating a tiered system for liquidity.

ESMA periodically publishes the ADT for all relevant equities, which in turn determines the LIS threshold for each. A trading system must have access to this data to correctly flag orders. An order must meet or exceed the specified notional value at the moment of entry into the trading system to be eligible for the waiver. Any subsequent amendment to the order requires a re-assessment against the threshold.

The following table provides a simplified, illustrative example of LIS thresholds. The actual values are instrument-specific and published by ESMA.

| Instrument Liquidity Tier | Average Daily Turnover (ADT) | Illustrative LIS Threshold (Notional Value) | Operational Implication |
| --- | --- | --- | --- |
| Very High | €100,000,000 | €650,000 | Only very large block orders in the most-traded stocks will qualify for the waiver. |
| High | €25,000,000 – €100,000,000 | €500,000 | Standard institutional block size is likely to qualify, facilitating off-book trading. |
| Medium | €5,000,000 – €25,000,000 | €250,000 | A broader range of institutional orders can be executed under the LIS waiver. |
| Low | < €5,000,000 | €100,000 | Smaller “block” trades in less liquid names can still benefit from pre-trade transparency protection. |

From a technology perspective, the Financial Information eXchange (FIX) protocol is the standard for communicating order characteristics. To utilize the LIS waiver, an order message would typically be flagged with a specific tag (e.g. ExecInst or a custom tag) indicating the intent to use the waiver. The receiving venue’s matching engine is then responsible for validating that the order’s size meets the regulatory threshold before accepting it under LIS conditions.

![The image depicts an advanced intelligent agent, representing a principal's algorithmic trading system, navigating a structured RFQ protocol channel. This signifies high-fidelity execution within complex market microstructure, optimizing price discovery for institutional digital asset derivatives while minimizing latency and slippage across order book dynamics](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-optimizing-market-microstructure-for-principal-trading-intelligence-layer.jpg)

## Procedural Response to a DVC Suspension

When ESMA announces that a security’s DVC has been breached, a well-prepared trading desk executes a pre-defined operational playbook. The response must be swift and systematic to prevent routing errors and maintain execution quality.

> A DVC suspension is a predictable system event that requires an automated, pre-configured response from the execution infrastructure.

The procedure involves a coordinated effort across technology, trading, and compliance:

- **Data Ingestion** ▴ The firm’s market data systems must automatically ingest the updated DVC list from ESMA. This is typically a machine-readable file containing the ISINs of all capped instruments.

- **SOR Re-Configuration** ▴ The SOR’s rules engine is the central point of control. Upon ingestion of the new DVC list, the SOR’s logic for the affected ISINs is dynamically updated. Routing instructions that previously directed sub-LIS flow to dark pools are disabled or rerouted.

- **Algorithmic Profile Adjustment** ▴ The default parameters for execution algorithms may be adjusted. For capped stocks, algorithms that rely heavily on passive dark fills (like some versions of VWAP) might be de-prioritized in favor of more aggressive, lit-market-focused strategies like Implementation Shortfall.

- **Alerting and Monitoring** ▴ The trading desk receives automated alerts confirming the SOR and algorithmic adjustments. Real-time monitoring dashboards should visually distinguish between capped and uncapped securities, providing traders with immediate context for their orders.

- **Compliance Verification** ▴ The compliance team’s systems verify that no trades in the capped instrument are executed in a dark pool under the suspended waivers. Post-trade analysis confirms that execution venues and waiver usage align with the DVC status.

This systematic response ensures that the firm’s execution strategy remains aligned with the prevailing regulatory environment. The interaction of the LIS waiver and the DVC is a clear example of how market structure rules directly translate into required technological capabilities and operational procedures for any institutional participant.

![A sleek, institutional-grade device featuring a reflective blue dome, representing a Crypto Derivatives OS Intelligence Layer for RFQ and Price Discovery. Its metallic arm, symbolizing Pre-Trade Analytics and Latency monitoring, ensures High-Fidelity Execution for Multi-Leg Spreads](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-execution-intelligence-layer.jpg)

## References

- European Securities and Markets Authority. “Consultation on MiFID II/ MiFIR review report on the transparency regime for equities and bonds.” ESMA, 2020.

- Deutsche Bank. “MiFID II ▴ Double Volume Caps.” Global Market Structure ▴ Europe, 9 March 2018.

- European Securities and Markets Authority. “Opinion on the assessment of pre-trade transparency waivers.” ESMA70-155-6641, 16 October 2024.

- Financial Conduct Authority. “OPINION – On the assessment of pre-trade transparency waivers for equity and non-equity instruments.” 17 July 2020.

- Norton Rose Fulbright. “10 things you should know ▴ The MiFID II / MiFIR RTS.” 2016.

- Harris, Larry. Trading and Exchanges ▴ Market Microstructure for Practitioners. Oxford University Press, 2003.

- O’Hara, Maureen. Market Microstructure Theory. Blackwell Publishers, 1995.

- Lehalle, Charles-Albert, and Sophie Laruelle. Market Microstructure in Practice. World Scientific Publishing, 2013.

![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)

## Reflection

The mechanical relationship between the Large-in-Scale waiver and the [Double Volume](https://prime.greeks.live/question/what-are-the-primary-differences-between-the-double-volume-cap-and-the-new-single-volume-cap/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) Caps offers a clear window into the philosophy of modern market regulation. It is a system designed not with a single goal, but with a set of balanced, sometimes competing, objectives ▴ fostering transparency, protecting institutional orders from undue impact, and ensuring the integrity of public price discovery. For the institutional participant, this framework elevates the concept of execution beyond a simple search for the best price. It transforms it into a problem of systems navigation.

Viewing this interaction through an architectural lens reveals that the regulations have effectively created different tiers of access to liquidity. The quality of an institution’s execution framework ▴ its data processing, its routing logic, its algorithmic design ▴ determines its ability to operate seamlessly across these tiers. A reactive approach, one that simply responds to a DVC cap after the fact, concedes a strategic advantage. A proactive, systems-based approach, which anticipates these shifts and has pre-configured responses, maintains operational superiority.

Ultimately, the knowledge of this specific mechanism is a component within a larger intelligence layer. The crucial inquiry for any trading principal is how this component integrates with the rest of their operational system. How does the firm’s technology translate this regulatory reality into a tangible execution edge? The answer lies not in a single piece of software, but in the coherence of the entire trading architecture, from data ingestion to post-trade analysis, designed to master the complex, rule-driven landscape of today’s markets.

![A sleek, multi-component device with a dark blue base and beige bands culminates in a sophisticated top mechanism. This precision instrument symbolizes a Crypto Derivatives OS facilitating RFQ protocol for block trade execution, ensuring high-fidelity execution and atomic settlement for institutional-grade digital asset derivatives across diverse liquidity pools](https://options.greeks.live/wp-content/uploads/2025/08/advanced-mechanism-for-principal-trading-firm-rfq-protocols-and-high-fidelity-digital-asset-derivatives-execution.jpg)

## Glossary

<a href="https://prime.greeks.live/area/execution-strategy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A polished, dark blue domed component, symbolizing a private quotation interface, rests on a gleaming silver ring. This represents a robust Prime RFQ framework, enabling high-fidelity execution for institutional digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/08/optimized-execution-for-institutional-digital-asset-derivatives-rfq.jpg)

## Execution Strategy

Meaning ▴ A defined algorithmic or systematic approach to fulfilling an order in a financial market, aiming to optimize specific objectives like minimizing market impact, achieving a target price, or reducing transaction costs. </a><a href="https://prime.greeks.live/area/double-volume-caps/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A dark, reflective surface showcases a metallic bar, symbolizing market microstructure and RFQ protocol precision for block trade execution. A clear sphere, representing atomic settlement or implied volatility, rests upon it, set against a teal liquidity pool](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-high-fidelity-execution-4.jpg)

## Double Volume Caps

Meaning ▴ Double Volume Caps refer to a regulatory mechanism under MiFID II designed to limit the amount of equity trading that can occur under specific pre-trade transparency waivers. </a><a href="https://prime.greeks.live/question/how-do-large-in-scale-waivers-impact-pre-trade-and-post-trade-transparency-for-sovereign-bonds/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A dark blue sphere, representing a deep liquidity pool for digital asset derivatives, opens via a translucent teal RFQ protocol. This unveils a principal's operational framework, detailing algorithmic trading for high-fidelity execution and atomic settlement, optimizing market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/rfq-block-trade-liquidity-microstructure-execution-prime-os-derivatives-capital.jpg)

## Pre-Trade Transparency

Large-in-scale waivers are a systemic control, reducing transparency to protect liquidity and enable the discrete execution of large sovereign bond trades. </a><a href="https://prime.greeks.live/area/price-formation/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Clear geometric prisms and flat planes interlock, symbolizing complex market microstructure and multi-leg spread strategies in institutional digital asset derivatives. A solid teal circle represents a discrete liquidity pool for private quotation via RFQ protocols, ensuring high-fidelity execution](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-price-discovery-and-high-fidelity-execution.jpg)

## Price Formation

Meaning ▴ Price formation refers to the dynamic, continuous process by which the equilibrium value of a financial instrument is established through the interaction of supply and demand within a market system. </a><a href="https://prime.greeks.live/question/how-do-large-in-scale-waivers-impact-pre-trade-and-post-trade-transparency-for-sovereign-bonds/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A futuristic, institutional-grade sphere, diagonally split, reveals a glowing teal core of intricate circuitry. This represents a high-fidelity execution engine for digital asset derivatives, facilitating private quotation via RFQ protocols, embodying market microstructure for latent liquidity and precise price discovery](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-engine-prime-os.jpg)

## Pre-Trade Transparency Waivers

Large-in-scale waivers are a systemic control, reducing transparency to protect liquidity and enable the discrete execution of large sovereign bond trades. </a><a href="https://prime.greeks.live/area/dark-pool/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![An abstract, angular, reflective structure intersects a dark sphere. This visualizes institutional digital asset derivatives and high-fidelity execution via RFQ protocols for block trade and private quotation](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-rfq-protocols-for-high-fidelity-digital-asset-execution.jpg)

## Dark Pool

Meaning ▴ A Dark Pool is an alternative trading system (ATS) or private exchange that facilitates the execution of large block orders without displaying pre-trade bid and offer quotations to the wider market. </a><a href="https://prime.greeks.live/area/dark-pools/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A spherical Liquidity Pool is bisected by a metallic diagonal bar, symbolizing an RFQ Protocol and its Market Microstructure. Imperfections on the bar represent Slippage challenges in High-Fidelity Execution](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-optimization-within-principals-market-microstructure-framework.jpg)

## Dark Pools

Meaning ▴ Dark Pools are alternative trading systems (ATS) that facilitate institutional order execution away from public exchanges, characterized by pre-trade anonymity and non-display of liquidity. </a><a href="https://prime.greeks.live/area/lit-markets/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![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)

## Lit Markets

Meaning ▴ Lit Markets are centralized exchanges or trading venues characterized by pre-trade transparency, where bids and offers are publicly displayed in an order book prior to execution. </a><a href="https://prime.greeks.live/area/lis-waiver/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![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](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)

## Lis Waiver

Meaning ▴ The LIS Waiver, or Large In-Size Waiver, constitutes a regulatory provision permitting the non-publication of pre-trade quotes for orders exceeding a specific volume threshold in certain financial markets. </a><a href="https://prime.greeks.live/area/dark-liquidity/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Precision mechanics illustrating institutional RFQ protocol dynamics. Metallic and blue blades symbolize principal's bids and counterparty responses, pivoting on a central matching engine](https://options.greeks.live/wp-content/uploads/2025/07/precision-institutional-digital-asset-derivatives-rfq-execution-engine-microstructure.jpg)

## Dark Liquidity

Meaning ▴ Dark Liquidity denotes trading volume not displayed on public order books, operating without pre-trade transparency. </a><a href="https://prime.greeks.live/area/esma/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A luminous, miniature Earth sphere rests precariously on textured, dark electronic infrastructure with subtle moisture. This visualizes institutional digital asset derivatives trading, highlighting high-fidelity execution within a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/global-digital-asset-derivatives-rfq-protocol-execution-engine-underpinning-institutional-market-microstructure-with-precision.jpg)

## Esma

Meaning ▴ ESMA, the European Securities and Markets Authority, functions as an independent European Union agency responsible for safeguarding the stability of the EU's financial system by ensuring the integrity, transparency, efficiency, and orderly functioning of securities markets, alongside enhancing investor protection. </a><a href="https://prime.greeks.live/area/lis-threshold/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![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)

## Lis Threshold

Meaning ▴ The LIS Threshold represents a dynamically determined order size benchmark, classifying trades as "Large In Scale" to delineate distinct market microstructure rules, primarily concerning pre-trade transparency obligations and enabling different execution methodologies for institutional digital asset derivatives. </a><a href="https://prime.greeks.live/guide/the-hidden-liquidity-advantage-sourcing-deep-liquidity-with-rfq/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A luminous teal sphere, representing a digital asset derivative private quotation, rests on an RFQ protocol channel. A metallic element signifies the algorithmic trading engine and robust portfolio margin](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-microstructure-optimizing-prime-os.jpg)

## Block Liquidity

Command deep liquidity and execute large-scale derivatives trades with price certainty using the professional's RFQ system. </a><a href="https://prime.greeks.live/area/regulatory-technical-standards/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, angled object, featuring a dark blue sphere, cream disc, and multi-part base, embodies a Principal's operational framework. This represents an institutional-grade RFQ protocol for digital asset derivatives, facilitating high-fidelity execution and price discovery within market microstructure, optimizing capital efficiency](https://options.greeks.live/wp-content/uploads/2025/08/prime-os-rfq-for-institutional-digital-asset-derivatives-execution.jpg)

## Regulatory Technical Standards

Meaning ▴ Regulatory Technical Standards, or RTS, are legally binding technical specifications developed by European Supervisory Authorities to elaborate on the details of legislative acts within the European Union's financial services framework. </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">
![Abstract geometric forms depict institutional digital asset derivatives trading. A dark, speckled surface represents fragmented liquidity and complex market microstructure, interacting with a clean, teal triangular Prime RFQ structure](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-high-fidelity-execution-system-for-prime-os-liquidity-pool.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/what-are-the-primary-differences-between-the-double-volume-cap-and-the-new-single-volume-cap/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Layered abstract forms depict a Principal's Prime RFQ for institutional digital asset derivatives. A textured band signifies robust RFQ protocol and market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-derivatives-rfq-high-fidelity-execution-prime-os-market-microstructure.jpg)

## Double Volume

The Single Volume Cap streamlines MiFID II's dual-threshold system into a unified 7% EU-wide limit, simplifying dark pool access. </a>

**Tags:** [Regulatory Technical Standards](https://options.greeks.live/area/regulatory-technical-standards/), [Price Formation](https://options.greeks.live/area/price-formation/), [Execution Strategy](https://options.greeks.live/area/execution-strategy/), [Dark Liquidity](https://options.greeks.live/area/dark-liquidity/), [MiFID II](https://options.greeks.live/area/mifid-ii/), [Algorithmic Trading](https://options.greeks.live/area/algorithmic-trading/)	

## Discover More

- 
### [How Do Execution Priority Rules in Dark Pools Affect Overall Market Liquidity?](https://options.greeks.live/question/how-do-execution-priority-rules-in-dark-pools-affect-overall-market-liquidity/)
![A sleek, symmetrical digital asset derivatives component. It represents an RFQ engine for high-fidelity execution of multi-leg spreads. This balanced design optimizes capital efficiency and risk profiles within market microstructure, enabling best execution and price discovery for institutional block trades.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-for-optimized-market-microstructure.jpg)

Execution priority rules in dark pools are the logic gates that dictate order precedence, directly shaping liquidity and risk profiles.

- 
### [What Are the Primary Operational Adjustments a Trading Desk Must Make to Capitalize on LIS Waivers?](https://options.greeks.live/question/what-are-the-primary-operational-adjustments-a-trading-desk-must-make-to-capitalize-on-lis-waivers/)
![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)

A trading desk capitalizes on LIS waivers by re-architecting its workflow for systemic information control and sophisticated liquidity sourcing.

- 
### [How Does a Hybrid Rfq Compare to Lit Order Books and Dark Pools for Regulatory Compliance?](https://options.greeks.live/question/how-does-a-hybrid-rfq-compare-to-lit-order-books-and-dark-pools-for-regulatory-compliance/)
![A sharp, dark, precision-engineered element, indicative of a targeted RFQ protocol for institutional digital asset derivatives, traverses a secure liquidity aggregation conduit. This interaction occurs within a robust market microstructure platform, symbolizing high-fidelity execution and atomic settlement under a Principal's operational framework for best execution.](https://options.greeks.live/wp-content/uploads/2025/07/principal-grade-digital-asset-derivatives-rfq-protocol-execution-engine.jpg)

A hybrid RFQ offers a superior regulatory compliance framework by creating an auditable, competitive auction, balancing confidentiality with best execution evidence.

- 
### [How Might Regulatory Changes to Dark Pools Alter the Equilibrium between Lit and Dark Venues?](https://options.greeks.live/question/how-might-regulatory-changes-to-dark-pools-alter-the-equilibrium-between-lit-and-dark-venues/)
![A central, multifaceted RFQ engine processes aggregated inquiries via precise execution pathways and robust capital conduits. This institutional-grade system optimizes liquidity aggregation, enabling high-fidelity execution and atomic settlement for digital asset derivatives.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-rfq-protocol-engine-high-fidelity-digital-asset-execution.jpg)

Regulatory changes re-architect liquidity pathways, forcing a recalibration of execution logic to maintain optimal performance.

- 
### [What Are the Long Term Consequences of the Double Volume Cap for Price Discovery and Market Quality?](https://options.greeks.live/question/what-are-the-long-term-consequences-of-the-double-volume-cap-for-price-discovery-and-market-quality/)
![A multi-faceted crystalline form with sharp, radiating elements centers on a dark sphere, symbolizing complex market microstructure. This represents sophisticated RFQ protocols, aggregated inquiry, and high-fidelity execution across diverse liquidity pools, optimizing capital efficiency for institutional digital asset derivatives within a Prime RFQ.](https://options.greeks.live/wp-content/uploads/2025/07/rfq-protocols-for-institutional-digital-asset-derivatives-price-discovery.jpg)

The Double Volume Cap fragmented liquidity, increasing execution complexity and elevating the strategic importance of alternative trading venues.

- 
### [In What Ways Do Large-In-Scale Waivers Affect Liquidity Discovery and Market Impact for Block Trades?](https://options.greeks.live/question/in-what-ways-do-large-in-scale-waivers-affect-liquidity-discovery-and-market-impact-for-block-trades/)
![The abstract composition visualizes interconnected liquidity pools and price discovery mechanisms within institutional digital asset derivatives trading. Transparent layers and sharp elements symbolize high-fidelity execution of multi-leg spreads via RFQ protocols, emphasizing capital efficiency and optimized market microstructure.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-market-microstructure-1.jpg)

Large-in-scale waivers restructure block trading by shifting liquidity discovery to non-transparent venues to minimize price impact.

- 
### [How Do Regulatory Changes like MiFID II Affect Dark Pool Trading Strategies?](https://options.greeks.live/question/how-do-regulatory-changes-like-mifid-ii-affect-dark-pool-trading-strategies/)
![Brushed metallic and colored modular components represent an institutional-grade Prime RFQ facilitating RFQ protocols for digital asset derivatives. The precise engineering signifies high-fidelity execution, atomic settlement, and capital efficiency within a sophisticated market microstructure for multi-leg spread trading.](https://options.greeks.live/wp-content/uploads/2025/08/institutional-grade-digital-asset-derivatives-rfq-protocol-high-fidelity-execution-system.jpg)

MiFID II recalibrated dark pool trading by imposing volume caps, forcing a strategic shift to order aggregation for LIS block execution.

- 
### [How Does the LIS Waiver Provide a Strategic Advantage under MiFID II?](https://options.greeks.live/question/how-does-the-lis-waiver-provide-a-strategic-advantage-under-mifid-ii/)
![Two sleek, pointed objects intersect centrally, forming an 'X' against a dual-tone black and teal background. This embodies the high-fidelity execution of institutional digital asset derivatives via RFQ protocols, facilitating optimal price discovery and efficient cross-asset trading within a robust Prime RFQ, minimizing slippage and adverse selection.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-prime-os-microstructure.jpg)

The LIS waiver provides a strategic edge by enabling discreet, large-scale trade execution, thus minimizing adverse market impact.

- 
### [In What Ways Did the Double Volume Caps Increase the Complexity of Proving Best Execution?](https://options.greeks.live/question/in-what-ways-did-the-double-volume-caps-increase-the-complexity-of-proving-best-execution/)
![A transparent geometric object, an analogue for multi-leg spreads, rests on a dual-toned reflective surface. Its sharp facets symbolize high-fidelity execution, price discovery, and market microstructure. This embodies RFQ protocols, liquidity aggregation, and capital efficiency in a Prime RFQ.](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-rfq-digital-asset-derivatives-high-fidelity-execution.jpg)

The Double Volume Caps fragmented liquidity pathways, demanding a dynamic, data-intensive, and evidence-based execution framework.

---

## 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 LIS Waiver Interact with the Double Volume Caps on Dark Pool Trading?",
            "item": "https://options.greeks.live/question/how-does-the-lis-waiver-interact-with-the-double-volume-caps-on-dark-pool-trading/"
        }
    ]
}
```

```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-lis-waiver-interact-with-the-double-volume-caps-on-dark-pool-trading/"
    },
    "headline": "How Does the LIS Waiver Interact with the Double Volume Caps on Dark Pool Trading? \u25b4 Question",
    "description": "The LIS waiver exempts institutional block trades from the DVC calculation, creating a protected, uncapped channel for large order execution. \u25b4 Question",
    "url": "https://options.greeks.live/question/how-does-the-lis-waiver-interact-with-the-double-volume-caps-on-dark-pool-trading/",
    "datePublished": "2025-08-13T22:23:16+00:00",
    "dateModified": "2025-08-13T22:23:18+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-price-discovery-and-high-fidelity-execution.jpg",
        "caption": "The abstract composition of clear geometric prisms and intersecting planes visually interprets the intricate market microstructure of institutional digital asset derivatives. It illustrates the precise algorithmic trading strategies and multi-leg spread constructions. The solid teal circle signifies a dedicated dark pool or principal's liquidity pool, enabling efficient block trade execution via advanced RFQ protocols, minimizing slippage and optimizing capital efficiency for high-fidelity execution and pre-trade analytics."
    },
    "keywords": [
        "Algorithmic Trading",
        "Block Trading",
        "Dark Liquidity",
        "Dark Pool",
        "Dark Pools",
        "Double Volume Caps",
        "ESMA",
        "Execution Strategy",
        "Large in Scale Waiver",
        "LIS Threshold",
        "LIS Waiver",
        "Lit Markets",
        "Market Microstructure",
        "MiFID II",
        "Price Formation",
        "Regulatory Technical Standards",
        "Smart Order Routing",
        "Transaction Cost Analysis",
        "Volume Caps"
    ]
}
```

```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-the-lis-waiver-interact-with-the-double-volume-caps-on-dark-pool-trading/
