# How Does the SSTI Waiver Removal Impact EU Market Competitiveness? ▴ Question

**Published:** 2025-08-03
**Categories:** Question

---

![A sleek, multi-component system, predominantly dark blue, features a cylindrical sensor with a central lens. This precision-engineered module embodies an intelligence layer for real-time market microstructure observation, facilitating high-fidelity execution via RFQ protocol](https://options.greeks.live/wp-content/uploads/2025/07/institutional-rfq-protocol-intelligence-layer-for-digital-asset-derivatives-microstructure.jpg)

![Sleek, modular infrastructure for institutional digital asset derivatives trading. Its intersecting elements symbolize integrated RFQ protocols, facilitating high-fidelity execution and precise price discovery across complex multi-leg spreads](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-system-optimizing-high-fidelity-block-trade-liquidity-and-multi-leg-spread-precision.jpg)

## Concept

The removal of the Size Specific to an Instrument (SSTI) waiver is an architectural alteration to the European Union’s market structure, fundamentally recalibrating the relationship between [pre-trade transparency](https://prime.greeks.live/area/pre-trade-transparency/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) and the mechanics of risk transfer for institutional participants. You are likely experiencing the operational consequences of this shift, which redefines how liquidity is sourced for large-scale derivatives contracts. The core of the matter resides in the tension between a regulatory objective for a universally observable market and the foundational need for market makers to manage their own risk when facilitating substantial client orders. The [SSTI waiver](https://prime.greeks.live/area/ssti-waiver/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) functioned as a critical release valve within the Markets in Financial Instruments Regulation (MiFIR) framework, a protocol designed to protect the liquidity provider.

Specifically, the waiver permitted market operators, particularly those running [Request for Quote](https://prime.greeks.live/area/request-for-quote/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (RFQ) or voice trading systems, to withhold pre-trade publication of quotes for orders that exceeded a certain size threshold. This was a structural acknowledgment that broadcasting the intent to transact in significant volume exposes the quoting institution to undue risk. If a [Systematic Internaliser](https://prime.greeks.live/area/systematic-internaliser/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (SI) ▴ an investment firm that uses its own capital to execute client orders outside of a traditional trading venue ▴ is forced to publicly display a large quote, other market participants can anticipate the SI’s subsequent hedging activities.

This [information leakage](https://prime.greeks.live/area/information-leakage/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) allows others to trade ahead of the SI, moving market prices against it and increasing the cost and difficulty of managing the risk from the initial client trade. The SSTI waiver was the system’s designated mechanism for mitigating this precise scenario, thereby enabling SIs and other market makers to provide more competitive pricing and deeper liquidity for the large-scale hedging instruments essential to the real economy.

The decision by the European Securities and Markets Authority (ESMA) to proceed with the removal of this waiver stems from a broader push within the [MiFIR](https://prime.greeks.live/area/mifir/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) review to simplify the transparency regime and reduce information asymmetries across the market. The stated goal is to create a more level playing field by enhancing the real-time availability of post-trade data and streamlining the complex system of waivers. From a regulatory architect’s perspective, the objective was to consolidate a fragmented reporting environment and move closer to a single, coherent view of market activity.

The removal of the SSTI waiver is a key component of this simplification process, leaving the Large-in-Scale (LIS) waiver as one of the primary mechanisms for deferring publication. This act, however, reconfigures the operational parameters for any institution whose business model depends on pricing and managing large, idiosyncratic risk positions.

![A sleek, futuristic institutional-grade instrument, representing high-fidelity execution of digital asset derivatives. Its sharp point signifies price discovery via RFQ protocols](https://options.greeks.live/wp-content/uploads/2025/07/precision-rfq-execution-engine-for-institutional-digital-asset-derivatives.jpg)

![Abstract architectural representation of a Prime RFQ for institutional digital asset derivatives, illustrating RFQ aggregation and high-fidelity execution. Intersecting beams signify multi-leg spread pathways and liquidity pools, while spheres represent atomic settlement points and implied volatility](https://options.greeks.live/wp-content/uploads/2025/07/architecting-institutional-digital-asset-derivatives-trading-systems-for-optimized-rfq-execution-and-advanced-price-discovery.jpg)

## Strategy

The strategic implications of eliminating the SSTI waiver extend through the entire transaction lifecycle, forcing a fundamental reassessment of risk, pricing, and competitive positioning for market participants within the EU. The primary impact is a systemic transfer of risk from the broader market onto the balance sheets of liquidity providers, a shift that necessitates immediate and decisive strategic adaptation.

> The removal of the SSTI waiver structurally disadvantages EU-based liquidity providers by mandating a level of pre-trade transparency not required in other major financial centers.

![Precision system for institutional digital asset derivatives. Translucent elements denote multi-leg spread structures and RFQ protocols](https://options.greeks.live/wp-content/uploads/2025/07/precision-execution-infrastructure-for-institutional-digital-asset-derivatives-request-for-quote-protocol-optimization.jpg)

## Recalibrating the Systematic Internaliser Model

[Systematic Internalisers](https://prime.greeks.live/area/systematic-internalisers/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) are at the epicenter of this regulatory change. Their function is to provide bespoke liquidity, using their own capital to facilitate client trades that are often too large or specialized for central limit order books. The SSTI waiver was integral to this model, as it allowed them to provide quotes for substantial transactions without telegraphing their positions to the market. Without this protection, SIs face a critical strategic dilemma.

The “undue risk” described by industry bodies is the operational reality of information leakage. An SI quoting on a large interest rate swap, for example, must hedge its resulting interest rate exposure. Forced pre-trade transparency of that quote acts as a clear signal of the SI’s impending hedging trades.

High-frequency trading firms and other opportunistic players can process this signal and execute trades that profit from the SI’s need to hedge, a process that ultimately raises costs for the SI. The strategic response for the SI involves several potential pathways:

- **Pricing Model Adjustment** ▴ The most direct response is to incorporate the cost of this information leakage into the price quoted to the client. Bid-ask spreads on large derivative contracts will widen to compensate for the increased hedging risk. This protects the SI’s capital but makes its services more expensive for end-users like corporate treasurers and asset managers.

- **Reduction in Quoted Size** ▴ SIs may strategically refuse to quote for the full size of a large client order. Instead, they might offer to execute only a fraction of the requested amount, forcing the client to break up the order and seek liquidity from multiple sources. This minimizes the SI’s risk on any single quote but degrades execution quality for the client and increases market fragmentation.

- **Enhanced Technological Defenses** ▴ Firms will need to invest in more sophisticated execution algorithms for their own hedging activities. These systems must be designed to minimize market impact by breaking down large hedges into smaller, less conspicuous orders executed across multiple venues and time horizons.

![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)

## How Does This Affect EU End-Users?

For the corporations and investment funds that rely on derivatives to manage financial risks, the strategic consequences are equally significant. The primary objective of hedging is to reduce uncertainty at a predictable cost. The removal of the SSTI waiver directly threatens this objective. These clients will likely face a marketplace where liquidity for large transactions is thinner and more expensive.

A manufacturing company seeking to hedge its foreign currency exposure may find that the cost of doing so erodes the economic benefit of the hedge itself. This could lead to a strategic decision to either accept a higher degree of unhedged risk or to seek out more favorable execution environments.

![Abstract depiction of an advanced institutional trading system, featuring a prominent sensor for real-time price discovery and an intelligence layer. Visible circuitry signifies algorithmic trading capabilities, low-latency execution, and robust FIX protocol integration for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-prime-os-high-fidelity-rfq-protocols.jpg)

## The Global Competitiveness Dimension

This regulatory modification does not occur in a vacuum. It places EU-based financial institutions at a distinct strategic disadvantage relative to their international competitors, particularly those in the United States and the United Kingdom. These jurisdictions have adopted different approaches to derivatives transparency that are broadly viewed as less prescriptive.

The UK, for instance, is considering the removal of pre-trade transparency requirements for certain derivatives, moving in the opposite direction of the EU. This divergence creates a powerful incentive for market activity to migrate away from the EU.

The table below illustrates the resulting strategic landscape for a derivatives dealer operating across multiple jurisdictions.

### Table 1 ▴ Comparative Pre-Trade Transparency Regimes for Derivatives

| Jurisdiction | Pre-Trade Transparency Requirement for Large RFQ Trades | Strategic Implication for EU Dealers |
| --- | --- | --- |
| European Union | High. Mandatory pre-trade publication for SIs on quotes above a certain size, with the SSTI waiver removed. | Increased hedging risk and cost, leading to wider spreads and reduced ability to compete on price for large trades. |
| United Kingdom | Lower. The regime is under review with a potential move to reduce or remove pre-trade transparency obligations for derivatives. | UK-based dealers can price more aggressively and handle larger sizes, creating a significant competitive advantage. |
| United States | Lower. The US framework does not impose a comparable pre-trade transparency burden for similar bilateral derivatives business. | US dealers operate with lower information leakage risk, allowing for more efficient risk management and pricing. |

This unlevel playing field incentivizes a strategic shift in how and where large trades are executed. A global asset manager based in Paris may find it more efficient to route its large derivatives orders through its London or New York trading desks, even if the underlying assets are European. This not only impacts the competitiveness of EU dealers but also undermines the overarching goal of building a deeper, more robust [Capital Markets Union](https://prime.greeks.live/area/capital-markets-union/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) within the EU.

![A central, symmetrical, multi-faceted mechanism with four radiating arms, crafted from polished metallic and translucent blue-green components, represents an institutional-grade RFQ protocol engine. Its intricate design signifies multi-leg spread algorithmic execution for liquidity aggregation, ensuring atomic settlement within crypto derivatives OS market microstructure for prime brokerage clients](https://options.greeks.live/wp-content/uploads/2025/07/precision-rfq-engine-for-crypto-derivatives-liquidity-aggregation.jpg)

![A sleek Prime RFQ interface features a luminous teal display, signifying real-time RFQ Protocol data and dynamic Price Discovery within Market Microstructure. A detached sphere represents an optimized Block Trade, illustrating High-Fidelity Execution and Liquidity Aggregation for Institutional Digital Asset Derivatives](https://options.greeks.live/wp-content/uploads/2025/08/advanced-rfq-protocol-engine-for-institutional-digital-asset-derivatives.jpg)

## Execution

For institutional participants, navigating the post-SSTI waiver environment requires a granular focus on execution mechanics and quantitative [risk management](https://prime.greeks.live/area/risk-management/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). The architectural change in market rules necessitates a corresponding redesign of internal trading systems, pricing models, and client engagement protocols. Success is now defined by the ability to manage information leakage and secure liquidity in a more transparent, and therefore more hazardous, pre-trade environment.

![A symmetrical, intricate digital asset derivatives execution engine. Its metallic and translucent elements visualize a robust RFQ protocol facilitating multi-leg spread execution](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-best-execution.jpg)

## The Operational Playbook for Systematic Internalisers

Systematic Internalisers must re-engineer their execution workflow from the ground up. This is a multi-stage process that touches every aspect of their operations, from initial client contact to post-trade analysis.

- **Client Tiering and Protocol Selection** ▴ SIs must develop a more sophisticated framework for classifying client orders. This involves assessing not just the notional value of a proposed trade but also its complexity and the liquidity of the underlying instrument. For large, sensitive orders, the standard RFQ protocol may be supplemented with a high-touch approach, where voice broking and carefully staged execution become paramount.

- **Dynamic Spread Calculation** ▴ Static pricing models are obsolete. Execution desks now require dynamic spread calculators that incorporate a real-time “Information Leakage [Risk Premium](https://prime.greeks.live/area/risk-premium/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite).” This premium would be a function of the order size, the instrument’s volatility, and prevailing market depth. The model must be capable of adjusting the quoted spread second-by-second based on live market data feeds.

- **[Algorithmic Hedging](https://prime.greeks.live/area/algorithmic-hedging/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) Deployment** ▴ The SI’s own hedging activity must become far more sophisticated. Instead of executing a single block hedge, the firm’s trading systems must automatically deploy a suite of algorithmic strategies. This could include:

<li>**Iceberg Orders** ▴ These orders reveal only a small portion of the total hedge size at any given time, masking the full extent of the SI’s position.

- **TWAP/VWAP Strategies** ▴ Time-Weighted or Volume-Weighted Average Price algorithms break the hedge into smaller pieces and execute them evenly over a set period or according to trading volume, reducing market impact.

- **Liquidity-Seeking Algorithms** ▴ These smart order routers constantly scan multiple trading venues, including dark pools, to find pockets of liquidity without signaling the firm’s overall intent.

</li>
- **Jurisdictional Routing Logic** ▴ For global institutions, the Order Management System (OMS) must be programmed with jurisdictional routing logic. When a large RFQ is received from an EU client, the system should be able to assess whether executing the trade via a UK or US entity would result in a superior outcome for the client due to the differences in transparency regimes.

![A precise stack of multi-layered circular components visually representing a sophisticated Principal Digital Asset RFQ framework. Each distinct layer signifies a critical component within market microstructure for high-fidelity execution of institutional digital asset derivatives, embodying liquidity aggregation across dark pools, enabling private quotation and atomic settlement](https://options.greeks.live/wp-content/uploads/2025/07/principal-digital-asset-rfq-protocol-layers-for-high-fidelity-execution.jpg)

## Quantitative Modeling and Data Analysis

The impact of the waiver’s removal can be quantified. The following table provides a modeled analysis of how bid-ask spreads for a standard 10-year Euro Interest Rate Swap might be affected. The model assumes the spread is composed of a base operational cost plus a variable risk premium directly tied to the perceived risk of information leakage on larger trades.

### Table 2 ▴ Modeled Impact on Quoted Spreads for EUR 10Y IRS

| Notional Amount (€M) | Pre-Removal Spread (bps) | Post-Removal Spread (bps) | Implied Information Risk Premium (bps) | Increased Client Cost (€) |
| --- | --- | --- | --- | --- |
| 50 | 0.75 | 0.85 | 0.10 | 500 |
| 100 | 0.80 | 1.10 | 0.30 | 3,000 |
| 250 | 0.90 | 1.70 | 0.80 | 20,000 |
| 500 | 1.00 | 2.50 | 1.50 | 75,000 |

The data illustrates a non-linear increase in the risk premium. As the notional value grows, the potential market impact of the SI’s hedging activity becomes exponentially larger, forcing the SI to price in a much higher compensation for the risk of being front-run. The “Increased Client Cost” column quantifies the direct economic consequence for the end-user, transforming a regulatory change into a tangible business expense.

> A market structure optimized for universal transparency may inadvertently penalize the very real-economy participants it is designed to serve.

![Central nexus with radiating arms symbolizes a Principal's sophisticated Execution Management System EMS. Segmented areas depict diverse liquidity pools and dark pools, enabling precise price discovery for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-prime-os-rfq-liquidity-orchestration.jpg)

## Predictive Scenario Analysis

Consider the case of a German automotive supplier, “AutoTeile GmbH,” which has just secured a major five-year contract with a US car manufacturer. The contract is priced in US dollars, exposing AutoTeile to significant currency risk. The firm’s treasurer, Frau Schmidt, needs to execute a large EUR/USD forward contract with a notional value of $500 million to hedge this exposure. She initiates an RFQ through her company’s trading portal, sending the request to three EU-based Systematic Internalisers.

One of these SIs is “EuroBank AG.” Before the SSTI waiver removal, EuroBank’s derivatives desk would have confidently responded with a tight bid-ask spread on the full $500 million. Their risk management system knew that the quote was private, allowing their traders to discreetly hedge the resulting currency exposure in the interbank market over a short period without causing significant market ripples. The process was efficient and the cost to AutoTeile was minimal.

In the current environment, the execution process at EuroBank is profoundly different. The moment Frau Schmidt’s RFQ arrives, EuroBank’s system recognizes that any quote it provides will be subject to MiFIR’s pre-trade transparency requirements. The head of the FX desk, Herr Richter, now faces a difficult choice. If he quotes on the full $500 million, that quote will be published.

Within milliseconds, algorithmic traders and rival banks will see that a large entity needs to buy a substantial amount of EUR/USD. They will anticipate EuroBank’s hedging activity and start buying EUR/USD themselves, pushing the price up before EuroBank can fully execute its hedge. This phenomenon, known as adverse selection, would inflict a direct and substantial loss on Richter’s trading book.

Richter’s team runs their new pricing model. The model calculates that to compensate for the expected information leakage on a $500 million trade, they would need to quote a spread that is 150% wider than what they would have offered previously. When the quote is sent to Frau Schmidt, she is taken aback by the high cost. Simultaneously, Richter’s operational risk committee has flagged the trade.

They are unwilling to expose the bank to the hedging risk associated with such a large, transparent quote. They instruct Richter to revise the offer. EuroBank’s final response to AutoTeile is an offer to execute only $150 million of the required hedge at the wider spread. They decline to quote on the remaining $350 million.

Frau Schmidt is now in a difficult position. She has secured a hedge for less than a third of her company’s exposure and at a higher cost than budgeted. She now has to repeat the RFQ process for the remaining amount, a process that further signals her intentions to the market, potentially driving her costs even higher. Frustrated, she contacts her company’s relationship manager at a large UK-based bank.

The UK dealer, operating under a different regulatory framework without the same pre-trade transparency mandate, is able to analyze the request without the risk of public disclosure. Within minutes, the UK bank provides a competitive quote for the entire remaining $350 million. The spread is tighter than EuroBank’s, and the execution is swift. Frau Schmidt executes the trade with the UK firm. The result is that a significant portion of the hedging business from a German corporate has migrated from an EU dealer to a UK dealer, a direct consequence of the EU’s regulatory architecture placing its own institutions at a competitive disadvantage.

![A sleek, white, semi-spherical Principal's operational framework opens to precise internal FIX Protocol components. A luminous, reflective blue sphere embodies an institutional-grade digital asset derivative, symbolizing optimal price discovery and a robust liquidity pool](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-high-fidelity-execution-5.jpg)

## References

- International Swaps and Derivatives Association. “ISDA Commentary on EC MIFIR proposal ▴ removal of the SSTI threshold.” ISDA, 2021.

- Eurofi. “Enhancing transparency in EU securities markets.” Eurofi Views Magazine, April 2020.

- European Securities and Markets Authority. “Annual transparency calculations for non-equity instruments.” ESMA, 2023.

- European Securities and Markets Authority. “ESMA70-155-6641 Opinion on the assessment of pre-trade transparency waivers.” ESMA, 2019.

- European Centre for International Political Economy. “Future-proofing the EU’s Investment Attractiveness ▴ A Bold Reform Agenda for Competition Enforcement, Taxation and Digital Policy.” ECIPE, 2024.

![An abstract digital interface features a dark circular screen with two luminous dots, one teal and one grey, symbolizing active and pending private quotation statuses within an RFQ protocol. Below, sharp parallel lines in black, beige, and grey delineate distinct liquidity pools and execution pathways for multi-leg spread strategies, reflecting market microstructure and high-fidelity execution for institutional grade digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-protocol-displaying-multi-leg-execution-status-and-optimal-liquidity-pathways.jpg)

## Reflection

The modification of the MiFIR transparency regime prompts a deeper inquiry into the design philosophy of market regulation. When a system architect designs a protocol, every choice involves a trade-off. In this instance, the system has been calibrated to prioritize theoretical market transparency.

The resulting question for any institutional participant is how this calibration aligns with your own operational architecture. Does a system that mandates the public broadcast of your execution strategy enhance or degrade your ability to manage risk effectively?

The knowledge of this regulatory shift is a single component within your broader system of market intelligence. The ultimate strategic advantage is derived from how you integrate this component. How does your firm’s technological framework, your counterparty selection protocol, and your quantitative modeling now need to adapt to this new reality? The challenge is to construct an operational framework that anticipates and neutralizes the risks created by the market’s own rules, thereby retaining a decisive edge in capital efficiency and execution quality.

![Precision-engineered multi-layered architecture depicts institutional digital asset derivatives platforms, showcasing modularity for optimal liquidity aggregation and atomic settlement. This visualizes sophisticated RFQ protocols, enabling high-fidelity execution and robust pre-trade analytics](https://options.greeks.live/wp-content/uploads/2025/08/modular-digital-asset-derivative-prime-os-for-institutional-rfq-and-block-trade-execution.jpg)

## Glossary

<a href="https://prime.greeks.live/area/pre-trade-transparency/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A blue speckled marble, symbolizing a precise block trade, rests centrally on a translucent bar, representing a robust RFQ protocol. This structured geometric arrangement illustrates complex market microstructure, enabling high-fidelity execution, optimal price discovery, and efficient liquidity aggregation within a principal's operational framework for institutional digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/precision-institutional-rfq-execution-framework-optimizing-digital-asset-derivatives-liquidity-aggregation-across-complex-market-microstructure.jpg)

## Pre-Trade Transparency

Meaning ▴ Pre-Trade Transparency, within the architectural framework of crypto markets, refers to the public availability of current bid and ask prices and the depth of trading interest (order book information) before a trade is executed. </a><a href="https://prime.greeks.live/area/ssti-waiver/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A translucent, faceted sphere, representing a digital asset derivative block trade, traverses a precision-engineered track. This signifies high-fidelity execution via an RFQ protocol, optimizing liquidity aggregation, price discovery, and capital efficiency within institutional market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-block-trade-high-fidelity-execution-protocol-prime-os-path.jpg)

## Ssti Waiver

Meaning ▴ An SSTI Waiver is a regulatory exemption granted to certain over-the-counter (OTC) derivatives trades from mandatory central clearing, specifically applicable to "small scale, small volume, and intra-group" transactions. </a><a href="https://prime.greeks.live/area/systematic-internaliser/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Abstract geometric forms depict multi-leg spread execution via advanced RFQ protocols. Intersecting blades symbolize aggregated liquidity from diverse market makers, enabling optimal price discovery and high-fidelity execution](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-multi-leg-rfq-execution-orchestration.jpg)

## Systematic Internaliser

Meaning ▴ A Systematic Internaliser (SI), in the context of institutional crypto trading and particularly relevant under evolving regulatory frameworks contemplating MiFID II-like structures for digital assets, designates an investment firm that executes client orders against its own proprietary capital on an organized, frequent, and systematic basis outside of a regulated market or multilateral trading facility. </a><a href="https://prime.greeks.live/area/request-for-quote/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sophisticated modular component of a Crypto Derivatives OS, featuring an intelligence layer for real-time market microstructure analysis. Its precision engineering facilitates high-fidelity execution of digital asset derivatives via RFQ protocols, ensuring optimal price discovery and capital efficiency for institutional participants](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-module.jpg)

## Request for Quote

Meaning ▴ A Request for Quote (RFQ), in the context of institutional crypto trading, is a formal process where a prospective buyer or seller of digital assets solicits price quotes from multiple liquidity providers or market makers simultaneously. </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">
![A sleek pen hovers over a luminous circular structure with teal internal components, symbolizing precise RFQ initiation. This represents high-fidelity execution for institutional digital asset derivatives, optimizing market microstructure and achieving atomic settlement within a Prime RFQ liquidity pool](https://options.greeks.live/wp-content/uploads/2025/07/optimizing-digital-asset-derivatives-rfq-through-prime-os-precision.jpg)

## Information Leakage

Meaning ▴ Information leakage, in the realm of crypto investing and institutional options trading, refers to the inadvertent or intentional disclosure of sensitive trading intent or order details to other market participants before or during trade execution. </a><a href="https://prime.greeks.live/area/mifir/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Institutional-grade infrastructure supports a translucent circular interface, displaying real-time market microstructure for digital asset derivatives price discovery. Geometric forms symbolize precise RFQ protocol execution, enabling high-fidelity multi-leg spread trading, optimizing capital efficiency and mitigating systemic risk](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-request-for-quote-protocol-high-fidelity-execution-market-microstructure-intelligence-layer.jpg)

## Mifir

Meaning ▴ MiFIR, the Markets in Financial Instruments Regulation, represents a cornerstone of European Union legislation governing financial markets, principally aimed at bolstering transparency, enhancing market efficiency, and strengthening investor protection across traditional asset classes. </a><a href="https://prime.greeks.live/area/systematic-internalisers/?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)

## Systematic Internalisers

Meaning ▴ Systematic Internalisers, in the context of institutional crypto trading, are regulated entities that, as a principal, frequently and systematically execute client orders against their own proprietary capital, operating outside the purview of a multilateral trading facility or regulated exchange. </a><a href="https://prime.greeks.live/area/capital-markets-union/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sophisticated mechanical system featuring a translucent, crystalline blade-like component, embodying a Prime RFQ for Digital Asset Derivatives. This visualizes high-fidelity execution of RFQ protocols, demonstrating aggregated inquiry and price discovery within market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-system-microstructure-1.jpg)

## Capital Markets Union

Meaning ▴ The Capital Markets Union (CMU) is a European Commission initiative aimed at fostering deeper integration of capital markets across its member states. </a><a href="https://prime.greeks.live/area/risk-management/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sophisticated metallic instrument, a precision gauge, indicates a calibrated reading, essential for RFQ protocol execution. Its intricate scales symbolize price discovery and high-fidelity execution for institutional digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-platform.jpg)

## Risk Management

Meaning ▴ Risk Management, within the cryptocurrency trading domain, encompasses the comprehensive process of identifying, assessing, monitoring, and mitigating the multifaceted financial, operational, and technological exposures inherent in digital asset markets. </a><a href="https://prime.greeks.live/area/risk-premium/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Abstract system interface on a global data sphere, illustrating a sophisticated RFQ protocol for institutional digital asset derivatives. The glowing circuits represent market microstructure and high-fidelity execution within a Prime RFQ intelligence layer, facilitating price discovery and capital efficiency across liquidity pools](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-protocol-execution-prime-os.jpg)

## Risk Premium

Meaning ▴ Risk Premium represents the additional return an investor expects or demands for holding a risky asset compared to a risk-free asset. </a><a href="https://prime.greeks.live/area/algorithmic-hedging/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A Principal's RFQ engine core unit, featuring distinct algorithmic matching probes for high-fidelity execution and liquidity aggregation. This price discovery mechanism leverages private quotation pathways, optimizing crypto derivatives OS operations for atomic settlement within its systemic architecture](https://options.greeks.live/wp-content/uploads/2025/08/principals-rfq-engine-driving-optimal-digital-asset-derivatives.jpg)

## Algorithmic Hedging

Meaning ▴ Algorithmic hedging refers to the automated, rule-based execution of financial instruments to mitigate specific risks inherent in an existing or anticipated portfolio position. </a>

**Tags:** [Risk Management](https://options.greeks.live/area/risk-management/), [Request for Quote](https://options.greeks.live/area/request-for-quote/), [SSTI Waiver](https://options.greeks.live/area/ssti-waiver/), [EU Derivatives Market](https://options.greeks.live/area/eu-derivatives-market/), [Risk Premium](https://options.greeks.live/area/risk-premium/), [Capital Markets Union](https://options.greeks.live/area/capital-markets-union/)	

## Discover More

- 
### [Can the Use of a Systematic Internaliser for Large in Scale Orders Actually Reduce Overall Market Risk?](https://options.greeks.live/question/can-the-use-of-a-systematic-internaliser-for-large-in-scale-orders-actually-reduce-overall-market-risk/)
![A sleek, bimodal digital asset derivatives execution interface, partially open, revealing a dark, secure internal structure. This symbolizes high-fidelity execution and strategic price discovery via institutional RFQ protocols. It optimizes capital efficiency by aggregating latent liquidity, minimizing slippage, ensuring best execution for multi-leg spreads and block trades, and mitigating information leakage.](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-protocols-price-discovery.jpg)

The use of a Systematic Internaliser for large-in-scale orders can reduce overall market risk by containing price impact and information leakage.

- 
### [What Are the Implications of MiFID II on the Evolution of RFQ Protocols?](https://options.greeks.live/question/what-are-the-implications-of-mifid-ii-on-the-evolution-of-rfq-protocols/)
![A scratched blue sphere, representing market microstructure and liquidity pool for digital asset derivatives, encases a smooth teal sphere, symbolizing a private quotation via RFQ protocol. An institutional-grade structure suggests a Prime RFQ facilitating high-fidelity execution and managing counterparty risk.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-rfq-protocols-optimizing-digital-asset-derivative-execution-microstructure.jpg)

MiFID II transformed RFQ from a bilateral conversation into a structured, data-driven protocol for proving best execution.

- 
### [How Do Regulatory Frameworks like Mifid Ii Impact the Strategic Choice between Exchanges and Sis for Different Asset Classes?](https://options.greeks.live/question/how-do-regulatory-frameworks-like-mifid-ii-impact-the-strategic-choice-between-exchanges-and-sis-for-different-asset-classes/)
![A central translucent disk, representing a Liquidity Pool or RFQ Hub, is intersected by a precision Execution Engine bar. Its core, an Intelligence Layer, signifies dynamic Price Discovery and Algorithmic Trading logic for Digital Asset Derivatives. Surrounding elements denote Market Microstructure and High-Fidelity Execution pathways for Block Trades, ensuring Best Execution within a Prime RFQ framework.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-engine-visualizing-microstructure.jpg)

MiFID II compels a data-driven choice between exchange transparency and SI discretion, optimizing execution by asset class.

- 
### [How Does a Lower SSTI Threshold Affect a Systematic Internaliser’s Quoting Obligations?](https://options.greeks.live/question/how-does-a-lower-ssti-threshold-affect-a-systematic-internalisers-quoting-obligations/)
![A sleek, metallic control mechanism with a luminous teal-accented sphere symbolizes high-fidelity execution within institutional digital asset derivatives trading. Its robust design represents Prime RFQ infrastructure enabling RFQ protocols for optimal price discovery, liquidity aggregation, and low-latency connectivity in algorithmic trading environments.](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-execution-control-for-optimal-market-microstructure-precision.jpg)

A lower SSTI threshold expands an SI's mandatory public quoting, increasing information risk and necessitating wider pricing spreads.

- 
### [How Do Regulatory Frameworks like MiFID II Impact Algorithmic Transparency and Behavior in Illiquid Derivative Markets?](https://options.greeks.live/question/how-do-regulatory-frameworks-like-mifid-ii-impact-algorithmic-transparency-and-behavior-in-illiquid-derivative-markets/)
![A stylized spherical system, symbolizing an institutional digital asset derivative, rests on a robust Prime RFQ base. Its dark core represents a deep liquidity pool for algorithmic trading. A blue band signifies high-fidelity execution protocols, ensuring optimal price discovery and capital efficiency within market microstructure, enhancing alpha generation.](https://options.greeks.live/wp-content/uploads/2025/08/institutional-grade-rfq-protocol-engine-facilitating-best-execution-and-liquidity-aggregation-for-digital-asset-derivatives.jpg)

MiFID II mandates a systemic framework of transparency and control, transforming algorithmic behavior in illiquid markets into a disciplined, data-driven process.

- 
### [What Is the Operational Impact of the Recent Removal of LIS and SSTI for Post-Trade Reporting?](https://options.greeks.live/question/what-is-the-operational-impact-of-the-recent-removal-of-lis-and-ssti-for-post-trade-reporting/)
![A sophisticated dark-hued institutional-grade digital asset derivatives platform interface, featuring a glowing aperture symbolizing active RFQ price discovery and high-fidelity execution. The integrated intelligence layer facilitates atomic settlement and multi-leg spread processing, optimizing market microstructure for prime brokerage operations and capital efficiency. This represents a robust crypto derivatives OS.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-crypto-derivatives-rfq-engine-intelligence-layer.jpg)

The removal of LIS/SSTI deferrals mandates a systemic shift to automated, real-time risk and execution management.

- 
### [What Are the Operational Risks of Incorrectly Applying the SSTI Threshold in an RFQ System?](https://options.greeks.live/question/what-are-the-operational-risks-of-incorrectly-applying-the-ssti-threshold-in-an-rfq-system/)
![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)

Incorrect SSTI application creates operational flaws, leading to information leakage, adverse selection, and regulatory compliance failures.

- 
### [How Do Transparency Waivers and Deferrals Impact Liquidity in the Derivatives Market?](https://options.greeks.live/question/how-do-transparency-waivers-and-deferrals-impact-liquidity-in-the-derivatives-market/)
![Abstract spheres on a fulcrum symbolize Institutional Digital Asset Derivatives RFQ protocol. A small white sphere represents a multi-leg spread, balanced by a large reflective blue sphere for block trades. This illustrates optimal price discovery, high-fidelity execution, and capital efficiency within a Prime RFQ liquidity pool, crucial for market microstructure dynamics.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-dynamic-balance-for-optimal-high-fidelity-execution.jpg)

Transparency waivers are systemic controls that shield large orders from adverse selection, thereby preserving institutional liquidity.

- 
### [How Has MiFID II Affected Liquidity and Price Discovery in the European Derivatives Markets?](https://options.greeks.live/question/how-has-mifid-ii-affected-liquidity-and-price-discovery-in-the-european-derivatives-markets/)
![A deconstructed spherical object, segmented into distinct horizontal layers, slightly offset, symbolizing the granular components of an institutional digital asset derivatives platform. Each layer represents a liquidity pool or RFQ protocol, showcasing modular execution pathways and dynamic price discovery within a Prime RFQ architecture for high-fidelity execution and systemic risk mitigation.](https://options.greeks.live/wp-content/uploads/2025/08/modular-institutional-digital-asset-derivatives-execution-framework-dissected-for-optimal-rfq-performance.jpg)

MiFID II architected a fragmented yet data-rich derivatives market, demanding systemic adaptation for optimal execution.

---

## 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 SSTI Waiver Removal Impact EU Market Competitiveness?",
            "item": "https://options.greeks.live/question/how-does-the-ssti-waiver-removal-impact-eu-market-competitiveness/"
        }
    ]
}
```

```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-ssti-waiver-removal-impact-eu-market-competitiveness/"
    },
    "headline": "How Does the SSTI Waiver Removal Impact EU Market Competitiveness? \u25b4 Question",
    "description": "Removing the SSTI waiver subordinates institutional risk management to a mandate for pre-trade transparency, altering EU market competitiveness. \u25b4 Question",
    "url": "https://options.greeks.live/question/how-does-the-ssti-waiver-removal-impact-eu-market-competitiveness/",
    "datePublished": "2025-08-03T16:50:04+00:00",
    "dateModified": "2025-10-24T15:18:10+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/2025/08/institutional-digital-asset-derivatives-prime-os-market-microstructure-rfq-protocols.jpg",
        "caption": "This composition illustrates an institutional-grade digital asset derivatives platform. Interlocking modules represent RFQ protocol integration across diverse liquidity pools, enabling block trade and multi-leg spread execution. It showcases market microstructure dynamics, emphasizing high-fidelity execution and price discovery for Bitcoin options and Ethereum futures. The design reflects pre-trade analytics, counterparty risk management, and capital efficiency via a Prime RFQ, ensuring best execution and atomic settlement for algorithmic trading operations."
    },
    "keywords": [
        "Algorithmic Hedging",
        "Capital Markets Union",
        "EU Derivatives Market",
        "Hedging Costs",
        "Information Leakage",
        "Market Liquidity",
        "MiFIR",
        "Pre-Trade Transparency",
        "Regulatory Arbitrage",
        "Request for Quote",
        "Risk Management",
        "Risk Premium",
        "SSTI Waiver",
        "Systematic Internaliser",
        "Systematic Internalisers"
    ]
}
```

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

```json
{
    "@context": "https://schema.org",
    "@type": "FAQPage",
    "mainEntity": [
        {
            "@type": "Question",
            "name": "How Does This Affect EU End-Users?",
            "acceptedAnswer": {
                "@type": "Answer",
                "text": "For the corporations and investment funds that rely on derivatives to manage financial risks, the strategic consequences are equally significant. The primary objective of hedging is to reduce uncertainty at a predictable cost. The removal of the SSTI waiver directly threatens this objective. These clients will likely face a marketplace where liquidity for large transactions is thinner and more expensive. A manufacturing company seeking to hedge its foreign currency exposure may find that the cost of doing so erodes the economic benefit of the hedge itself. This could lead to a strategic decision to either accept a higher degree of unhedged risk or to seek out more favorable execution environments."
            }
        }
    ]
}
```


---

**Original URL:** https://options.greeks.live/question/how-does-the-ssti-waiver-removal-impact-eu-market-competitiveness/
