# How Has MiFID II's Best Execution Mandate Altered RFQ Workflows? ▴ Question

**Published:** 2025-08-05
**Categories:** Question

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![Two interlocking textured bars, beige and blue, abstractly represent institutional digital asset derivatives platforms. A blue sphere signifies RFQ protocol initiation, reflecting latent liquidity for atomic settlement](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-for-prime-os-execution.jpg)

![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)

## Concept

The Markets in Financial Instruments Directive II (MiFID II) fundamentally re-architected the operational meaning of best execution, transforming the [Request for Quote](https://prime.greeks.live/area/request-for-quote/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (RFQ) protocol from a straightforward bilateral price discovery mechanism into a structured, evidence-based component of an institution’s compliance and [execution quality](https://prime.greeks.live/area/execution-quality/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) framework. Prior to this regulatory intervention, an RFQ workflow could subsist on a foundation of established relationships and voice-based negotiation. The process was effective within its own context, yet it lacked the systemic transparency and quantifiable auditability demanded by the new regime. The mandate introduced a systemic requirement for firms to demonstrate, with verifiable data, that they are taking “all sufficient steps” to obtain the best possible result for their clients.

This directive expanded the definition of the “best possible result” beyond the singular dimension of price. It now constitutes a multi-variable equation that incorporates a spectrum of execution factors. These include not only the headline price of the financial instrument but also the associated costs of the transaction, the speed of execution, the likelihood of execution and settlement, and the size and nature of the order itself.

For [RFQ](https://prime.greeks.live/area/rfq/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) workflows, this meant that the simple act of soliciting a price from a counterparty was no longer sufficient. The entire process, from the selection of counterparties to the final execution, had to become a defensible, data-driven procedure.

> The regulation compels every firm to build and maintain a durable, transparent, and quantifiable audit trail for every RFQ, effectively turning a communications protocol into a rigorous data-gathering exercise.

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

## From Relationship to Record

The core operational shift was from a model based on implicit trust to one based on explicit proof. A portfolio manager could no longer simply state they used a particular dealer because of a long-standing relationship that consistently provided good pricing. [Under MiFID](https://prime.greeks.live/question/do-the-clearing-thresholds-for-non-financial-counterparties-under-emir-align-with-any-mifid-ii-trading-obligations/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) II, that assertion must be backed by a systematic record. The RFQ process became the primary mechanism for generating this record.

Each quote received is a data point. The time of the quote, the responding dealer, the depth of the market at that moment, and the final [execution price](https://prime.greeks.live/area/execution-price/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) all become critical inputs into a firm’s [Transaction Cost Analysis](https://prime.greeks.live/area/transaction-cost-analysis/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (TCA) and best execution monitoring systems.

This has profound implications for the technological architecture of a trading desk. What was once a phone call or a basic messaging interaction now requires integration with Order Management Systems ([OMS](https://prime.greeks.live/area/oms/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite)) and Execution Management Systems ([EMS](https://prime.greeks.live/area/ems/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite)). These systems must be configured to capture the full lifecycle of the RFQ, logging each stage of the inquiry and response to build the evidentiary record required by regulators. The RFQ is no longer just a conversation; it is a critical piece of compliance infrastructure.

![A pristine white sphere, symbolizing an Intelligence Layer for Price Discovery and Volatility Surface analytics, sits on a grey Prime RFQ chassis. A dark FIX Protocol conduit facilitates High-Fidelity Execution and Smart Order Routing for Institutional Digital Asset Derivatives RFQ protocols, ensuring Best Execution](https://options.greeks.live/wp-content/uploads/2025/08/institutional-grade-digital-asset-derivatives-rfq-protocols-optimizing-high-fidelity-execution-via-prime-os-intelligence.jpg)

## What Constitutes a Sufficient Step in the RFQ Process?

The term “all sufficient steps” is the conceptual core of the mandate, and its application to RFQs requires a deliberate and systematic approach. It means that a firm’s [execution policy](https://prime.greeks.live/area/execution-policy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) must clearly define how it will handle RFQs for different classes of financial instruments. For liquid, on-the-run bonds, for example, a [sufficient process might involve](https://prime.greeks.live/question/can-an-exempt-cta-transition-to-a-registered-status-and-what-does-that-process-involve/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) sending an RFQ to a broad panel of dealers through an electronic platform to ensure competitive tension. For a complex, multi-leg OTC derivative, a sufficient process might involve a more targeted RFQ to a smaller number of dealers with demonstrated expertise and balance sheet capacity for that specific risk.

In both scenarios, the firm must be able to justify its strategy. Why were these specific dealers chosen? What were the market conditions at the time of the request?

How did the executed price compare to available pre-trade benchmarks? The [RFQ workflow](https://prime.greeks.live/area/rfq-workflow/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), therefore, evolves into a pre-programmed expression of the firm’s execution policy, designed to produce a defensible outcome and a clean [audit trail](https://prime.greeks.live/area/audit-trail/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) every time.

![An arc of interlocking, alternating pale green and dark grey segments, with black dots on light segments. This symbolizes a modular RFQ protocol for institutional digital asset derivatives, representing discrete private quotation phases or aggregated inquiry nodes](https://options.greeks.live/wp-content/uploads/2025/07/modular-rfq-protocol-segments-for-institutional-digital-asset-derivatives.jpg)

![A robust institutional framework composed of interlocked grey structures, featuring a central dark execution channel housing luminous blue crystalline elements representing deep liquidity and aggregated inquiry. A translucent teal prism symbolizes dynamic digital asset derivatives and the volatility surface, showcasing precise price discovery within a high-fidelity execution environment, powered by the Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-intelligence-layer.jpg)

## Strategy

The strategic response to MiFID II’s [best execution](https://prime.greeks.live/area/best-execution/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) mandate has centered on the systematic integration of data and technology into the RFQ workflow. This represents a fundamental move away from qualitative, relationship-based decision-making toward a quantitative, evidence-driven framework. The objective is to construct a trading architecture where every RFQ is an auditable event, systematically designed to satisfy the multi-faceted definition of best execution. This has catalyzed the adoption of [electronic RFQ](https://prime.greeks.live/area/electronic-rfq/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (e-RFQ) platforms and forced a re-evaluation of how dealing counterparties are selected and evaluated.

![A sharp metallic element pierces a central teal ring, symbolizing high-fidelity execution via an RFQ protocol gateway for institutional digital asset derivatives. This depicts precise price discovery and smart order routing within market microstructure, optimizing dark liquidity for block trades and capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-protocol-optimizing-liquidity-discovery-and-smart-order-routing.jpg)

## The Rise of the Electronic RFQ Platform

The most significant strategic adaptation has been the accelerated shift from voice and chat-based RFQs to electronic platforms. These platforms provide the foundational architecture for a compliant workflow. They are engineered to capture the essential data points required for the audit trail, creating a centralized, time-stamped record of the entire process.

This includes [which dealers](https://prime.greeks.live/question/in-a-cross-border-insolvency-which-factors-determine-which-jurisdictions-bankruptcy-laws-will-apply/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) were sent the request, which dealers responded, the prices they quoted, and the time of each event. This systemic data capture is the bedrock of a modern [RFQ strategy](https://prime.greeks.live/area/rfq-strategy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite).

These platforms also enable more sophisticated execution strategies. For instance, a trader can simultaneously request quotes from a large panel of dealers, introducing greater competitive pressure than would be feasible through sequential voice calls. This structural advantage directly addresses the “price” and “cost” factors of the best execution equation. Furthermore, the ability to manage multiple RFQs concurrently through a single interface enhances the operational efficiency of the trading desk, addressing the “speed” factor.

> A firm’s RFQ strategy is now synonymous with its data strategy; the quality of one directly determines the defensibility of the other.

![A precision-engineered central mechanism, with a white rounded component at the nexus of two dark blue interlocking arms, visually represents a robust RFQ Protocol. This system facilitates Aggregated Inquiry and High-Fidelity Execution for Institutional Digital Asset Derivatives, ensuring Optimal Price Discovery and efficient Market Microstructure](https://options.greeks.live/wp-content/uploads/2025/07/centralized-hub-for-institutional-digital-asset-derivatives-rfq-protocol-aggregated-inquiry-and-optimal-price-discovery.jpg)

## A Comparative Analysis of RFQ Workflow Architectures

The strategic choices available to an institution can be understood by comparing the pre- and post-[MiFID II](https://prime.greeks.live/area/mifid-ii/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) workflow architectures. The regulation effectively rendered the traditional, manual model inadequate for meeting compliance obligations.

### Table 1 ▴ Comparison of Pre- and Post-MiFID II RFQ Workflows

| Process Component | Pre-MiFID II Architecture (Voice/Manual) | Post-MiFID II Architecture (Electronic/Systematic) |
| --- | --- | --- |
| Dealer Selection | Based on established relationships, perceived expertise, and past performance. Often informal and trader-discretionary. | Systematic and data-driven. Based on formal dealer scorecards measuring response rates, quote competitiveness, and post-trade performance. |
| Quotation Process | Sequential communication via phone or chat. Prone to information leakage and difficult to audit precisely. | Simultaneous or wave-based electronic requests to a pre-defined panel of dealers via a centralized platform. |
| Data Capture | Manual and fragmented. Traders may jot down notes, but a complete, time-stamped record is rare. | Automated and comprehensive. The e-RFQ platform logs every action, creating a complete audit trail from request to execution. |
| Best Execution Proof | Relies on trader attestation and qualitative justification. Difficult to prove systematically. | Based on quantitative analysis of the captured data (TCA). The firm can demonstrate it surveyed the available liquidity and selected the optimal quote based on its policy. |

![A polished metallic disc represents an institutional liquidity pool for digital asset derivatives. A central spike enables high-fidelity execution via algorithmic trading of multi-leg spreads](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-liquidity-system.jpg)

## How Did Data Become the Core of RFQ Strategy?

Under MiFID II, data is the raw material of compliance. A successful RFQ strategy is one that is designed to generate, capture, and analyze data at every stage. This has led to the development of sophisticated dealer selection methodologies.

- **[Dealer Scorecarding](https://prime.greeks.live/area/dealer-scorecarding/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite)** ▴ Many firms now maintain quantitative scorecards for their dealing counterparties. These scorecards are fed by the data captured in the e-RFQ platform and are used to systematically evaluate dealers on multiple criteria. This includes how often they respond to requests, the competitiveness of their quotes relative to other dealers and market benchmarks, and their fill rates. This data-driven approach replaces informal preference with a defensible, merit-based system for allocating RFQs.

- **Pre-Trade Analytics** ▴ Before an RFQ is even sent, advanced platforms can provide pre-trade analytics to inform the execution strategy. This might include data on the expected market impact of the trade, historical volatility patterns for the instrument, and an analysis of which dealers have recently been most active in that specific security. This intelligence allows the trader to construct a more effective RFQ, for example, by tailoring the size of the request or the composition of the dealer panel.

- **Post-Trade [TCA](https://prime.greeks.live/area/tca/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) Integration** ▴ The data from the RFQ workflow is a critical input for post-trade [Transaction Cost](https://prime.greeks.live/area/transaction-cost/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) Analysis. The TCA process compares the execution price against a range of benchmarks (e.g. arrival price, volume-weighted average price) to quantify the quality of the execution. By analyzing this data over time, a firm can refine its execution policies, identify which dealers consistently provide value, and demonstrate to regulators that it has a robust process for monitoring and improving its performance.

![A teal-blue textured sphere, signifying a unique RFQ inquiry or private quotation, precisely mounts on a metallic, institutional-grade base. Integrated into a Prime RFQ framework, it illustrates high-fidelity execution and atomic settlement for digital asset derivatives within market microstructure, ensuring capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-prime-os-execution-1.jpg)

![A precision mechanism with a central circular core and a linear element extending to a sharp tip, encased in translucent material. This symbolizes an institutional RFQ protocol's market microstructure, enabling high-fidelity execution and price discovery for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/precision-engineered-institutional-digital-asset-derivatives-rfq-execution-engine-microstructure-facilitating-optimal-price-discovery-and-best-execution.jpg)

## Execution

The execution of an RFQ workflow under MiFID II is a matter of precise operational protocol. It requires a technological and procedural architecture designed for systematic data capture and analysis. The mandate transforms the act of trading into the act of creating a verifiable record, where the quality of the audit trail is as important as the quality of the execution itself. This section details the specific data points, analytical models, and procedural steps that constitute a compliant and effective RFQ execution framework.

![Visualizing institutional digital asset derivatives market microstructure. A central RFQ protocol engine facilitates high-fidelity execution across diverse liquidity pools, enabling precise price discovery for multi-leg spreads](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-across-multi-asset-liquidity.jpg)

## The Anatomy of a Compliant RFQ Audit Trail

The core of MiFID II execution is the ability to reconstruct the entire lifecycle of an order. For an RFQ, this means capturing a granular set of data points that allow a third-party observer, such as a regulator, to understand the rationale behind every decision. The integration between the [Execution Management System](https://prime.greeks.live/area/execution-management-system/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (EMS) and the firm’s data warehousing solution is critical for this purpose.

### Table 2 ▴ Essential Data Points for a MiFID II RFQ Audit Trail

| Data Category | Specific Data Points | Systemic Purpose |
| --- | --- | --- |
| Pre-Trade Conditions | Timestamp of order receipt, instrument identifier (ISIN), order size, market volatility metrics, available benchmark prices (e.g. composite mid-price). | To establish the market context at the moment the execution process began. This is the baseline for all subsequent TCA. |
| Dealer Selection | List of all dealers included in the RFQ panel, justification for selection (e.g. from approved dealer list, specialist for the asset class). | To demonstrate that the process for soliciting quotes was fair, competitive, and in line with the firm’s execution policy. |
| Quotation Process | Timestamp for each quote request sent, timestamp for each quote received, price and size of each quote, reason for any dealer declining to quote. | To create a complete and time-sequenced record of the price discovery process. This is the core evidence of the firm’s effort to find the best price. |
| Execution Decision | Timestamp of execution, executing dealer, final execution price and size, justification for selecting the winning quote (especially if it was not the best price). | To document the final trade and provide a clear rationale for the decision, linking it back to the multi-factor best execution criteria. |

![Sharp, intersecting elements, two light, two teal, on a reflective disc, centered by a precise mechanism. This visualizes institutional liquidity convergence for multi-leg options strategies in digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-block-trade-execution.jpg)

## A Procedural Guide to MiFID II Compliant RFQ Execution

Executing an RFQ in a compliant manner follows a clear, sequential process. Each step is designed to produce the necessary data for the audit trail and to ensure that the execution factors are properly considered.

- **Order Ingestion and Pre-Trade Analysis** ▴ The process begins when the client order is received and electronically captured in the OMS. At this stage, the system should automatically enrich the order with pre-trade data, including market conditions and relevant benchmarks. The trader or an automated system uses this information to determine the appropriate execution strategy, including whether an RFQ is the most suitable method.

- **Dealer Panel Construction** ▴ Based on the characteristics of the order (instrument, size, urgency) and the firm’s dealer management policy, a panel of dealers is selected. This selection must be systematic and justifiable. For a liquid corporate bond, this might mean sending the RFQ to the top 10 dealers on the firm’s scorecard for that asset class. The selection is logged by the EMS.

- **RFQ Dissemination and Monitoring** ▴ The RFQ is sent electronically to the selected panel. The EMS provides the trader with a real-time dashboard to monitor the responses. This dashboard shows which dealers have viewed the request, which have responded, and the current best quote. The system automatically logs every incoming quote with a precise timestamp.

- **Execution and Rationale Capture** ▴ The trader executes against the chosen quote. The system should require the trader to provide a justification if the selected quote is not the one with the best price. For example, a trader might choose a slightly worse price from a dealer who is offering a larger size, thereby reducing the market impact of breaking the order into smaller pieces. This justification is a critical part of the audit trail.

- **Post-Trade Data Feed** ▴ Upon execution, all the captured data is packaged and sent to the firm’s TCA system and data warehouse. This data is used to generate the required regulatory reports (e.g. [RTS 28](https://prime.greeks.live/area/rts-28/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), which details the top five execution venues used) and for internal performance monitoring.

> In the MiFID II framework, the execution system is also the compliance system; their functions are inextricably linked.

![A sleek, multi-component device in dark blue and beige, symbolizing an advanced institutional digital asset derivatives platform. The central sphere denotes a robust liquidity pool for aggregated inquiry](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-execution-platform-system.jpg)

## What Is the Role of Quantitative Analysis in RFQ Execution?

Quantitative analysis is no longer a peripheral activity; it is central to the execution process. Transaction [Cost Analysis](https://prime.greeks.live/area/cost-analysis/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) provides the framework for measuring and validating execution quality. For an RFQ, a key TCA metric is “price improvement,” which measures the difference between the executed price and the best quote received. Another is “spread capture,” which measures how much of the bid-ask spread the trader was able to capture for the client.

Consider a scenario where a firm executes a large block trade via RFQ. The TCA system would analyze the execution price against the arrival price (the market price when the order was received). It would also compare the quotes received from all dealers against the composite market view at the time of the request. This analysis can reveal patterns, such as whether certain dealers consistently provide better quotes in the morning or for particular types of instruments.

This quantitative feedback loop allows the firm to continuously refine its execution strategy, optimize its dealer panels, and provide concrete evidence to regulators that it is taking its best execution obligations seriously. The process moves from a simple transaction to a cycle of execution, measurement, and optimization.

![Geometric forms with circuit patterns and water droplets symbolize a Principal's Prime RFQ. This visualizes institutional-grade algorithmic trading infrastructure, depicting electronic market microstructure, high-fidelity execution, and real-time price discovery](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-derivatives-rfq-engine-prime-os-microstructure-analytics.jpg)

## References

- FCA. “Markets in Financial Instruments Directive II (MiFID II).” Financial Conduct Authority, 2018.

- ESMA. “Questions and Answers on MiFID II and MiFIR best execution topics.” European Securities and Markets Authority, 2017 (ESMA70-872942901-38).

- AFME. “Best Execution Reporting under MiFID II ▴ A guide for firms.” Association for Financial Markets in Europe, 2019.

- RBC Capital Markets. “MiFID II Best Execution & Order Handling Policy.” Royal Bank of Canada, 2021.

- Lehalle, Charles-Albert, and Sophie Laruelle, eds. Market Microstructure in Practice. World Scientific, 2018.

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

- BofA Securities. “Order Execution Policy.” Bank of America, 2022.

- Finansinspektionen. “Guide for drafting/review of Execution Policy under MiFID II.” Swedish Financial Supervisory Authority, 2017.

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

## Reflection

The integration of the MiFID II best execution mandate into RFQ workflows has established a new operational baseline. The procedural and technological adaptations are now well-understood components of the market’s architecture. The truly strategic question for an institution moves beyond mere compliance.

It becomes a question of system design. How can this regulatory requirement, with its emphasis on data structure and analytical rigor, be transformed into a source of competitive advantage?

Consider your own operational framework. Is the data generated by your RFQ process viewed as a compliance burden to be stored, or as a strategic asset to be mined? Does your execution system simply record what happened, or does it provide a feedback loop that systematically enhances future performance? The architecture you build to satisfy the regulator can also be the engine that drives superior execution quality.

The mandate forces a level of discipline and transparency that, when harnessed correctly, provides a clearer understanding of market dynamics, dealer performance, and your own firm’s execution capabilities. The ultimate goal is an operational system where compliance is the automatic byproduct of an architecture designed for performance.

![A clear, faceted digital asset derivatives instrument, signifying a high-fidelity execution engine, precisely intersects a teal RFQ protocol bar. This illustrates multi-leg spread optimization and atomic settlement within a Prime RFQ for institutional aggregated inquiry, ensuring best execution](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-precision-execution.jpg)

## Glossary

<a href="https://prime.greeks.live/area/execution-quality/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A polished, segmented metallic disk with internal structural elements and reflective surfaces. This visualizes a sophisticated RFQ protocol engine, representing the market microstructure of institutional digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-engine-1.jpg)

## Execution Quality

Meaning ▴ Execution Quality quantifies the efficacy of an order's fill, assessing how closely the achieved trade price aligns with the prevailing market price at submission, alongside consideration for speed, cost, and market impact. </a><a href="https://prime.greeks.live/area/request-for-quote/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A metallic rod, symbolizing a high-fidelity execution pipeline, traverses transparent elements representing atomic settlement nodes and real-time price discovery. It rests upon distinct institutional liquidity pools, reflecting optimized RFQ protocols for crypto derivatives trading across a complex volatility surface within Prime RFQ market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-trade-execution-pipeline-optimizing-rfq-protocols-for-best-execution-and-capital-efficiency.jpg)

## Request for Quote

Meaning ▴ A Request for Quote, or RFQ, constitutes a formal communication initiated by a potential buyer or seller to solicit price quotations for a specified financial instrument or block of instruments from one or more liquidity providers. </a><a href="https://prime.greeks.live/area/rfq/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A transparent glass bar, representing high-fidelity execution and precise RFQ protocols, extends over a white sphere symbolizing a deep liquidity pool for institutional digital asset derivatives. A small glass bead signifies atomic settlement within the granular market microstructure, supported by robust Prime RFQ infrastructure ensuring optimal price discovery and minimal slippage](https://options.greeks.live/wp-content/uploads/2025/07/institutional-grade-digital-asset-derivatives-rfq-execution-prime-os-intelligence-layer-facilitating-optimal-price-discovery-and-best-execution.jpg)

## Rfq

Meaning ▴ Request for Quote (RFQ) is a structured communication protocol enabling a market participant to solicit executable price quotations for a specific instrument and quantity from a selected group of liquidity providers. </a><a href="https://prime.greeks.live/question/do-the-clearing-thresholds-for-non-financial-counterparties-under-emir-align-with-any-mifid-ii-trading-obligations/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A central Principal OS hub with four radiating pathways illustrates high-fidelity execution across diverse institutional digital asset derivatives liquidity pools. Glowing lines signify low latency RFQ protocol routing for optimal price discovery, navigating market microstructure for multi-leg spread strategies](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-intelligence.jpg)

## Under Mifid

EMIR clearing thresholds for NFCs act as the direct trigger for MiFID II trading obligations, creating a unified system for risk and transparency. </a><a href="https://prime.greeks.live/area/transaction-cost-analysis/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Polished metallic disc on an angled spindle represents a Principal's operational framework. This engineered system ensures high-fidelity execution and optimal price discovery for institutional digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/08/high-fidelity-digital-asset-derivatives-rfq-execution-platform.jpg)

## Transaction Cost Analysis

Meaning ▴ Transaction Cost Analysis (TCA) is the quantitative methodology for assessing the explicit and implicit costs incurred during the execution of financial trades. </a><a href="https://prime.greeks.live/area/execution-price/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Intersecting translucent planes and a central financial instrument depict RFQ protocol negotiation for block trade execution. Glowing rings emphasize price discovery and liquidity aggregation within market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-orchestration-for-high-fidelity-execution-across-prime-os.jpg)

## Execution Price

Meaning ▴ The Execution Price represents the definitive, realized price at which a specific order or trade leg is completed within a financial market system. </a><a href="https://prime.greeks.live/area/ems/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Sleek metallic components with teal luminescence precisely intersect, symbolizing an institutional-grade Prime RFQ. This represents multi-leg spread execution for digital asset derivatives via RFQ protocols, ensuring high-fidelity execution, optimal price discovery, and capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-best-execution-system.jpg)

## Ems

Meaning ▴ An Execution Management System (EMS) is a specialized software application that provides a consolidated interface for institutional traders to manage and execute orders across multiple trading venues and asset classes. </a><a href="https://prime.greeks.live/area/oms/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![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)

## Oms

Meaning ▴ An Order Management System, or OMS, functions as the central computational framework designed to orchestrate the entire lifecycle of a financial order within an institutional trading environment, from its initial entry through execution and subsequent post-trade allocation. </a><a href="https://prime.greeks.live/question/can-an-exempt-cta-transition-to-a-registered-status-and-what-does-that-process-involve/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Central mechanical pivot with a green linear element diagonally traversing, depicting a robust RFQ protocol engine for institutional digital asset derivatives. This signifies high-fidelity execution of aggregated inquiry and price discovery, ensuring capital efficiency within complex market microstructure and order book dynamics](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-engine-best-execution.jpg)

## Sufficient Process Might Involve

An exempt CTA transitions to registered status by withdrawing its exemption and completing the NFA's full registration and membership process. </a><a href="https://prime.greeks.live/area/execution-policy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Central metallic hub connects beige conduits, representing an institutional RFQ engine for digital asset derivatives. It facilitates multi-leg spread execution, ensuring atomic settlement, optimal price discovery, and high-fidelity execution within a Prime RFQ for capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-digital-asset-derivatives-rfq-protocol-execution-hub.jpg)

## Execution Policy

Meaning ▴ An Execution Policy defines a structured set of rules and computational logic governing the handling and execution of financial orders within a trading system. </a><a href="https://prime.greeks.live/area/rfq-workflow/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![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](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-engine-visualizing-microstructure.jpg)

## Rfq Workflow

Meaning ▴ The RFQ Workflow defines a structured, programmatic process for a principal to solicit actionable price quotations from a pre-defined set of liquidity providers for a specific financial instrument and notional quantity. </a><a href="https://prime.greeks.live/area/audit-trail/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A precise metallic central hub with sharp, grey angular blades signifies high-fidelity execution and smart order routing. Intersecting transparent teal planes represent layered liquidity pools and multi-leg spread structures, illustrating complex market microstructure for efficient price discovery within institutional digital asset derivatives RFQ protocols](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-for-high-fidelity-execution-across-market-microstructure-dynamics.jpg)

## Audit Trail

Meaning ▴ An Audit Trail is a chronological, immutable record of system activities, operations, or transactions within a digital environment, detailing event sequence, user identification, timestamps, and specific actions. </a><a href="https://prime.greeks.live/area/best-execution/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A modular component, resembling an RFQ gateway, with multiple connection points, intersects a high-fidelity execution pathway. This pathway extends towards a deep, optimized liquidity pool, illustrating robust market microstructure for institutional digital asset derivatives trading and atomic settlement](https://options.greeks.live/wp-content/uploads/2025/07/rfq-protocol-layer-connecting-institutional-digital-asset-liquidity-pools.jpg)

## Best Execution

Meaning ▴ Best Execution is the obligation to obtain the most favorable terms reasonably available for a client's order. </a><a href="https://prime.greeks.live/area/electronic-rfq/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A dark central hub with three reflective, translucent blades extending. This represents a Principal's operational framework for digital asset derivatives, processing aggregated liquidity and multi-leg spread inquiries](https://options.greeks.live/wp-content/uploads/2025/07/institutional-rfq-protocol-engine-for-high-fidelity-digital-asset-derivatives.jpg)

## Electronic Rfq

Meaning ▴ An Electronic RFQ, or Request for Quote, represents a structured digital communication protocol enabling an institutional participant to solicit price quotations for a specific financial instrument from a pre-selected group of liquidity providers. </a><a href="https://prime.greeks.live/question/in-a-cross-border-insolvency-which-factors-determine-which-jurisdictions-bankruptcy-laws-will-apply/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A central core, symbolizing a Crypto Derivatives OS and Liquidity Pool, is intersected by two abstract elements. These represent Multi-Leg Spread and Cross-Asset Derivatives executed via RFQ Protocol](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-derivatives-rfq-protocol-multi-leg-spread-execution.jpg)

## Which Dealers

The jurisdiction's bankruptcy laws are determined by the debtor's "Center of Main Interests" (COMI). </a><a href="https://prime.greeks.live/area/rfq-strategy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Smooth, glossy, multi-colored discs stack irregularly, topped by a dome. This embodies institutional digital asset derivatives market microstructure, with RFQ protocols facilitating aggregated inquiry for multi-leg spread execution](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-engine-for-prime-os-best-execution.jpg)

## Rfq Strategy

Meaning ▴ An RFQ Strategy, or Request for Quote Strategy, defines a systematic approach for institutional participants to solicit price quotes from multiple liquidity providers for a specific digital asset derivative instrument. </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 visualization of institutional RFQ protocol for digital asset derivatives. Translucent layers symbolize dark liquidity pools within complex market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-engine-6.jpg)

## Mifid Ii

Meaning ▴ MiFID II, the Markets in Financial Instruments Directive II, constitutes a comprehensive regulatory framework enacted by the European Union to govern financial markets, investment firms, and trading venues. </a><a href="https://prime.greeks.live/area/dealer-scorecarding/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A textured spherical digital asset, resembling a lunar body with a central glowing aperture, is bisected by two intersecting, planar liquidity streams. This depicts institutional RFQ protocol, optimizing block trade execution, price discovery, and multi-leg options strategies with high-fidelity execution within a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-optimized-rfq-execution-protocol-dynamic-liquidity-management.jpg)

## Dealer Scorecarding

Meaning ▴ Dealer Scorecarding is a systematic, quantitative methodology employed by institutional principals to evaluate the performance of liquidity providers across various execution venues and asset classes within the digital asset derivatives landscape. </a><a href="https://prime.greeks.live/area/transaction-cost/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, multi-layered system representing an institutional-grade digital asset derivatives platform. Its precise components symbolize high-fidelity RFQ execution, optimized market microstructure, and a secure intelligence layer for private quotation, ensuring efficient price discovery and robust liquidity pool management](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-rfq-execution-digital-asset-derivatives-platform-prime-os.jpg)

## Transaction Cost

Meaning ▴ Transaction Cost represents the total quantifiable economic friction incurred during the execution of a trade, encompassing both explicit costs such as commissions, exchange fees, and clearing charges, alongside implicit costs like market impact, slippage, and opportunity cost. </a><a href="https://prime.greeks.live/area/tca/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![An abstract metallic circular interface with intricate patterns visualizes an institutional grade RFQ protocol for block trade execution. A central pivot holds a golden pointer with a transparent liquidity pool sphere and a blue pointer, depicting market microstructure optimization and high-fidelity execution for multi-leg spread price discovery](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-derivatives-rfq-market-microstructure-optimization.jpg)

## Tca

Meaning ▴ Transaction Cost Analysis (TCA) represents a quantitative methodology designed to evaluate the explicit and implicit costs incurred during the execution of financial trades. </a><a href="https://prime.greeks.live/area/execution-management-system/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A central rod, symbolizing an RFQ inquiry, links distinct liquidity pools and market makers. A transparent disc, an execution venue, facilitates price discovery](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-rfq-protocol-execution-optimization.jpg)

## Execution Management System

Meaning ▴ An Execution Management System (EMS) is a specialized software application engineered to facilitate and optimize the electronic execution of financial trades across diverse venues and asset classes. </a><a href="https://prime.greeks.live/area/rts-28/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Teal capsule represents a private quotation for multi-leg spreads within a Prime RFQ, enabling high-fidelity institutional digital asset derivatives execution. Dark spheres symbolize aggregated inquiry from liquidity pools](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-derivatives-rfq-prime-os-high-fidelity-execution.jpg)

## Rts 28

Meaning ▴ RTS 28 refers to Regulatory Technical Standard 28 under MiFID II, which mandates investment firms and market operators to publish annual reports on the quality of execution of transactions on trading venues and for financial instruments. </a><a href="https://prime.greeks.live/area/cost-analysis/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Glowing circular forms symbolize institutional liquidity pools and aggregated inquiry nodes for digital asset derivatives. Blue pathways depict RFQ protocol execution and smart order routing](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-prime-os-execution-microstructure.jpg)

## Cost Analysis

Meaning ▴ Cost Analysis constitutes the systematic quantification and evaluation of all explicit and implicit expenditures incurred during a financial operation, particularly within the context of institutional digital asset derivatives trading. </a>

**Tags:** [Market Microstructure](https://options.greeks.live/area/market-microstructure/), [Execution Policy](https://options.greeks.live/area/execution-policy/), [Dealer Scorecarding](https://options.greeks.live/area/dealer-scorecarding/), [Execution Quality](https://options.greeks.live/area/execution-quality/), [Best Execution](https://options.greeks.live/area/best-execution/), [Regulatory Compliance](https://options.greeks.live/area/regulatory-compliance/)	

## Discover More

- 
### [How Does the FIX Protocol Address Best Execution Requirements for RFQ Trades?](https://options.greeks.live/question/how-does-the-fix-protocol-address-best-execution-requirements-for-rfq-trades/)
![Two sharp, intersecting blades, one white, one blue, represent precise RFQ protocols and high-fidelity execution within complex market microstructure. Behind them, translucent wavy forms signify dynamic liquidity pools, multi-leg spreads, and volatility surfaces. This visual encapsulates prime brokerage capabilities for atomic settlement.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-optimized-liquidity-aggregation-principal-prime-os-intelligence-layer.jpg)

The FIX protocol addresses best execution for RFQs by structuring the negotiation into a precise, auditable electronic workflow.

- 
### [How Does an RFQ System Enhance Regulatory Compliance for Complex Trades?](https://options.greeks.live/question/how-does-an-rfq-system-enhance-regulatory-compliance-for-complex-trades/)
![A sleek, institutional-grade device, with a glowing indicator, represents a Prime RFQ terminal. Its angled posture signifies focused RFQ inquiry for Digital Asset Derivatives, enabling high-fidelity execution and precise price discovery within complex market microstructure, optimizing latent liquidity.](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-execution-terminal-facilitating-high-fidelity-price-discovery-and-optimal-liquidity-aggregation.jpg)

An RFQ system enhances regulatory compliance by creating a complete, time-stamped audit trail of the price discovery process for complex trades.

- 
### [How Does MiFID II Define the Best Execution Requirements for Firms?](https://options.greeks.live/question/how-does-mifid-ii-define-the-best-execution-requirements-for-firms/)
![A sleek, cream-colored, dome-shaped object with a dark, central, blue-illuminated aperture, resting on a reflective surface against a black background. This represents a cutting-edge Crypto Derivatives OS, facilitating high-fidelity execution for institutional digital asset derivatives. Its central aperture symbolizes intelligent price discovery and real-time market microstructure analysis, crucial for optimal RFQ protocol management and multi-leg spread strategies, embodying prime brokerage capabilities.](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-prime-os-high-fidelity-rfq-execution-engine-intelligence-layer.jpg)

MiFID II defines best execution as a firm's auditable, data-driven obligation to structure its entire trading process to consistently deliver the most favorable outcome for clients.

- 
### [How Does the Best Execution Obligation Apply to OTFs?](https://options.greeks.live/question/how-does-the-best-execution-obligation-apply-to-otfs/)
![A sleek, multi-component device in dark blue and beige, symbolizing an advanced institutional digital asset derivatives platform. The central sphere denotes a robust liquidity pool for aggregated inquiry. An angled module represents a precise RFQ protocol interface, ensuring high-fidelity execution, best execution, and optimal capital efficiency within the Prime RFQ.](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-execution-platform-system.jpg)

The best execution obligation for OTFs mandates a systematic, evidence-based process to ensure discretionary trading delivers the optimal client result.

- 
### [How Can a Firm Quantitatively Demonstrate Best Execution in a Restricted Rfq?](https://options.greeks.live/question/how-can-a-firm-quantitatively-demonstrate-best-execution-in-a-restricted-rfq/)
![A polished glass sphere reflecting diagonal beige, black, and cyan bands, rests on a metallic base against a dark background. This embodies RFQ-driven Price Discovery and High-Fidelity Execution for Digital Asset Derivatives, optimizing Market Microstructure and mitigating Counterparty Risk via Prime RFQ Private Quotation.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-best-execution-protocol.jpg)

A firm proves best execution in a restricted RFQ by systematically benchmarking every trade against a composite of all dealer quotes.

- 
### [What Are the Primary Technological Systems Required to Demonstrate Best Execution for Both Asset Classes?](https://options.greeks.live/question/what-are-the-primary-technological-systems-required-to-demonstrate-best-execution-for-both-asset-classes/)
![Central teal-lit mechanism with radiating pathways embodies a Prime RFQ for institutional digital asset derivatives. It signifies RFQ protocol processing, liquidity aggregation, and high-fidelity execution for multi-leg spread trades, enabling atomic settlement within market microstructure via quantitative analysis.](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-core-for-institutional-digital-asset-rfq-protocol-execution-engine.jpg)

A firm proves best execution with an integrated technology framework that unifies pre-trade analytics, smart order routing, and post-trade TCA into a single, evidence-producing system.

- 
### [What Are the Key Pillars of a MiFID II Compliant Best Execution Policy?](https://options.greeks.live/question/what-are-the-key-pillars-of-a-mifid-ii-compliant-best-execution-policy/)
![A precise RFQ engine extends into an institutional digital asset liquidity pool, symbolizing high-fidelity execution and advanced price discovery within complex market microstructure. This embodies a Principal's operational framework for multi-leg spread strategies and capital efficiency.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-rfq-engine-interfacing-core-liquidity-system.jpg)

A MiFID II best execution policy is a firm's documented system for delivering and proving the best possible trading outcome for its clients.

- 
### [How Can Transaction Cost Analysis Be Used to Definitively Prove Best Execution to a Regulator?](https://options.greeks.live/question/how-can-transaction-cost-analysis-be-used-to-definitively-prove-best-execution-to-a-regulator/)
![A dark, circular metallic platform features a central, polished spherical hub, bisected by a taut green band. This embodies a robust Prime RFQ for institutional digital asset derivatives, enabling high-fidelity execution via RFQ protocols, optimizing market microstructure for best execution, and mitigating counterparty risk through atomic settlement.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-optimizing-high-fidelity-execution-across-diverse-market-microstructures.jpg)

Transaction Cost Analysis offers definitive proof of best execution by translating fiduciary duty into a verifiable, data-driven narrative.

- 
### [How Does MiFID II’s Best Execution Framework Affect the Use of Request for Quote Systems?](https://options.greeks.live/question/how-does-mifid-iis-best-execution-framework-affect-the-use-of-request-for-quote-systems/)
![A dark blue, precision-engineered blade-like instrument, representing a digital asset derivative or multi-leg spread, rests on a light foundational block, symbolizing a private quotation or block trade. This structure intersects robust teal market infrastructure rails, indicating RFQ protocol execution within a Prime RFQ for high-fidelity execution and liquidity aggregation in institutional trading.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-framework-multi-leg-spreads-best-execution-capital-efficiency.jpg)

MiFID II mandates that RFQ systems evolve from simple price inquiry tools into auditable, data-centric frameworks proving optimal execution.

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        "caption": "This abstract image visualizes a central RFQ protocol engine orchestrating principal liquidity aggregation across distinct institutional liquidity pools for digital asset derivatives. It symbolizes the complex market microstructure enabling high-fidelity execution and optimal price discovery via multi-dealer RFQ workflows. This sophisticated Crypto Derivatives OS optimizes block trades through smart order routing, minimizing slippage and ensuring best execution."
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                "text": "The term \"all sufficient steps\" is the conceptual core of the mandate, and its application to RFQs requires a deliberate and systematic approach. It means that a firm's execution policy must clearly define how it will handle RFQs for different classes of financial instruments. For liquid, on-the-run bonds, for example, a sufficient process might involve sending an RFQ to a broad panel of dealers through an electronic platform to ensure competitive tension. For a complex, multi-leg OTC derivative, a sufficient process might involve a more targeted RFQ to a smaller number of dealers with demonstrated expertise and balance sheet capacity for that specific risk."
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                "text": "Quantitative analysis is no longer a peripheral activity; it is central to the execution process. Transaction Cost Analysis provides the framework for measuring and validating execution quality. For an RFQ, a key TCA metric is \"price improvement,\" which measures the difference between the executed price and the best quote received. Another is \"spread capture,\" which measures how much of the bid-ask spread the trader was able to capture for the client."
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```


---

**Original URL:** https://options.greeks.live/question/how-has-mifid-iis-best-execution-mandate-altered-rfq-workflows/
