# In an RFQ Scenario, How Does the Legitimate Reliance Test Impact a Firm's Best Execution Duty to Professionals? ▴ Question

**Published:** 2025-08-09
**Categories:** Question

---

![A central hub with a teal ring represents a Principal's Operational Framework. Interconnected spherical execution nodes symbolize precise Algorithmic Execution and Liquidity Aggregation via RFQ Protocol](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-microstructure-prime-os-price-liquidity-alpha.jpg)

![A central circular element, vertically split into light and dark hemispheres, frames a metallic, four-pronged hub. Two sleek, grey cylindrical structures diagonally intersect behind it](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-rfq-protocol-for-digital-asset-derivatives-execution-1.jpg)

## Concept

The intersection of a firm’s best execution duty and the [Legitimate Reliance Test](https://prime.greeks.live/area/legitimate-reliance-test/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) within a Request for Quote (RFQ) scenario is a critical junction of regulatory obligation and operational mechanics. For a professional client, the RFQ is a targeted instrument for sourcing liquidity, often for substantial or complex positions, where direct, bilateral negotiation is paramount. It operates on a foundation of trust and assumed sophistication. The best execution mandate, codified under frameworks like MiFID II, requires a firm to take [all sufficient steps](https://prime.greeks.live/area/all-sufficient-steps/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) to obtain the best possible result for its client.

This is not a guarantee of the best price but a systemic commitment to a superior process. The core [execution factors](https://prime.greeks.live/question/how-does-mifid-ii-define-the-execution-factors-for-determining-best-execution/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) ▴ price, costs, speed, likelihood of execution, size, and nature of the order ▴ form the pillars of this duty.

Into this framework enters the [Legitimate Reliance](https://prime.greeks.live/question/how-does-the-legitimate-reliance-test-alter-best-execution-duties-for-principals/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) Test, a nuanced yet powerful modifier. This test provides a structured mechanism for a firm to determine whether a professional client is genuinely relying on the firm’s expertise to protect its interests in a transaction. If, after assessing a specific set of criteria, the firm concludes that the client is not [legitimately relying](https://prime.greeks.live/question/what-are-the-legal-risks-of-relying-on-common-law-frustration-instead-of-a-contractual-force-majeure-clause/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) on it, the firm’s best execution obligation can be partially or, in some interpretations, wholly disapplied for that transaction. This is a profound shift in responsibility.

It acknowledges that a [professional client](https://prime.greeks.live/question/what-are-the-key-differences-in-applying-best-execution-to-a-professional-client-versus-a-retail-client-for-otc-trades/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) may possess the market knowledge, access to information, and analytical capability to direct their own execution strategy, effectively taking control of certain execution factors. The test is not a blanket exemption; it is a dynamic assessment applied on a transactional basis.

> The Legitimate Reliance Test functions as a regulatory switch, transferring a degree of execution responsibility from the firm to the sophisticated professional client based on a structured assessment of the client’s independence.

The mechanism is most pronounced in principal-based [RFQ](https://prime.greeks.live/area/rfq/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) scenarios, where the firm acts as the counterparty. When a professional client requests a quote, they are initiating a direct inquiry. The firm provides a price at which it is willing to trade. The client’s decision to accept that quote, especially in a transparent market where they could “shop around,” is a strong signal.

The Legitimate Reliance Test formalizes the interpretation of this signal. It hinges on a cumulative, four-fold assessment ▴ who initiates the trade, the market convention for seeking multiple quotes, the level of price transparency, and any prior agreements between the firm and client. A positive finding of legitimate reliance is less likely when a sophisticated client initiates an RFQ in a transparent market, as their actions imply they are managing their own execution outcome. This transforms the firm’s duty from one of proactive optimization across all execution factors to one of providing a fair price under current market conditions and adhering to the client’s explicit instructions.

![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)

![Central axis, transparent geometric planes, coiled core. Visualizes institutional RFQ protocol for digital asset derivatives, enabling high-fidelity execution of multi-leg options spreads and price discovery](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-engine-2.jpg)

## Strategy

A firm’s strategic approach to the Legitimate Reliance Test is a foundational element of its institutional client service model. It dictates the architecture of its client-facing protocols and internal compliance frameworks. The strategy begins with robust [client classification](https://prime.greeks.live/area/client-classification/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), moving beyond the simple designation of “professional” to a deeper understanding of the client’s actual operational sophistication and trading patterns. This requires firms to establish clear policies for obtaining client consent and documenting the terms of their relationship, including explicit agreements on how RFQ orders will be handled.

Some firms may adopt a conservative stance, assuming [best execution](https://prime.greeks.live/area/best-execution/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) applies to all professional client orders unless specific, documented instructions prove otherwise. Others may build a more dynamic system that actively assesses legitimate reliance on a trade-by-trade basis, viewing it as a tool to provide sophisticated clients with greater control and flexibility.

![A futuristic, intricate central mechanism with luminous blue accents represents a Prime RFQ for Digital Asset Derivatives Price Discovery. Four sleek, curved panels extending outwards signify diverse Liquidity Pools and RFQ channels for Block Trade High-Fidelity Execution, minimizing Slippage and Latency in Market Microstructure operations](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-platform-2.jpg)

## Delineating Execution Service Levels

The core strategic decision is how to structure service levels based on the client’s reliance. A firm can design its RFQ platform and trading desk workflows to operate under distinct modes. For clients deemed to be legitimately relying on the firm, the system would trigger a comprehensive best execution process. This involves the trading desk actively checking multiple [liquidity sources](https://prime.greeks.live/question/what-are-the-primary-sources-of-contingent-liquidity-risk-for-an-institutional-trader/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), considering all execution factors, and documenting the rationale for the final execution venue and price.

Conversely, when the Legitimate Reliance Test indicates the client is directing their own execution ▴ for example, by providing a [specific instruction](https://prime.greeks.live/area/specific-instruction/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) to trade on a quote immediately ▴ the system’s primary function shifts. In this mode, the obligation becomes one of ensuring the provided quote is fair and not “manifestly out of date” at the time of execution, and then precisely following the client’s directive.

This bifurcation requires a significant investment in technology and training. Trading systems must be able to log not just the trade details but the context of the interaction ▴ the client’s specific instructions, the [market data](https://prime.greeks.live/area/market-data/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) at the time of the RFQ, and the firm’s assessment under the [four-fold test](https://prime.greeks.live/area/four-fold-test/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). This data is not merely for compliance; it is a strategic asset that allows the firm to demonstrate its value proposition, whether that is providing comprehensive execution services or facilitating client-directed trading with speed and reliability.

![A translucent blue sphere is precisely centered within beige, dark, and teal channels. This depicts RFQ protocol for digital asset derivatives, enabling high-fidelity execution of a block trade within a controlled market microstructure, ensuring atomic settlement and price discovery on a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/precision-execution-pathway-for-institutional-digital-asset-derivatives-leveraging-rfq-protocols-and-high-fidelity-market-microstructure.jpg)

## The Four-Fold Test as a Strategic Matrix

The four-fold cumulative test is the strategic matrix through which every professional client RFQ should be viewed. Each component informs the firm’s operational posture.

- **Who initiates the transaction** ▴ A client-initiated RFQ is the first data point suggesting self-direction. A firm-initiated suggestion for a trade, conversely, places a higher burden of reliance on the firm.

- **Market practice to ‘shop around’** ▴ In markets where it is standard for [professional clients](https://prime.greeks.live/area/professional-clients/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) to solicit quotes from multiple dealers (e.g. institutional FX or bond markets), a firm can more reasonably conclude that the client is managing their own competitive process. The firm’s strategy here is to provide a competitive quote, understanding it is one of several the client is evaluating.

- **Relative price transparency** ▴ For instruments traded in transparent markets with accessible real-time data, the client’s ability to self-assess the quality of a quote is high. For opaque, OTC instruments, the client is inherently more reliant on the firm’s pricing expertise, making it harder for the firm to disclaim its [best execution duty](https://prime.greeks.live/area/best-execution-duty/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite).

- **Information and agreements** ▴ This is the most explicit element. The firm’s client agreements and terms of business must clearly articulate how RFQs are handled and under what conditions legitimate reliance will be assumed or assessed. A clear, upfront agreement is the cornerstone of a defensible strategy.

> A firm’s application of the Legitimate Reliance Test is a direct reflection of its strategic posture toward its professional clients, balancing the provision of high-touch execution services against the facilitation of client-directed flow.

The following table outlines the strategic shifts in a firm’s obligations and operational focus when the Legitimate Reliance Test is applied in an RFQ scenario.

### Table 1 ▴ Strategic Shift in Best Execution Obligations

| Execution Parameter | Standard Best Execution Duty (Reliance Assumed) | Duty Under Legitimate Reliance (Client-Directed) |
| --- | --- | --- |
| Primary Obligation | Take all sufficient steps to obtain the best possible result across all execution factors. | Execute the order according to the client’s specific instructions, ensuring the price is fair and not manifestly out of date. |
| Price | Must be benchmarked against multiple available liquidity sources to ensure competitiveness. | The quoted price is offered; the client’s acceptance is the primary validation of its appropriateness. |
| Costs | Firm must consider all costs (explicit and implicit) and seek to minimize the total consideration for the client. | Costs are embedded in the quoted price; the client agrees to them upon accepting the quote. |
| Likelihood of Execution | Firm is responsible for choosing a counterparty/venue that maximizes the probability of a successful fill. | The client dictates the counterparty (the firm itself) by accepting the RFQ. The firm’s obligation is to honor the quote. |
| Venue Selection | Firm must have a process to evaluate and select from a range of eligible execution venues. | The venue is the firm’s principal book, as directed by the client’s engagement in the bilateral RFQ. |
| Documentation Focus | Evidence of the process taken to achieve the best result (e.g. competing quotes, market analysis). | Evidence of the client’s specific instruction and the fairness of the quote at the time of the transaction. |

![Sleek, engineered components depict an institutional-grade Execution Management System. The prominent dark structure represents high-fidelity execution of digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-for-optimized-price-discovery-high-fidelity-execution-and-market-microstructure.jpg)

![Metallic, reflective components depict high-fidelity execution within market microstructure. A central circular element symbolizes an institutional digital asset derivative, like a Bitcoin option, processed via RFQ protocol](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-high-fidelity-execution.jpg)

## Execution

The operational execution of the Legitimate Reliance Test within an RFQ workflow is a matter of precise, technology-enabled procedure. It requires the integration of compliance logic directly into the trading apparatus, ensuring that every RFQ from a professional client is handled according to a predefined and auditable process. This is not a matter for post-trade analysis alone; it must be embedded in the real-time actions of the trading desk and the systems they use.

![An abstract composition featuring two overlapping digital asset liquidity pools, intersected by angular structures representing multi-leg RFQ protocols. This visualizes dynamic price discovery, high-fidelity execution, and aggregated liquidity within institutional-grade crypto derivatives OS, optimizing capital efficiency and mitigating counterparty risk](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-optimizing-aggregated-liquidity-and-multi-leg-execution-via-advanced-market-microstructure.jpg)

## Operational Workflow for a Professional Client RFQ

An execution-focused workflow must contain clear decision gateways. The following procedural outline details the steps a firm would take from the moment an RFQ is received to its final booking, incorporating the Legitimate Reliance Test as a core component.

- **Order Ingestion and Initial Flagging** ▴ 

<li>An RFQ is received from a client classified as “Professional.” The order management system (OMS) immediately flags the order with this classification.

- The system cross-references the client’s profile to check for any pre-existing general agreements regarding [execution policy](https://prime.greeks.live/area/execution-policy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) and legitimate reliance.

</li>
- **Analysis of Client Instruction** ▴ 

<li>The trader or an automated system analyzes the RFQ for specificity. Does the client’s request constitute a “specific instruction”? For example, a request to “trade 100,000 XYZ at your price now” is a strong indicator of a specific instruction. A request for “your best level on 100,000 XYZ” may imply greater reliance.

- This analysis is the first step of the four-fold test ▴ the client has initiated the transaction.

</li>
- **Automated [Market Data Snapshot](https://prime.greeks.live/area/market-data-snapshot/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite)** ▴ 

<li>The execution management system (EMS) automatically captures a snapshot of relevant market data at the moment the RFQ is received. This includes the current bid/ask on lit venues, recent trade prices, and data from other relevant liquidity sources.

- This data serves two purposes ▴ it provides the basis for the firm’s quote and creates an objective record of market conditions for demonstrating the fairness of the price later. This addresses the “price transparency” component of the test.

</li>
- **The Legitimate Reliance Gateway** ▴ 

<li>Based on the client’s instruction, their pre-signed agreements, the nature of the instrument, and the market transparency, the system or trader makes a determination ▴ is the client legitimately relying on the firm for this trade?

- If **YES** (Reliance is present) ▴ The workflow proceeds down a “Full Best Execution” path. The trader must consult multiple liquidity sources (as per the firm’s policy) before finalizing the quote to the client, documenting why the final price is the best possible result.

- If **NO** (Reliance is absent) ▴ The workflow proceeds down a “Client-Directed” path. The firm’s primary obligation is to provide a fair quote based on the market data snapshot. The emphasis shifts from process to outcome adherence based on the client’s instruction.

</li>
- **Quotation and Client Acceptance** ▴ 

<li>The firm provides the quote to the client. The quote is time-stamped.

- The client accepts the quote. The acceptance is also time-stamped. The time elapsed between quotation and acceptance is recorded. If the delay is significant, the system may flag the quote as potentially “manifestly out of date,” requiring re-quoting.

</li>
- **Execution and Booking** ▴ 

<li>The trade is executed on the firm’s principal book.

- All associated data ▴ the initial RFQ, the client classification, the market data snapshot, the legitimate reliance determination, the quote timestamp, the acceptance timestamp, and any communications ▴ are bundled and archived with the trade record.

</li>

![An abstract, symmetrical four-pointed design embodies a Principal's advanced Crypto Derivatives OS. Its intricate core signifies the Intelligence Layer, enabling high-fidelity execution and precise price discovery across diverse liquidity pools](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-engine.jpg)

## Evidencing Compliance a Data-Centric Approach

Demonstrating compliance requires a granular approach to data capture. The burden of proof rests with the firm to show either that it took all sufficient steps to achieve best execution or that it was justified in its determination that the client was not legitimately relying on it. The table below details the critical data points that must be systematically recorded.

### Table 2 ▴ Audit Trail Data for RFQ Execution

| Data Category | Data Point | Purpose |
| --- | --- | --- |
| Client & Order | Client ID & Professional Classification | Establishes the applicability of the Legitimate Reliance Test. |
| | Full text/log of client’s RFQ instruction | Evidence of a “specific instruction” and client initiation. |
| | Timestamp of RFQ receipt | Anchors all subsequent analysis to a specific market moment. |
| Market Context | Lit market NBBO at time of RFQ | Provides a primary benchmark for price fairness. |
| | Data from other relevant liquidity pools (e.g. dark pools, other dealers) | Demonstrates market awareness and context for the quote. |
| | Instrument volatility and liquidity metrics | Contextualizes the quality and stability of the provided quote. |
| Firm Action | Legitimate Reliance assessment flag (Yes/No) | Documents the outcome of the decision gateway. |
| | Timestamp and price of quote provided to client | Records the firm’s offer. |
| | Timestamp of client acceptance | Records the client’s agreement to the terms. |
| | Final execution price and timestamp | The final record of the transaction. |
| | Trader notes/system logs on rationale (if applicable) | Provides qualitative support for the execution decision. |

Ultimately, the execution of the Legitimate Reliance Test is the execution of a data strategy. By systematically capturing the context and intent behind every professional client RFQ, a firm builds a robust, evidence-based framework that satisfies its regulatory duties while providing the sophisticated, high-speed service that professional clients demand.

![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)

## References

- Financial Conduct Authority. “Best execution and payment for order flow.” Thematic Review TR14/13, July 2014.

- “Order Execution Policy – Crédit Agricole CIB.” Crédit Agricole Corporate and Investment Bank, n.d.

- “MiFID Best Execution Policy ▴ Client Summary.” Barclays Investment Bank, n.d.

- Financial Conduct Authority. “COBS 11.2A Best execution ▴ MiFID provisions.” FCA Handbook.

- “The Importance of Best Execution.” Bovill, 18 Mar. 2015.

- “Best Execution Under MiFID II.” Celent, 2017.

- “Information on the RBCCM Europe Best Execution Policy.” RBC Capital Markets, n.d.

- Financial Industry Regulatory Authority. “Guidance on Best Execution Obligations in Equity, Options, and Fixed Income Markets.” Regulatory Notice 15-46, Nov. 2015.

- “Best Execution Policy (External) Information for Eligible Counterparties, Professional clients and Retail clients.” Cantor Fitzgerald, Oct. 2023.

- “Best Execution and Related Policies.” State Street Global Advisors, n.d.

![A sleek, cream and dark blue institutional trading terminal with a dark interactive display. It embodies a proprietary Prime RFQ, facilitating secure RFQ protocols for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-terminal-for-best-execution.jpg)

## Reflection

![An exposed institutional digital asset derivatives engine reveals its market microstructure. The polished disc represents a liquidity pool for price discovery](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-digital-asset-derivatives-rfq-execution-system.jpg)

## Calibrating the Execution System

The integration of the Legitimate Reliance Test into a firm’s operational framework is a calibration exercise. It requires tuning the firm’s systems ▴ both human and technological ▴ to correctly interpret the signals of client intent. This moves the concept of best execution beyond a monolithic compliance duty into a more dynamic and responsive service architecture. The data captured during each RFQ interaction does more than satisfy an audit requirement; it becomes the raw material for refining the system itself.

Analyzing patterns in how different clients interact with RFQs, under what market conditions they choose to provide specific instructions, and how they respond to quotes allows a firm to build a predictive understanding of its client base. This understanding is the foundation of a truly superior execution service, one that can seamlessly transition between providing comprehensive, high-touch guidance and facilitating client-directed execution with precision and speed. The ultimate objective is an operational state where the system anticipates the client’s required service level, delivering it without friction and evidencing every step of the process. This is the hallmark of an advanced execution framework.

![A sleek, dark reflective sphere is precisely intersected by two flat, light-toned blades, creating an intricate cross-sectional design. This visually represents institutional digital asset derivatives' market microstructure, where RFQ protocols enable high-fidelity execution and price discovery within dark liquidity pools, ensuring capital efficiency and managing counterparty risk via advanced Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-market-microstructure.jpg)

## Glossary

<a href="https://prime.greeks.live/area/legitimate-reliance-test/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, institutional-grade Prime RFQ component features intersecting transparent blades with a glowing core. This visualizes a precise RFQ execution engine, enabling high-fidelity execution and dynamic price discovery for digital asset derivatives, optimizing market microstructure for capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-digital-asset-derivatives-rfq-engine-for-best-execution-microstructure.jpg)

## Legitimate Reliance Test

Meaning ▴ The Legitimate Reliance Test defines a legal and operational framework establishing the validity of actions predicated on a reasonable expectation of another party's performance or adherence to a specified protocol. </a><a href="https://prime.greeks.live/area/all-sufficient-steps/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek metallic device with a central translucent sphere and dual sharp probes. This symbolizes an institutional-grade intelligence layer, driving high-fidelity execution for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-platform-precision.jpg)

## All Sufficient Steps

Meaning ▴ All Sufficient Steps denotes a design principle and operational mandate within a system where every component or process is engineered to autonomously achieve its defined objective without requiring external intervention or additional inputs beyond its initial parameters. </a><a href="https://prime.greeks.live/question/how-does-mifid-ii-define-the-execution-factors-for-determining-best-execution/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sophisticated metallic mechanism with a central pivoting component and parallel structural elements, indicative of a precision engineered RFQ engine. Polished surfaces and visible fasteners suggest robust algorithmic trading infrastructure for high-fidelity execution and latency optimization](https://options.greeks.live/wp-content/uploads/2025/07/precision-engineered-mechanism-for-institutional-digital-asset-derivatives-rfq-and-high-fidelity-execution.jpg)

## Execution Factors

MiFID II defines best execution factors as a holistic set of variables for achieving the optimal, context-dependent result for a client. </a><a href="https://prime.greeks.live/question/what-are-the-legal-risks-of-relying-on-common-law-frustration-instead-of-a-contractual-force-majeure-clause/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A precision execution pathway with an intelligence layer for price discovery, processing market microstructure data. A reflective block trade sphere signifies private quotation within a dark pool](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-precision-execution.jpg)

## Legitimately Relying

Relying on common law frustration invites legal uncertainty; a force majeure clause provides engineered, predictable risk control. </a><a href="https://prime.greeks.live/question/how-does-the-legitimate-reliance-test-alter-best-execution-duties-for-principals/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![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)

## Legitimate Reliance

The Legitimate Reliance Test is a systemic protocol that modifies a principal's duties by determining if best execution obligations are activated. </a><a href="https://prime.greeks.live/question/what-are-the-key-differences-in-applying-best-execution-to-a-professional-client-versus-a-retail-client-for-otc-trades/?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)

## Professional Client

Best execution for OTC trades shifts from a protective duty of ensuring fair cost for retail clients to enabling strategic, multi-factor performance for professionals. </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 sleek, metallic mechanism symbolizes an advanced institutional trading system. The central sphere represents aggregated liquidity and precise price discovery](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-engine-for-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/area/client-classification/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Precision-engineered multi-vane system with opaque, reflective, and translucent teal blades. This visualizes Institutional Grade Digital Asset Derivatives Market Microstructure, driving High-Fidelity Execution via RFQ protocols, optimizing Liquidity Pool aggregation, and Multi-Leg Spread management on a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/precision-engineered-multi-vane-system-illustrating-institutional-digital-asset-derivatives-rfq-protocols-market-microstructure-optimized-liquidity-aggregation-prime-os-high-fidelity-execution.jpg)

## Client Classification

Meaning ▴ Client Classification defines the structured categorization of institutional principals based on specific, predefined attributes, such as trading volume, asset class focus, risk tolerance, regulatory status, or strategic objectives within the institutional digital asset derivatives ecosystem. </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 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)

## 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/question/what-are-the-primary-sources-of-contingent-liquidity-risk-for-an-institutional-trader/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Abstract structure combines opaque curved components with translucent blue blades, a Prime RFQ for institutional digital asset derivatives. It represents market microstructure optimization, high-fidelity execution of multi-leg spreads via RFQ protocols, ensuring best execution and capital efficiency across liquidity pools](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-optimizing-market-microstructure-for-high-fidelity-execution-best-execution-price-discovery-across-liquidity-pools-and-prime-os.jpg)

## Liquidity Sources

Contingent liquidity risk originates from systemic feedback loops and structural choke points that amplify correlated demands for liquidity. </a><a href="https://prime.greeks.live/area/specific-instruction/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![An abstract visualization of a sophisticated institutional digital asset derivatives trading system. Intersecting transparent layers depict dynamic market microstructure, high-fidelity execution pathways, and liquidity aggregation for RFQ protocols](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-institutional-digital-asset-derivatives-rfq-execution.jpg)

## Specific Instruction

Meaning ▴ A Specific Instruction defines a precisely articulated, machine-readable directive governing a particular aspect of order execution or market interaction within a sophisticated trading system. </a><a href="https://prime.greeks.live/area/four-fold-test/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sophisticated RFQ engine module, its spherical lens observing market microstructure and reflecting implied volatility. This Prime RFQ component ensures high-fidelity execution for institutional digital asset derivatives, enabling private quotation for block trades](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-for-best-execution-protocol.jpg)

## Four-Fold Test

Meaning ▴ The Four-Fold Test represents a structured analytical framework employed to systematically evaluate and classify digital asset derivatives, ensuring their adherence to predefined criteria across critical dimensions such as underlying asset characteristics, derivative structural integrity, market intent, and jurisdictional regulatory compliance. </a><a href="https://prime.greeks.live/area/market-data/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A complex abstract digital rendering depicts intersecting geometric planes and layered circular elements, symbolizing a sophisticated RFQ protocol for institutional digital asset derivatives. The central glowing network suggests intricate market microstructure and price discovery mechanisms, ensuring high-fidelity execution and atomic settlement within a prime brokerage framework for capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-high-fidelity-execution-5.jpg)

## Market Data

Meaning ▴ Market Data comprises the real-time or historical pricing and trading information for financial instruments, encompassing bid and ask quotes, last trade prices, cumulative volume, and order book depth. </a><a href="https://prime.greeks.live/area/professional-clients/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, high-fidelity beige device with reflective black elements and a control point, set against a dynamic green-to-blue gradient sphere. This abstract representation symbolizes institutional-grade RFQ protocols for digital asset derivatives, ensuring high-fidelity execution and price discovery within market microstructure, powered by an intelligence layer for alpha generation and capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-institutional-digital-asset-derivatives-rfq-execution-terminal-system.jpg)

## Professional Clients

Meaning ▴ Professional Clients represent sophisticated institutional entities, including but not limited to investment firms, hedge funds, asset managers, and corporate treasuries, which possess the requisite expertise, experience, and financial capacity to comprehend and assume the risks associated with complex digital asset derivatives. </a><a href="https://prime.greeks.live/area/best-execution-duty/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A dynamically balanced stack of multiple, distinct digital devices, signifying layered RFQ protocols and diverse liquidity pools. Each unit represents a unique private quotation within an aggregated inquiry system, facilitating price discovery and high-fidelity execution for institutional-grade digital asset derivatives via an advanced Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/dynamic-rfq-protocol-stacks-powering-institutional-digital-asset-derivatives-liquidity-aggregation-and-best-execution.jpg)

## Best Execution Duty

Meaning ▴ Best Execution Duty mandates that an executing party take all reasonable steps to obtain the most favorable terms available for a client's order, considering a comprehensive set of factors beyond mere price. </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">
![Sleek, dark components with glowing teal accents cross, symbolizing high-fidelity execution pathways for institutional digital asset derivatives. A luminous, data-rich sphere in the background represents aggregated liquidity pools and global market microstructure, enabling precise RFQ protocols and robust price discovery within a Principal's operational framework](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-high-fidelity-execution-layer.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/market-data-snapshot/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A central metallic bar, representing an RFQ block trade, pivots through translucent geometric planes symbolizing dynamic liquidity pools and multi-leg spread strategies. This illustrates a Principal's operational framework for high-fidelity execution and atomic settlement within a sophisticated Crypto Derivatives OS, optimizing private quotation workflows](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-facilitating-high-fidelity-price-discovery-and-optimal-capital-efficiency-within-advanced-market-microstructure.jpg)

## Market Data Snapshot

Meaning ▴ A Market Data Snapshot represents a precise, timestamped capture of the order book state and last trade information for specified financial instruments across designated trading venues at a particular moment. </a>

**Tags:** [Four-Fold Test](https://options.greeks.live/area/four-fold-test/), [Best Execution Duty](https://options.greeks.live/area/best-execution-duty/), [Professional Clients](https://options.greeks.live/area/professional-clients/), [Financial Conduct Authority](https://options.greeks.live/area/financial-conduct-authority/), [MiFID II](https://options.greeks.live/area/mifid-ii/), [Order Execution](https://options.greeks.live/area/order-execution/)	

## Discover More

- 
### [What Are the Strategic Implications of the UK Abolishing the Share Trading Obligation?](https://options.greeks.live/question/what-are-the-strategic-implications-of-the-uk-abolishing-the-share-trading-obligation/)
![A sleek Execution Management System diagonally spans segmented Market Microstructure, representing Prime RFQ for Institutional Grade Digital Asset Derivatives. It rests on two distinct Liquidity Pools, one facilitating RFQ Block Trade Price Discovery, the other a Dark Pool for Private Quotation.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-execution-optimizing-rfq-protocols-across-segmented-liquidity-pools.jpg)

The UK's STO abolition empowers firms to architect superior execution pathways by accessing global liquidity pools.

- 
### [How Does the Use of Private Quotes Affect Best Execution Analysis under MiFID II?](https://options.greeks.live/question/how-does-the-use-of-private-quotes-affect-best-execution-analysis-under-mifid-ii/)
![A central, metallic, multi-bladed mechanism, symbolizing a core execution engine or RFQ hub, emits luminous teal data streams. These streams traverse through fragmented, transparent structures, representing dynamic market microstructure, high-fidelity price discovery, and liquidity aggregation. Underlying infrastructure signifies robust Principal's operational framework supporting institutional-grade digital asset derivatives.](https://options.greeks.live/wp-content/uploads/2025/07/principal-grade-digital-asset-derivatives-rfq-protocol-engine-facilitating-high-fidelity-execution-and-optimal-price-discovery-across-fragmented-market-microstructure.jpg)

Private quotes under MiFID II demand a robust data architecture to prove a non-public price was the optimal client outcome.

- 
### [How Does the Legitimate Reliance Test Alter Best Execution Obligations for RFQs?](https://options.greeks.live/question/how-does-the-legitimate-reliance-test-alter-best-execution-obligations-for-rfqs/)
![A sophisticated RFQ engine module, its spherical lens observing market microstructure and reflecting implied volatility. This Prime RFQ component ensures high-fidelity execution for institutional digital asset derivatives, enabling private quotation for block trades.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-for-best-execution-protocol.jpg)

The Legitimate Reliance Test transforms best execution for RFQs from a rigid procedural mandate into a dynamic, evidence-based judgment of client dependency.

- 
### [How Does MiFID II Redefine the Concept of Best Execution for RFQs?](https://options.greeks.live/question/how-does-mifid-ii-redefine-the-concept-of-best-execution-for-rfqs/)
![Intersecting digital architecture with glowing conduits symbolizes Principal's operational framework. An RFQ engine ensures high-fidelity execution of Institutional Digital Asset Derivatives, facilitating block trades, multi-leg spreads. Optimized market microstructure drives price discovery, capital efficiency for Bitcoin options, Ethereum futures.](https://options.greeks.live/wp-content/uploads/2025/07/principal-digital-asset-derivatives-rfq-engine-high-fidelity-execution.jpg)

MiFID II re-architects RFQ best execution by mandating a shift to a data-driven, auditable system proving all sufficient steps were taken.

- 
### [How Does MiFID II Define the Best Execution Factors for RFQ Protocols?](https://options.greeks.live/question/how-does-mifid-ii-define-the-best-execution-factors-for-rfq-protocols/)
![Smooth, reflective, layered abstract shapes on dark background represent institutional digital asset derivatives market microstructure. This depicts RFQ protocols, facilitating liquidity aggregation, high-fidelity execution for multi-leg spreads, price discovery, and Principal's operational framework efficiency.](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-protocol-multi-leg-spreads.jpg)

MiFID II defines RFQ best execution as a provable, multi-factor process ensuring the most favorable client outcome.

- 
### [How Do Regulatory Frameworks like MiFID II Define Best Execution for Over-The-Counter Instruments?](https://options.greeks.live/question/how-do-regulatory-frameworks-like-mifid-ii-define-best-execution-for-over-the-counter-instruments/)
![A precision mechanism, symbolizing an algorithmic trading engine, centrally mounted on a market microstructure surface. Lens-like features represent liquidity pools and an intelligence layer for pre-trade analytics, enabling high-fidelity execution of institutional grade digital asset derivatives via RFQ protocols within a Principal's operational framework.](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-protocol-microstructure.jpg)

MiFID II defines OTC best execution as a continuous, evidence-based obligation to use a verifiable system for achieving the best possible result.

- 
### [How Does MiFID II Specifically Address RFQ Protocols in Its Best Execution Framework?](https://options.greeks.live/question/how-does-mifid-ii-specifically-address-rfq-protocols-in-its-best-execution-framework/)
![A precision-engineered blue mechanism, symbolizing a high-fidelity execution engine, emerges from a rounded, light-colored liquidity pool component, encased within a sleek teal institutional-grade shell. This represents a Principal's operational framework for digital asset derivatives, demonstrating algorithmic trading logic and smart order routing for block trades via RFQ protocols, ensuring atomic settlement.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-crypto-derivatives-os-core-algorithmic-execution-engine.jpg)

MiFID II mandates that RFQ protocols operate within a data-driven, auditable system to prove best execution.

- 
### [How Do MiFID II and FINRA Best Execution Rules Differ for RFQs?](https://options.greeks.live/question/how-do-mifid-ii-and-finra-best-execution-rules-differ-for-rfqs/)
![A stylized RFQ protocol engine, featuring a central price discovery mechanism and a high-fidelity execution blade. Translucent blue conduits symbolize atomic settlement pathways for institutional block trades within a Crypto Derivatives OS, ensuring capital efficiency and best execution.](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-rfq-execution-for-digital-asset-derivatives.jpg)

MiFID II demands a prescriptive, data-proven process for RFQs, while FINRA requires a principles-based, periodically reviewed diligence.

- 
### [How Should a Firm’s Order Execution Policy Define the Use Cases for RFQ versus Lit Market Execution?](https://options.greeks.live/question/how-should-a-firms-order-execution-policy-define-the-use-cases-for-rfq-versus-lit-market-execution/)
![A sleek, abstract system interface with a central spherical lens representing real-time Price Discovery and Implied Volatility analysis for institutional Digital Asset Derivatives. Its precise contours signify High-Fidelity Execution and robust RFQ protocol orchestration, managing latent liquidity and minimizing slippage for optimized Alpha Generation.](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-institutional-digital-asset-derivatives-execution-via-optimized-rfq-protocols-enhancing-market-microstructure.jpg)

An execution policy defines RFQ vs. lit markets by mapping order size and liquidity to the optimal protocol for managing information leakage.

---

## 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": "In an RFQ Scenario, How Does the Legitimate Reliance Test Impact a Firm&#8217;s Best Execution Duty to Professionals?",
            "item": "https://options.greeks.live/question/in-an-rfq-scenario-how-does-the-legitimate-reliance-test-impact-a-firms-best-execution-duty-to-professionals/"
        }
    ]
}
```

```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/in-an-rfq-scenario-how-does-the-legitimate-reliance-test-impact-a-firms-best-execution-duty-to-professionals/"
    },
    "headline": "In an RFQ Scenario, How Does the Legitimate Reliance Test Impact a Firm's Best Execution Duty to Professionals? \u25b4 Question",
    "description": "The Legitimate Reliance Test recalibrates best execution from a uniform process to a dynamic duty, aligning the firm's obligation with the professional client's demonstrated expertise in an RFQ. \u25b4 Question",
    "url": "https://options.greeks.live/question/in-an-rfq-scenario-how-does-the-legitimate-reliance-test-impact-a-firms-best-execution-duty-to-professionals/",
    "datePublished": "2025-08-09T08:09:50+00:00",
    "dateModified": "2025-08-09T08:09:54+00:00",
    "articleSection": [
        "Question"
    ],
    "author": {
        "@id": "https://greeks.live/#organization"
    },
    "publisher": {
        "@id": "https://greeks.live/#organization"
    },
    "image": {
        "@type": "ImageObject",
        "url": "https://options.greeks.live/wp-content/uploads/2025/07/dynamic-rfq-protocol-stacks-powering-institutional-digital-asset-derivatives-liquidity-aggregation-and-best-execution.jpg",
        "caption": "A precarious yet stable stack of various colored digital handsets symbolizes the complex aggregation of RFQ protocols and latent liquidity within institutional trading. This visual metaphor illustrates the multi-faceted nature of market microstructure and the precision required for best execution of digital asset derivatives. It highlights how an Intelligence Layer manages multi-leg spread strategies, minimizing slippage and optimizing capital efficiency through sophisticated algorithmic trading and atomic settlement capabilities."
    },
    "keywords": [
        "All Sufficient Steps",
        "Best Execution",
        "Best Execution Duty",
        "Best Execution Policy",
        "Client Classification",
        "COBS 11.2a",
        "Execution Policy",
        "Financial Conduct Authority",
        "Four-Fold Test",
        "Legitimate Reliance Test",
        "Market Data",
        "Market Data Snapshot",
        "MiFID II",
        "Order Execution",
        "Principal Trading",
        "Professional Clients",
        "Request for Quote",
        "RFQ",
        "Specific Instruction"
    ]
}
```

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


---

**Original URL:** https://options.greeks.live/question/in-an-rfq-scenario-how-does-the-legitimate-reliance-test-impact-a-firms-best-execution-duty-to-professionals/
