# What Are the Best Execution Documentation Requirements When Using an SI versus an On-Venue System? ▴ Question

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

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![Symmetrical, engineered system displays translucent blue internal mechanisms linking two large circular components. This represents an institutional-grade Prime RFQ for digital asset derivatives, enabling RFQ protocol execution, high-fidelity execution, price discovery, dark liquidity management, and atomic settlement](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-prime-os-core.jpg)

![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)

## Concept

The distinction between executing a trade via a [Systematic Internaliser](https://prime.greeks.live/area/systematic-internaliser/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (SI) versus an [on-venue system](https://prime.greeks.live/area/on-venue-system/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), such as a regulated market or a Multilateral Trading Facility (MTF), represents a fundamental choice in a firm’s operational design. This decision directly shapes the architecture of its compliance and documentation framework. The core of the matter resides in how a firm chooses to interact with the broader market ecosystem and the specific obligations it inherits by doing so. Understanding these pathways is the foundational step in constructing a resilient and efficient execution and reporting apparatus.

An on-venue execution places an order within a regulated, multilateral environment where numerous participants interact based on a common set of rules. This structure provides a degree of inherent transparency and a centralized record of activity. In contrast, execution with an SI is a bilateral engagement.

The SI uses its own capital to execute client orders outside of a traditional public order book. While governed by stringent regulations, the nature of this interaction is fundamentally different, creating a distinct set of [documentation requirements](https://prime.greeks.live/area/documentation-requirements/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) centered on demonstrating that this bilateral execution was the best possible outcome for the client, even though it occurred away from the centralized price discovery mechanisms of a public venue.

Consequently, the documentation requirements for each are not a simple matter of preference but a direct reflection of their operational mechanics. For on-venue systems, documentation often leans on the public data and rulebooks provided by the venue itself, supplemented by the firm’s own records. For an SI, the burden of proof is more internalized.

The firm must meticulously construct and maintain a comprehensive data narrative that justifies its execution decisions on a trade-by-trade basis, proving that its internal pricing and liquidity delivered a result compliant with the overarching [best execution](https://prime.greeks.live/area/best-execution/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) mandate. This necessitates a robust internal framework for data capture, analysis, and reporting, forming the bedrock of its regulatory legitimacy.

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![Two distinct ovular components, beige and teal, slightly separated, reveal intricate internal gears. This visualizes an Institutional Digital Asset Derivatives engine, emphasizing automated RFQ execution, complex market microstructure, and high-fidelity execution within a Principal's Prime RFQ for optimal price discovery and block trade capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-automated-rfq-execution-microstructure-revealing-principal-prime-os-intelligence-layer-for-high-fidelity-execution-and-capital-efficiency.jpg)

## Strategy

The strategic decision to utilize a Systematic Internaliser or an on-venue system carries profound implications for a firm’s documentation and compliance posture. This choice is not merely operational; it is a declaration of the firm’s execution philosophy and its approach to managing transparency, counterparty relationships, and information leakage. The corresponding [documentation strategy](https://prime.greeks.live/area/documentation-strategy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) must be purpose-built to support this philosophy while satisfying the rigorous demands of regulations like [MiFID II](https://prime.greeks.live/area/mifid-ii/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite).

> A firm’s execution documentation strategy is a direct reflection of its chosen method of market interaction and risk management.

![A cutaway reveals the intricate market microstructure of an institutional-grade platform. Internal components signify algorithmic trading logic, supporting high-fidelity execution via a streamlined RFQ protocol for aggregated inquiry and price discovery within a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-execution-for-digital-asset-derivatives-via-rfq-protocols.jpg)

## The Divergent Paths of Data and Disclosure

The documentation trail for an on-venue trade is, by its nature, semi-public. The venue itself generates a substantial portion of the relevant data, including timestamps, prices, and volumes, which are available to regulators and, to some extent, the market. The firm’s strategic documentation task is to augment this data with its internal decision-making records, demonstrating why that particular venue was chosen from its list of approved execution venues.

Conversely, the SI documentation strategy is an exercise in self-sufficiency. The SI is the execution venue. Therefore, it bears the full responsibility for creating and maintaining the entire data ecosystem that proves best execution.

This includes not just the final execution price but also the context of that price relative to public market data at the moment of the trade. The strategic imperative is to build a fortress of data that can withstand regulatory scrutiny and client inquiries, proving that the internal execution was superior or at least equivalent to what could have been achieved on a public venue.

![A central processing core with intersecting, transparent structures revealing intricate internal components and blue data flows. This symbolizes an institutional digital asset derivatives platform's Prime RFQ, orchestrating high-fidelity execution, managing aggregated RFQ inquiries, and ensuring atomic settlement within dynamic market microstructure, optimizing capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-trading-system-facilitating-high-fidelity-rfq-protocol-optimization-for-best-execution-and-atomic-settlement.jpg)

## Comparative Documentation Obligations

The following table outlines the strategic differences in documentation and reporting obligations between the two models:

| Obligation Category | On-Venue System Execution | Systematic Internaliser (SI) Execution |
| --- | --- | --- |
| Primary Locus of Proof | Demonstrating the rationale for venue selection from an approved list. Leveraging public venue data. | Demonstrating the quality of the internal execution price and process. Creating a complete, self-contained data record. |
| Key Documentation Sets | Order execution policy, records of venue selection analysis, post-trade data from the venue, and Top 5 Venue reports (RTS 28). | Order execution policy, pre-trade quote data, detailed execution quality reports (RTS 27), client consent for off-venue execution, and Top 5 Venue reports (RTS 28). |
| Client Communication | Disclosure of the execution policy and the venues used. | Explicit client information and express consent regarding the possibility of off-venue execution. |
| Data Reporting | Firm is responsible for its annual RTS 28 report, summarizing the top five venues used. | SI is responsible for quarterly RTS 27 reports on execution quality AND its own annual RTS 28 report. |

![Intricate core of a Crypto Derivatives OS, showcasing precision platters symbolizing diverse liquidity pools and a high-fidelity execution arm. This depicts robust principal's operational framework for institutional digital asset derivatives, optimizing RFQ protocol processing and market microstructure for best execution](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-microstructure-execution-system.jpg)

## The Role of the Execution Policy

The cornerstone of any best execution documentation strategy is the [Order Execution Policy](https://prime.greeks.live/area/order-execution-policy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). This document is not a static legal disclosure but a dynamic operational blueprint.

- 
**For On-Venue Flow** ▴ The policy must clearly list the execution venues the firm relies on for each class of financial instrument. It must also detail the criteria used to select a venue for any given order, such as cost, speed, and likelihood of execution. The documentation must then show a consistent application of these criteria.

- 
**For SI Flow** ▴ The policy must perform the same function, but with the critical addition of the SI itself as a primary execution venue. It must explain with sufficient detail how the firm ensures that executing against its own book is in the client’s best interest. This section of the policy is subject to intense scrutiny and requires a clear, defensible methodology.

![An opaque principal's operational framework half-sphere interfaces a translucent digital asset derivatives sphere, revealing implied volatility. This symbolizes high-fidelity execution via an RFQ protocol, enabling private quotation within the market microstructure and deep liquidity pool for a robust Crypto Derivatives OS](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-engine-13.jpg)

![Two abstract, polished components, diagonally split, reveal internal translucent blue-green fluid structures. This visually represents the Principal's Operational Framework for Institutional Grade Digital Asset Derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-rfq-execution-prime-os-liquidity-framework.jpg)

## Execution

The execution of a compliant documentation framework requires a meticulous, technology-driven approach. For both Systematic Internalisers and firms utilizing on-venue systems, the process extends far beyond simple record-keeping. It involves the systematic capture, storage, analysis, and reporting of vast quantities of data to meet the stringent requirements of regulations like MiFID II, particularly the [Regulatory Technical Standards](https://prime.greeks.live/area/regulatory-technical-standards/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (RTS) 27 and 28.

> A robust documentation system is the operational spine that supports and validates every execution decision.

![Segmented beige and blue spheres, connected by a central shaft, expose intricate internal mechanisms. This represents institutional RFQ protocol dynamics, emphasizing price discovery, high-fidelity execution, and capital efficiency within digital asset derivatives market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-optimal-execution.jpg)

## Constructing the SI Documentation Protocol

An SI’s documentation protocol is an end-to-end system designed to create a comprehensive and auditable record of its [execution quality](https://prime.greeks.live/area/execution-quality/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). The SI is both the firm and the venue, placing the entire burden of proof on its internal systems.

The operational steps include:

- 
**Pre-Trade Data Capture** ▴ The system must log all client requests for quotes (RFQs) and the quotes provided by the SI. Crucially, it must also capture contemporaneous data from relevant public markets to establish a benchmark for the quote’s fairness.

- 
**Execution Data Logging** ▴ At the moment of execution, the system must record the precise time, price, volume, and client details. This record must be immutable and timestamped with a high degree of granularity.

- 
**Post-Trade Analysis and Reporting ([RTS 27](https://prime.greeks.live/area/rts-27/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite))** ▴ The SI must aggregate this data to produce quarterly RTS 27 reports. These are highly detailed reports on execution quality, broken down by financial instrument. They provide metrics on price, costs, speed, and likelihood of execution. The generation of these reports is a significant technical undertaking, requiring powerful data processing capabilities.

- 
**Client Consent Management** ▴ A system must be in place to obtain and record the prior express consent from clients for their orders to be executed outside of a trading venue. This is a non-negotiable prerequisite.

![A smooth, light-beige spherical module features a prominent black circular aperture with a vibrant blue internal glow. This represents a dedicated institutional grade sensor or intelligence layer for high-fidelity execution](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-intelligence-layer-for-optimal-digital-asset-rfq-execution.jpg)

## The On-Venue Execution File

For a firm executing on external venues, the documentation process is one of aggregation and justification. The firm must build a comprehensive “execution file” for its activities, demonstrating adherence to its Order [Execution Policy](https://prime.greeks.live/area/execution-policy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite).

Key components of this file are:

- 
**Venue Selection Rationale** ▴ For each asset class, the firm must document why the chosen venues are included in its policy. This involves a regular assessment of the venues’ performance based on the best execution factors.

- 
**Order Routing Records** ▴ The firm’s systems must maintain a log of where each client order was routed and the basis for that decision, linking it back to the criteria in the execution policy.

- 
**Monitoring and Review** ▴ The firm must have a documented process for regularly monitoring the effectiveness of its execution arrangements. This involves analyzing execution quality data (often sourced from the venues’ own RTS 27 reports) and making adjustments to the execution policy as needed.

- 
**Top Five Venue Reporting ([RTS 28](https://prime.greeks.live/area/rts-28/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite))** ▴ Annually, the firm must publish a report detailing the top five execution venues it used for each class of financial instrument, in terms of volume, along with a summary of the quality of execution obtained.

![A futuristic system component with a split design and intricate central element, embodying advanced RFQ protocols. This visualizes high-fidelity execution, precise price discovery, and granular market microstructure control for institutional digital asset derivatives, optimizing liquidity provision and minimizing slippage](https://options.greeks.live/wp-content/uploads/2025/07/advanced-rfq-protocols-for-digital-asset-derivatives-price-discovery.jpg)

## Core Data Fields for Best Execution Reporting

The table below highlights some of the critical data points that must be captured to satisfy RTS 27 (for SIs) and inform the analysis for RTS 28 (for all firms).

| Data Category | Specific Data Point Example | Applicability |
| --- | --- | --- |
| Price | Average price, volume-weighted average price, spread against benchmark. | SI (RTS 27), All Firms (RTS 28 Analysis) |
| Costs | Explicit fees, commissions, and any other charges applied to the execution. | SI (RTS 27), All Firms (RTS 28 Analysis) |
| Speed | Time from order receipt to execution, time from quote provision to execution (for RFQ). | SI (RTS 27) |
| Likelihood of Execution | Number of orders/quotes executed versus received. | SI (RTS 27) |
| Instrument Details | ISIN code or other unique identifier for each instrument traded. | SI (RTS 27), All Firms (RTS 28) |

Ultimately, the execution of documentation requirements in the modern regulatory landscape is a data science challenge. It requires a sophisticated technological infrastructure capable of handling large volumes of high-velocity data, performing complex analytics, and generating detailed reports in a precise, machine-readable format. The quality of this infrastructure is a direct determinant of a firm’s ability to prove compliance and maintain its license to operate.

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## References

- Bovill. “Best Execution Under MiFID II.” 2017.

- AFME. “Guide for drafting/review of Execution Policy under MiFID II.” 2017.

- Planet Compliance. “In a nutshell ▴ Best Execution under MiFID II/MiFIR.” 2024.

- ICMA. “MiFID II/R Fixed Income Best Execution Requirements.” 2017.

- ICMA. “MiFID II Best Execution requirements for repo and SFTs ▴ The challenges and (im)practicalities.” 2017.

- European Securities and Markets Authority (ESMA). “Questions and Answers on MiFID II and MiFIR investor protection and intermediaries topics.” ESMA70-872942901-38.

- Financial Conduct Authority (FCA). “Markets in Financial Instruments Directive II Implementation ▴ Policy Statement II.” PS17/14.

- LCH. “MiFID II ▴ An Implementation Guide for LCH Group.” 2017.

- Norton Rose Fulbright. “MiFID II ▴ Best execution.” 2018.

- FIA. “A buyside guide to MiFID2/MiFIR.” 2017.

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## Reflection

![A cutaway view reveals an advanced RFQ protocol engine for institutional digital asset derivatives. Intricate coiled components represent algorithmic liquidity provision and portfolio margin calculations](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-rfq-protocol-engine-digital-asset-derivatives-core-internal-mechanism-visualized.jpg)

## From Obligation to Intelligence

The intricate web of documentation requirements for Systematic Internalisers and on-venue systems presents a significant operational challenge. Yet, viewing this framework solely through the lens of compliance is a strategic limitation. The vast datasets generated to satisfy RTS 27 and RTS 28 are more than just regulatory artifacts; they are a high-fidelity record of a firm’s market interaction. Within these records lies a rich source of intelligence.

A firm that architects its data capture and analysis systems with foresight can transform this mandated process into a powerful feedback loop. The same data used to prove best execution to a regulator can be used to refine execution algorithms, identify patterns in liquidity, and enhance counterparty analysis. The documentation becomes a living archive of performance, a quantitative basis for evolving strategy. The ultimate question for any institution is whether its documentation framework is merely a defensive shield or an active component of its execution intelligence system.

![Internal mechanism with translucent green guide, dark components. Represents Market Microstructure of Institutional Grade Crypto Derivatives OS](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-crypto-derivatives-rfq-engine-for-high-fidelity-execution.jpg)

## Glossary

<a href="https://prime.greeks.live/area/systematic-internaliser/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Clear sphere, precise metallic probe, reflective platform, blue internal light. This symbolizes RFQ protocol for high-fidelity execution of digital asset derivatives, optimizing price discovery within market microstructure, leveraging dark liquidity for atomic settlement and capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-precision-execution-1.jpg)

## Systematic Internaliser

Meaning ▴ A Systematic Internaliser (SI) is a financial institution executing client orders against its own capital on an organized, frequent, systematic basis off-exchange. </a><a href="https://prime.greeks.live/area/on-venue-system/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek pen hovers over a luminous circular structure with teal internal components, symbolizing precise RFQ initiation. This represents high-fidelity execution for institutional digital asset derivatives, optimizing market microstructure and achieving atomic settlement within a Prime RFQ liquidity pool](https://options.greeks.live/wp-content/uploads/2025/07/optimizing-digital-asset-derivatives-rfq-through-prime-os-precision.jpg)

## On-Venue System

Meaning ▴ An On-Venue System designates a trading environment where orders are matched and executed within the structured framework of a regulated exchange or a multilateral trading facility, characterized by centralized order books and established price discovery mechanisms. </a><a href="https://prime.greeks.live/area/documentation-requirements/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![The image depicts two interconnected modular systems, one ivory and one teal, symbolizing robust institutional grade infrastructure for digital asset derivatives. Glowing internal components represent algorithmic trading engines and intelligence layers facilitating RFQ protocols for high-fidelity execution and atomic settlement of multi-leg spreads](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-platform-1.jpg)

## Documentation Requirements

Meaning ▴ Documentation Requirements delineate the formal specifications and detailed records necessary for the design, development, deployment, and ongoing operation of institutional trading systems and protocols within the digital asset derivatives domain. </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 sleek, futuristic institutional grade platform with a translucent teal dome signifies a secure environment for private quotation and high-fidelity execution. A dark, reflective sphere represents an intelligence layer for algorithmic trading and price discovery within market microstructure, ensuring capital efficiency for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/precision-rfq-execution-for-institutional-digital-asset-derivatives-1.jpg)

## 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/documentation-strategy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Modular institutional-grade execution system components reveal luminous green data pathways, symbolizing high-fidelity cross-asset connectivity. This depicts intricate market microstructure facilitating RFQ protocol integration for atomic settlement of digital asset derivatives within a Principal's operational framework, underpinned by a Prime RFQ intelligence layer](https://options.greeks.live/wp-content/uploads/2025/07/modular-high-fidelity-execution-architecture-for-institutional-digital-asset-derivatives-rfq-protocol-integration-and-principals-operational-framework-optimization.jpg)

## Documentation Strategy

Meaning ▴ Documentation Strategy defines a structured, systematic approach to the creation, management, and maintenance of all critical information pertaining to a system, process, or protocol within an institutional environment, particularly as it relates to the complex domain of digital asset derivatives. </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">
![An intricate system visualizes an institutional-grade Crypto Derivatives OS. Its central high-fidelity execution engine, with visible market microstructure and FIX protocol wiring, enables robust RFQ protocols for digital asset derivatives, optimizing capital efficiency via liquidity aggregation](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-price-discovery.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/order-execution-policy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Symmetrical internal components, light green and white, converge at central blue nodes. This abstract representation embodies a Principal's operational framework, enabling high-fidelity execution of institutional digital asset derivatives via advanced RFQ protocols, optimizing market microstructure for price discovery](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-engine-core.jpg)

## Order Execution Policy

Meaning ▴ An Order Execution Policy defines the systematic procedures and criteria governing how an institutional trading desk processes and routes client or proprietary orders across various liquidity venues. </a><a href="https://prime.greeks.live/area/regulatory-technical-standards/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A dual-toned cylindrical component features a central transparent aperture revealing intricate metallic wiring. This signifies a core RFQ processing unit for Digital Asset Derivatives, enabling rapid Price Discovery and High-Fidelity Execution](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-core-best-execution-prime-os.jpg)

## Regulatory Technical Standards

Meaning ▴ Regulatory Technical Standards, or RTS, are legally binding technical specifications developed by European Supervisory Authorities to elaborate on the details of legislative acts within the European Union's financial services framework. </a><a href="https://prime.greeks.live/area/execution-quality/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Precision-engineered components of an institutional-grade system. The metallic teal housing and visible geared mechanism symbolize the core algorithmic execution engine for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-institutional-digital-asset-derivatives-rfq-execution-layer.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/rts-27/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A translucent blue algorithmic execution module intersects beige cylindrical conduits, exposing precision market microstructure components. This institutional-grade system for digital asset derivatives enables high-fidelity execution of block trades and private quotation via an advanced RFQ protocol, ensuring optimal capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-core-execution-architecture-intelligence-layer.jpg)

## Rts 27

Meaning ▴ RTS 27 mandates that investment firms and market operators publish detailed data on the quality of execution of transactions on their venues. </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">
![An intricate, transparent cylindrical system depicts a sophisticated RFQ protocol for digital asset derivatives. Internal glowing elements signify high-fidelity execution and algorithmic trading](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-protocol-architecture.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/rts-28/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Abstract depiction of an advanced institutional trading system, featuring a prominent sensor for real-time price discovery and an intelligence layer. Visible circuitry signifies algorithmic trading capabilities, low-latency execution, and robust FIX protocol integration for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-prime-os-high-fidelity-rfq-protocols.jpg)

## 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>

**Tags:** [Documentation Strategy](https://options.greeks.live/area/documentation-strategy/), [RTS 28](https://options.greeks.live/area/rts-28/), [On-Venue System](https://options.greeks.live/area/on-venue-system/), [Financial Regulation](https://options.greeks.live/area/financial-regulation/), [Documentation Requirements](https://options.greeks.live/area/documentation-requirements/), [Regulatory Technical Standards](https://options.greeks.live/area/regulatory-technical-standards/)	

## Discover More

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### [How Do Best Execution Obligations Differ between Systematic Internalisers and Mtfs?](https://options.greeks.live/question/how-do-best-execution-obligations-differ-between-systematic-internalisers-and-mtfs/)
![A precision-engineered metallic cross-structure, embodying an RFQ engine's market microstructure, showcases diverse elements. One granular arm signifies aggregated liquidity pools and latent liquidity. The opposing perforated arm represents high-fidelity execution and algorithmic trading parameters. Its central pivot symbolizes atomic settlement within institutional digital asset derivatives.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-rfq-engine-microstructure-for-atomic-settlement.jpg)

Systematic Internalisers and MTFs possess distinct best execution duties rooted in their core operational models—bilateral principal versus multilateral agency—shaping strategic liquidity access.

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### [What Are the Key Differences in Documenting RFQ Best Execution under MiFID II versus FINRA Rules?](https://options.greeks.live/question/what-are-the-key-differences-in-documenting-rfq-best-execution-under-mifid-ii-versus-finra-rules/)
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MiFID II demands a quantitative, multi-factor proof of the best outcome, while FINRA requires a documented, diligent process.

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### [How Do MiFID II Reporting Requirements Affect Liquidity Provider Selection for RFQs in Practice?](https://options.greeks.live/question/how-do-mifid-ii-reporting-requirements-affect-liquidity-provider-selection-for-rfqs-in-practice/)
![Two sleek, abstract forms, one dark, one light, are precisely stacked, symbolizing a multi-layered institutional trading system. This embodies sophisticated RFQ protocols, high-fidelity execution, and optimal liquidity aggregation for digital asset derivatives, ensuring robust market microstructure and capital efficiency within a Prime RFQ.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-grade-digital-asset-derivatives-platform-architecture-high-fidelity-execution-protocols-and-liquidity-aggregation.jpg)

MiFID II mandates a data-driven architecture for RFQ liquidity provider selection, prioritizing quantifiable proof of best execution.

- 
### [How Does MiFID II’s Best Execution Policy Impact the Use of Anonymous RFQs?](https://options.greeks.live/question/how-does-mifid-iis-best-execution-policy-impact-the-use-of-anonymous-rfqs/)
![An intricate, high-precision mechanism symbolizes an Institutional Digital Asset Derivatives RFQ protocol. Its sleek off-white casing protects the core market microstructure, while the teal-edged component signifies high-fidelity execution and optimal price discovery. A detailed circular dial suggests real-time implied volatility and quantitative analysis for portfolio margin.](https://options.greeks.live/wp-content/uploads/2025/07/precision-engineered-institutional-digital-asset-derivatives-rfq-protocol-high-fidelity-market-microstructure-optimization.jpg)

MiFID II mandates that anonymous RFQs be integrated into a data-rich, auditable framework, transforming them from discreet tools into fully accountable execution venues.

- 
### [What Are the Key Differences in Proving Best Execution for a Trade on an SI versus an OTF?](https://options.greeks.live/question/what-are-the-key-differences-in-proving-best-execution-for-a-trade-on-an-si-versus-an-otf/)
![A sleek blue surface with droplets represents a high-fidelity Execution Management System for digital asset derivatives, processing market data. A lighter surface denotes the Principal's Prime RFQ. A teal square symbolizes a block trade inquiry, facilitating price discovery and optimal execution via RFQ protocols.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-rfq-execution-for-optimal-price-discovery.jpg)

Proving best execution requires validating a price against the market for an SI, versus justifying a discretionary process for an OTF.

- 
### [How Does MiFID II Differentiate Best Execution for RFQ and CLOB Systems?](https://options.greeks.live/question/how-does-mifid-ii-differentiate-best-execution-for-rfq-and-clob-systems/)
![Two smooth, teal spheres, representing institutional liquidity pools, precisely balance a metallic object, symbolizing a block trade executed via RFQ protocol. This depicts high-fidelity execution, optimizing price discovery and capital efficiency within a Principal's operational framework for digital asset derivatives.](https://options.greeks.live/wp-content/uploads/2025/07/precision-execution-bridging-institutional-liquidity-pools-via-rfq-protocol-for-optimized-digital-asset-derivatives-price-discovery.jpg)

MiFID II mandates a bifurcated best execution analysis, assessing CLOBs on post-trade data against public benchmarks and RFQs on the integrity of the private price discovery process.

- 
### [How Does MiFID II’s Best Execution Policy Alter RFQ Counterparty Selection?](https://options.greeks.live/question/how-does-mifid-iis-best-execution-policy-alter-rfq-counterparty-selection/)
![Highly polished metallic components signify an institutional-grade RFQ engine, the heart of a Prime RFQ for digital asset derivatives. Its precise engineering enables high-fidelity execution, supporting multi-leg spreads, optimizing liquidity aggregation, and minimizing slippage within complex market microstructure.](https://options.greeks.live/wp-content/uploads/2025/07/precision-engineering-underpinning-institutional-digital-asset-derivatives-rfq.jpg)

MiFID II transforms RFQ counterparty selection from a relational art into a systematic, data-driven engineering discipline.

- 
### [What Are the Specific Governance Requirements for Best Execution under MiFID II?](https://options.greeks.live/question/what-are-the-specific-governance-requirements-for-best-execution-under-mifid-ii/)
![A translucent institutional-grade platform reveals its RFQ execution engine with radiating intelligence layer pathways. Central price discovery mechanisms and liquidity pool access points are flanked by pre-trade analytics modules for digital asset derivatives and multi-leg spreads, ensuring high-fidelity execution.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-core-platform.jpg)

MiFID II best execution governance requires firms to build, monitor, and prove a systematic framework for delivering the best possible client results.

- 
### [How Does MiFID II Specifically Define Best Execution for Institutional Clients?](https://options.greeks.live/question/how-does-mifid-ii-specifically-define-best-execution-for-institutional-clients/)
![A prominent domed optic with a teal-blue ring and gold bezel. This visual metaphor represents an institutional digital asset derivatives RFQ interface, providing high-fidelity execution for price discovery within market microstructure. It's a critical Prime RFQ component enabling capital efficiency and atomic settlement.](https://options.greeks.live/wp-content/uploads/2025/07/precision-optic-interface-for-institutional-digital-asset-derivatives-rfq-protocol-execution-and-high-fidelity-price-discovery.jpg)

MiFID II defines best execution as a total-outcome obligation, requiring firms to architect an auditable process to secure the optimal result.

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---

**Original URL:** https://options.greeks.live/question/what-are-the-best-execution-documentation-requirements-when-using-an-si-versus-an-on-venue-system/
