# What Are the Core Data Points Required to Prove Best Execution for Regulators? ▴ Question

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

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![Abstract dual-cone object reflects RFQ Protocol dynamism. It signifies robust Liquidity Aggregation, High-Fidelity Execution, and Principal-to-Principal negotiation](https://options.greeks.live/wp-content/uploads/2025/08/institutional-grade-rfq-execution-framework-for-digital-asset-derivatives-optimal-liquidity-aggregation-and-atomic-settlement.jpg)

![Intersecting translucent planes and a central financial instrument depict RFQ protocol negotiation for block trade execution. Glowing rings emphasize price discovery and liquidity aggregation within market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-orchestration-for-high-fidelity-execution-across-prime-os.jpg)

## Concept

The mandate to prove [best execution](https://prime.greeks.live/area/best-execution/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) is a direct inquiry into the structural integrity of a firm’s trading apparatus. Regulators are not merely asking for a summary of outcomes; they are requiring a complete, data-driven attestation of the decision-making process itself. This is an audit of the system’s logic, its inputs, and its procedural fidelity.

The core task is to construct a verifiable narrative, supported by granular data, that demonstrates how a firm consistently delivers the optimal result for a client within the prevailing market context. This proof rests on a foundation of quantifiable evidence, meticulously logged at every stage of the order lifecycle.

From a systems architecture perspective, achieving and proving best execution is a problem of data capture, storage, and analysis. It requires building a framework where every client order is treated as a discrete event to be managed and monitored against a defined set of [execution factors](https://prime.greeks.live/area/execution-factors/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). These factors extend far beyond the [execution price](https://prime.greeks.live/area/execution-price/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). They encompass the total cost of the transaction, the speed of execution, the likelihood of completion, and the size and nature of the order itself.

The challenge lies in creating a system that can weigh these often-competing factors in real-time and select the path that yields the most favorable result for the client. The resulting data logs become the definitive record, the raw material from which proof is constructed.

> A firm’s ability to prove best execution is a direct reflection of its operational discipline and the sophistication of its data infrastructure.

The regulatory expectation is that firms can systematically reconstruct their execution choices. This means providing a clear audit trail that shows not just the venue chosen but also the venues considered and rejected. It requires a documented rationale for the routing decision, grounded in the firm’s established best [execution policy](https://prime.greeks.live/area/execution-policy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). For institutional finance, particularly in complex markets like OTC derivatives or large block trades, this becomes a highly sophisticated undertaking.

The system must account for the unique characteristics of illiquid instruments and the nuanced, often bilateral, nature of price discovery. The data points required are therefore extensive, forming a complete picture of the [market conditions](https://prime.greeks.live/area/market-conditions/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) at the moment of execution and the firm’s strategic response to those conditions.

![A precision-engineered, multi-layered system architecture for institutional digital asset derivatives. Its modular components signify robust RFQ protocol integration, facilitating efficient price discovery and high-fidelity execution for complex multi-leg spreads, minimizing slippage and adverse selection in market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-institutional-digital-asset-derivatives-rfq-execution-platform.jpg)

![A sleek blue and white mechanism with a focused lens symbolizes Pre-Trade Analytics for Digital Asset Derivatives. A glowing turquoise sphere represents a Block Trade within a Liquidity Pool, demonstrating High-Fidelity Execution via RFQ protocol for Price Discovery in Dark Pool Market Microstructure](https://options.greeks.live/wp-content/uploads/2025/07/advanced-institutional-digital-asset-derivatives-rfq-execution-system-for-optimal-price-discovery-and-high-fidelity-execution.jpg)

## Strategy

A robust strategy for proving best execution is built on two pillars ▴ a comprehensive execution policy and a rigorous monitoring framework. The policy serves as the firm’s constitution, defining the principles and procedures that govern all trading activities. The monitoring framework provides the mechanism for ensuring adherence to that constitution and for demonstrating its effectiveness to regulators. This dual approach transforms the abstract requirement of “best execution” into a concrete, auditable operational process.

![Abstract RFQ engine, transparent blades symbolize multi-leg spread execution and high-fidelity price discovery. The central hub aggregates deep liquidity pools](https://options.greeks.live/wp-content/uploads/2025/07/principal-rfq-engine-for-crypto-derivatives-high-fidelity-block-trade.jpg)

## Developing the Execution Policy

The execution policy is the foundational document. It must articulate, with precision, how the firm defines and prioritizes the various execution factors. While price is a primary consideration, the policy must detail how it is balanced against other critical variables.

For instance, for a large, illiquid order, the likelihood of execution and minimizing market impact may take precedence over achieving a marginal [price improvement](https://prime.greeks.live/area/price-improvement/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) that could risk information leakage. The policy must be tailored to the specific types of clients served, the financial instruments traded, and the execution venues accessed.

A key strategic element is the classification of clients, typically as retail or professional. This distinction is important because the relative importance of the execution factors may differ between these groups. A retail client, for example, may be best served by a focus on the all-in price and speed, whereas a professional client executing a complex multi-leg options strategy may prioritize the certainty of execution and the minimization of slippage across all legs of the trade. The policy must document these distinctions and the logic that flows from them.

> The strategic objective is to create a living system that not only executes orders optimally but also generates the evidence of that optimization as a natural byproduct of its operation.

![A polished metallic needle, crowned with a faceted blue gem, precisely inserted into the central spindle of a reflective digital storage platter. This visually represents the high-fidelity execution of institutional digital asset derivatives via RFQ protocols, enabling atomic settlement and liquidity aggregation through a sophisticated Prime RFQ intelligence layer for optimal price discovery and alpha generation](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-optimization-for-high-fidelity-execution-and-liquidity-aggregation-via-prime-os-intelligence-layer.jpg)

## The Monitoring and Review Framework

What is the most effective way to validate [execution quality](https://prime.greeks.live/area/execution-quality/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite)? The answer lies in continuous, data-driven monitoring. Firms must establish a systematic process to regularly review the quality of execution they are achieving.

This involves more than just a cursory check; it requires a deep analysis of execution data against relevant benchmarks. The strategy here is to move from a reactive, audit-driven posture to a proactive, self-assessment model.

This monitoring should be conducted on a regular basis, at least quarterly, and should compare the firm’s execution quality against what might have been achieved on other available markets or venues. This comparative analysis is at the heart of proving best execution. It requires the firm to capture not just the details of the executed trade, but also a snapshot of the available liquidity and pricing on alternative venues at the time of the order. This process, often called [Transaction Cost Analysis](https://prime.greeks.live/area/transaction-cost-analysis/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (TCA), is a cornerstone of a modern best execution strategy.

![A dark, precision-engineered module with raised circular elements integrates with a smooth beige housing. It signifies high-fidelity execution for institutional RFQ protocols, ensuring robust price discovery and capital efficiency in digital asset derivatives market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-rfq-system-core-high-speed-price-discovery-module.jpg)

## Key Execution Factors and Their Strategic Implications

The following table outlines the primary execution factors and the strategic considerations for incorporating them into a firm’s policy and monitoring framework.

| Execution Factor | Strategic Consideration | Data Capture Requirement |
| --- | --- | --- |
| Price | The primary goal is to achieve the most favorable price under the prevailing market conditions. This involves assessing prices from multiple venues. | Timestamped quotes from all considered venues; final execution price. |
| Costs | All costs associated with the execution must be considered, including explicit fees (commissions, exchange fees) and implicit costs (market impact, slippage). | Fee schedules for all venues; pre-trade vs. post-trade price analysis. |
| Speed | The latency of execution can be a critical factor, particularly in volatile markets. The strategy must balance the need for speed with the depth of price discovery. | Timestamps for order receipt, routing, and execution confirmation. |
| Likelihood of Execution | For certain orders, especially large or illiquid ones, the certainty of execution is paramount. This involves assessing the depth of liquidity on different venues. | Venue fill rates; historical execution data for similar orders. |
| Size and Nature of the Order | The strategy for a small, liquid order will differ significantly from that for a large block trade. The policy must account for this, potentially specifying different routing logic for different order types. | Order size, instrument type, and any specific client instructions. |

![A glowing green ring encircles a dark, reflective sphere, symbolizing a principal's intelligence layer for high-fidelity RFQ execution. It reflects intricate market microstructure, signifying precise algorithmic trading for institutional digital asset derivatives, optimizing price discovery and managing latent liquidity](https://options.greeks.live/wp-content/uploads/2025/07/core-institutional-digital-asset-derivatives-rfq-execution-system-hub.jpg)

![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)

## Execution

The execution phase is where the strategic framework is translated into a tangible, data-centric operation. This requires a sophisticated technological architecture capable of capturing, storing, and analyzing a vast amount of granular data in near real-time. Proving best execution to regulators is a matter of presenting this data in a clear, logical, and comprehensive manner that leaves no doubt as to the integrity of the firm’s processes.

![The image depicts two intersecting structural beams, symbolizing a robust Prime RFQ framework for institutional digital asset derivatives. These elements represent interconnected liquidity pools and execution pathways, crucial for high-fidelity execution and atomic settlement within market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-cross-market-execution-architecture-for-digital-assets.jpg)

## The Data Capture Architecture

How does a firm build a defensible data record? The foundation is a system that logs every critical event in an order’s lifecycle. This system must be deeply integrated with the firm’s Order Management System (OMS) and Execution Management System (EMS). The goal is to create an immutable audit trail for every single order.

The core data points that must be captured can be categorized into several domains:

- **Order Characteristics** ▴ This includes all details of the client’s order at the moment of receipt. Key data points are the client identifier, whether the client is retail or professional, the instrument identifier (e.g. ISIN), the order type (market, limit, etc.), the quantity, and the exact timestamp of receipt.

- **Market State at Time of Order** ▴ The system must capture a snapshot of the market at the time the order is received and during the execution process. This includes the National Best Bid and Offer (NBBO) or equivalent best-price benchmark, as well as the prices and depths available on all relevant execution venues the firm has access to. This is the comparative data against which the final execution will be judged.

- **Execution Details** ▴ This covers the specifics of how the order was handled and executed. It includes the timestamp of when the order was routed to a venue, the venue’s identity, the execution price, the executed quantity, any fees or commissions charged, and the timestamp of the execution confirmation.

- **Post-Trade Analysis** ▴ After execution, further data must be generated through analysis. This includes calculating price improvement against the benchmark (e.g. NBBO), measuring execution latency, and calculating any slippage between the expected and actual execution price.

![A spherical Liquidity Pool is bisected by a metallic diagonal bar, symbolizing an RFQ Protocol and its Market Microstructure. Imperfections on the bar represent Slippage challenges in High-Fidelity Execution](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-optimization-within-principals-market-microstructure-framework.jpg)

## Core Data Points for Regulatory Proof

The following table provides a granular view of the essential data points required to construct a comprehensive best execution report for a regulator. This is the raw material for the proof.

| Data Category | Specific Data Point | Purpose in Proving Best Execution |
| --- | --- | --- |
| Client and Order | Unique Client ID | Links execution back to a specific client and their classification (retail/professional). |
| | Order Arrival Timestamp | Establishes the precise moment the obligation begins and the market conditions to be used as a benchmark. |
| | Instrument Identifier (ISIN/CUSIP) | Identifies the exact financial instrument being traded. |
| | Order Size & Type | Provides context for the execution strategy (e.g. block trade vs. small order). |
| Pre-Trade Market Conditions | Benchmark Price (e.g. NBBO) | The primary reference price against which execution quality is measured. |
| | Quotes from Considered Venues | Demonstrates that the firm surveyed the available market to find the best price. |
| | Depth of Book on Venues | Justifies venue selection based on likelihood of execution for a given order size. |
| Execution & Routing | Venue of Execution | Identifies where the trade was ultimately executed. |
| | Execution Timestamp | Allows for calculation of execution speed and latency. |
| | Execution Price & Quantity | The actual outcome of the trade. |
| | Routing Decision Logic | A record or flag indicating why a particular venue was chosen (e.g. best price, best size, low latency). |
| Post-Trade Analytics | Price Improvement Amount | Quantifies the value delivered to the client versus the prevailing market benchmark. |
| | Slippage Calculation | Measures the difference between the expected price at the time of order routing and the final execution price. |
| | Total Execution Cost | Aggregates all explicit costs (fees, commissions) to show the all-in result for the client. |

![A central RFQ aggregation engine radiates segments, symbolizing distinct liquidity pools and market makers. This depicts multi-dealer RFQ protocol orchestration for high-fidelity price discovery in digital asset derivatives, highlighting diverse counterparty risk profiles and algorithmic pricing grids](https://options.greeks.live/wp-content/uploads/2025/07/centralized-digital-asset-rfq-orchestration-for-multi-venue-liquidity-aggregation-and-high-fidelity-execution-across-diverse-counterparties.jpg)

## Procedural Checklist for Best Execution Compliance

To ensure these data points are consistently captured and policies are followed, firms should implement a clear procedural checklist. This operationalizes the entire best execution framework.

- **Policy Establishment and Annual Review** ▴ Does the firm have a detailed, up-to-date best execution policy? Has it been reviewed and approved by senior management within the last 12 months? The policy must clearly define the relative importance of execution factors for different client and instrument types.

- **Venue Analysis** ▴ Has the firm conducted a thorough analysis of all potential execution venues? This analysis should be documented and should cover factors like fees, speed, and liquidity characteristics. There must be a clear rationale for the selection of venues included in the firm’s routing logic.

- **Systematic [Data Capture](https://prime.greeks.live/area/data-capture/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite)** ▴ Are all the core data points listed in the table above being captured automatically for every order? The process must be systematic, reducing the chance of human error or omission.

- **Quarterly Monitoring and Reporting** ▴ Is the firm conducting regular, formal reviews of its execution quality? These reviews should generate internal reports that compare performance against benchmarks and identify any outliers or areas for improvement.

- **Documentation and Record-Keeping** ▴ Are all policies, reviews, and data readily accessible? Firms must be able to produce these records promptly upon a regulator’s request. Records should be maintained for a period specified by the relevant jurisdiction (e.g. five years under [MiFID II](https://prime.greeks.live/area/mifid-ii/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite)).

Ultimately, proving best execution is an exercise in demonstrating robust, repeatable, and data-driven processes. It requires a significant investment in technology and a culture of compliance that permeates the entire trading operation. The firm that can produce a complete, granular, and logical data narrative for every trade is the firm that will satisfy its regulatory obligations.

![Intricate dark circular component with precise white patterns, central to a beige and metallic system. This symbolizes an institutional digital asset derivatives platform's core, representing high-fidelity execution, automated RFQ protocols, advanced market microstructure, the intelligence layer for price discovery, block trade efficiency, and portfolio margin](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-core.jpg)

## References

- Goodwin Procter. “SEC Proposes New Regulation Best Execution ▴ Brokers Must Achieve “Most Favorable Price” for Customers; Heightened Obligations for Conflicted Retail Transactions.” Goodwin Procter, 2023.

- TRAction Fintech. “Best Execution Best Practices.” TRAction, 2023.

- Novatus Global. “Best Execution ▴ MiFID II & SEC Compliance Essentials Explained.” Novatus, 2020.

- European Securities and Markets Authority. “Best Execution.” ESMA, 2007.

- Cappitech. “FCA and CySEC expanding MiFID II monitoring to Best Execution and RTS 27/28 requirements.” Cappitech, 2019.

- Foucault, Thierry, et al. Market Liquidity ▴ Theory, Evidence, and Policy. Oxford University Press, 2013.

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

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

![Close-up of intricate mechanical components symbolizing a robust Prime RFQ for institutional digital asset derivatives. These precision parts reflect market microstructure and high-fidelity execution within an RFQ protocol framework, ensuring capital efficiency and optimal price discovery for Bitcoin options](https://options.greeks.live/wp-content/uploads/2025/07/engineered-core-systems-driving-institutional-digital-asset-derivatives-rfq-protocol-execution.jpg)

## Reflection

![A central dark aperture, like a precision matching engine, anchors four intersecting algorithmic pathways. Light-toned planes represent transparent liquidity pools, contrasting with dark teal sections signifying dark pool or latent liquidity](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-engine-9.jpg)

## Calibrating the Evidentiary Engine

The assembly of these data points constitutes the construction of an evidentiary engine. The true measure of this system is its ability to produce a coherent and defensible narrative under scrutiny. Reflect on your own operational framework. Does it treat data capture as a compliance task, or as a core component of its execution logic?

The data points are the vocabulary, but the policy and its consistent application form the grammar. A complete record is the foundation upon which the argument of diligence and fidelity to client interest is built. The ultimate objective is an architecture where the proof of best execution is an inherent property of the system itself, generated with every single trade as a testament to its integrity.

![A pristine teal sphere, representing a high-fidelity digital asset, emerges from concentric layers of a sophisticated principal's operational framework. These layers symbolize market microstructure, aggregated liquidity pools, and RFQ protocol mechanisms ensuring best execution and optimal price discovery within an institutional-grade crypto derivatives OS](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-engine-core-2.jpg)

## Glossary

<a href="https://prime.greeks.live/area/best-execution/?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)

## 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/execution-factors/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sophisticated, multi-component system propels a sleek, teal-colored digital asset derivative trade. The complex internal structure represents a proprietary RFQ protocol engine with liquidity aggregation and price discovery mechanisms](https://options.greeks.live/wp-content/uploads/2025/07/principals-high-fidelity-rfq-engine-for-digital-asset-derivatives-execution.jpg)

## Execution Factors

Meaning ▴ Execution Factors are the quantifiable, dynamic variables that directly influence the outcome and quality of a trade execution within institutional digital asset markets. </a><a href="https://prime.greeks.live/area/execution-price/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A luminous digital asset core, symbolizing price discovery, rests on a dark liquidity pool. Surrounding metallic infrastructure signifies Prime RFQ and high-fidelity execution](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-core-high-fidelity-execution-engine-for-principal-trading.jpg)

## Execution Price

Meaning ▴ The Execution Price represents the definitive, realized price at which a specific order or trade leg is completed within a financial market system. </a><a href="https://prime.greeks.live/area/execution-policy/?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)

## 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-conditions/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A central glowing blue mechanism with a precision reticle is encased by dark metallic panels. This symbolizes an institutional-grade Principal's operational framework for high-fidelity execution of digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/precision-core-enabling-institutional-digital-asset-derivatives-rfq-execution.jpg)

## Market Conditions

Meaning ▴ Market Conditions denote the aggregate state of variables influencing trading dynamics within a given asset class, encompassing quantifiable metrics such as prevailing liquidity levels, volatility profiles, order book depth, bid-ask spreads, and the directional pressure of order flow. </a><a href="https://prime.greeks.live/area/price-improvement/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Two precision-engineered nodes, possibly representing a Private Quotation or RFQ mechanism, connect via a transparent conduit against a striped Market Microstructure backdrop. This visualizes High-Fidelity Execution pathways for Institutional Grade Digital Asset Derivatives, enabling Atomic Settlement and Capital Efficiency within a Dark Pool environment, optimizing Price Discovery](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-system-nodes.jpg)

## Price Improvement

Meaning ▴ Price improvement denotes the execution of a trade at a more advantageous price than the prevailing National Best Bid and Offer (NBBO) at the moment of order submission. </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">
![A sharp, teal-tipped component, emblematic of high-fidelity execution and alpha generation, emerges from a robust, textured base representing the Principal's operational framework. Water droplets on the dark blue surface suggest a liquidity pool within a dark pool, highlighting latent liquidity and atomic settlement via RFQ protocols for institutional digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-execution-protocol-for-institutional-digital-asset-options.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/transaction-cost-analysis/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A complex sphere, split blue implied volatility surface and white, balances on a beam. A transparent sphere acts as fulcrum](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-balancing-liquidity.jpg)

## Transaction Cost Analysis

Meaning ▴ Transaction Cost Analysis (TCA) is the quantitative methodology for assessing the explicit and implicit costs incurred during the execution of financial trades. </a><a href="https://prime.greeks.live/area/data-capture/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A multi-layered, circular device with a central concentric lens. It symbolizes an RFQ engine for precision price discovery and high-fidelity execution](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-engine-for-precision-execution.jpg)

## Data Capture

Meaning ▴ Data Capture refers to the precise, systematic acquisition and ingestion of raw, real-time information streams from various market sources into a structured data repository. </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">
![A crystalline sphere, symbolizing atomic settlement for digital asset derivatives, rests on a Prime RFQ platform. Intersecting blue structures depict high-fidelity RFQ execution and multi-leg spread strategies, showcasing optimized market microstructure for capital efficiency and latent liquidity](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-microstructure-8.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>

**Tags:** [Price Improvement](https://options.greeks.live/area/price-improvement/), [Execution Price](https://options.greeks.live/area/execution-price/), [Regulatory Reporting](https://options.greeks.live/area/regulatory-reporting/), [Data Capture](https://options.greeks.live/area/data-capture/), [FINRA Rule 5310](https://options.greeks.live/area/finra-rule-5310/), [MiFID II](https://options.greeks.live/area/mifid-ii/)	

## Discover More

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### [What Are the Core Differences between MiFID II and FINRA Best Execution Requirements?](https://options.greeks.live/question/what-are-the-core-differences-between-mifid-ii-and-finra-best-execution-requirements/)
![Abstract RFQ engine, transparent blades symbolize multi-leg spread execution and high-fidelity price discovery. The central hub aggregates deep liquidity pools. Red glows indicate real-time market microstructure dynamics and optimal capital efficiency for institutional digital asset derivatives block trades.](https://options.greeks.live/wp-content/uploads/2025/07/principal-rfq-engine-for-crypto-derivatives-high-fidelity-block-trade.jpg)

MiFID II mandates a prescriptive, data-heavy "all sufficient steps" approach, while FINRA requires a principles-based "reasonable diligence."

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![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)

A global best execution policy's core challenge is architecting a unified governance system to master fragmented global markets.

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### [What Are the Key Differences between Best Execution Obligations in the EU and the US?](https://options.greeks.live/question/what-are-the-key-differences-between-best-execution-obligations-in-the-eu-and-the-us/)
![Abstract system interface on a global data sphere, illustrating a sophisticated RFQ protocol for institutional digital asset derivatives. The glowing circuits represent market microstructure and high-fidelity execution within a Prime RFQ intelligence layer, facilitating price discovery and capital efficiency across liquidity pools.](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-protocol-execution-prime-os.jpg)

EU's MiFID II mandates a prescriptive, data-heavy process, while the US's FINRA rules require a principles-based "reasonable diligence."

- 
### [How Do Regulatory Frameworks like MiFID II and FINRA Rule 5310 Define Best Execution?](https://options.greeks.live/question/how-do-regulatory-frameworks-like-mifid-ii-and-finra-rule-5310-define-best-execution/)
![A multi-faceted algorithmic execution engine, reflective with teal components, navigates a cratered market microstructure. It embodies a Principal's operational framework for high-fidelity execution of digital asset derivatives, optimizing capital efficiency, best execution via RFQ protocols in a Prime RFQ.](https://options.greeks.live/wp-content/uploads/2025/07/advanced-rfq-protocol-engine-for-institutional-digital-asset-derivatives.jpg)

MiFID II and FINRA Rule 5310 define best execution as a data-driven, systematic process to achieve the most favorable client outcome.

- 
### [How Can a Firm Quantitatively Demonstrate the Effectiveness of Its RFQ Best Execution Policy?](https://options.greeks.live/question/how-can-a-firm-quantitatively-demonstrate-the-effectiveness-of-its-rfq-best-execution-policy/)
![Angular metallic structures precisely intersect translucent teal planes against a dark backdrop. This embodies an institutional-grade Digital Asset Derivatives platform's market microstructure, signifying high-fidelity execution via RFQ protocols. It demonstrates liquidity aggregation, algorithmic price discovery, portfolio margin capabilities, and systemic risk mitigation within a Prime Brokerage OS.](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-derivatives-rfq-high-fidelity-execution-system-architecture.jpg)

A firm proves its RFQ policy's value via a data architecture that systematically analyzes execution price against multiple benchmarks.

- 
### [What Are the Primary Regulatory Obligations for Best Execution in Different Asset Classes?](https://options.greeks.live/question/what-are-the-primary-regulatory-obligations-for-best-execution-in-different-asset-classes/)
![Abstract geometric structure with sharp angles and translucent planes, symbolizing institutional digital asset derivatives market microstructure. The central point signifies a core RFQ protocol engine, enabling precise price discovery and liquidity aggregation for multi-leg options strategies, crucial for high-fidelity execution and capital efficiency.](https://options.greeks.live/wp-content/uploads/2025/07/principals-operational-framework-optimizing-institutional-digital-asset-derivatives-rfq-protocol-execution-for-alpha-generation.jpg)

Best execution is the mandated, systematic pursuit of optimal trade outcomes through a verifiable and adaptive operational framework.

- 
### [What Are the Primary Regulatory Considerations When Designing an Rfq Best Execution Policy?](https://options.greeks.live/question/what-are-the-primary-regulatory-considerations-when-designing-an-rfq-best-execution-policy/)
![A precision metallic mechanism with radiating blades and blue accents, representing an institutional-grade Prime RFQ for digital asset derivatives. It signifies high-fidelity execution via RFQ protocols, leveraging dark liquidity and smart order routing within market microstructure.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-engine.jpg)

A firm's RFQ best execution policy is the auditable protocol for systematically delivering superior client outcomes.

- 
### [How Do Regulatory Bodies like the Sec and Fca Define Best Execution?](https://options.greeks.live/question/how-do-regulatory-bodies-like-the-sec-and-fca-define-best-execution/)
![A multi-layered, sectioned sphere reveals core institutional digital asset derivatives architecture. Translucent layers depict dynamic RFQ liquidity pools and multi-leg spread execution. The opaque half signifies robust institutional-grade infrastructure. A central core embodies the Prime RFQ intelligence layer, enabling high-fidelity execution, atomic settlement, and optimal price discovery.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-market-microstructure-1.jpg)

The SEC and FCA define best execution as a dynamic, evidence-based duty to secure the most favorable client outcomes through rigorous process and analysis.

- 
### [What Is the Role of a Best Execution Committee in a Firm’s Governance?](https://options.greeks.live/question/what-is-the-role-of-a-best-execution-committee-in-a-firms-governance/)
![A teal and white sphere precariously balanced on a light grey bar, itself resting on an angular base, depicts market microstructure at a critical price discovery point. This visualizes high-fidelity execution of digital asset derivatives via RFQ protocols, emphasizing capital efficiency and risk aggregation within a Principal trading desk's operational framework.](https://options.greeks.live/wp-content/uploads/2025/07/precision-institutional-digital-asset-derivatives-rfq-execution-strategy.jpg)

The Best Execution Committee is the governance engine that systematically translates policy into quantifiable, superior trading outcomes.

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---

**Original URL:** https://options.greeks.live/question/what-are-the-core-data-points-required-to-prove-best-execution-for-regulators/
