# What Are the Key Compliance Considerations When Implementing an Electronic Rfq Workflow under Mifid Ii? ▴ Question

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

---

![A sleek, multi-segmented sphere embodies a Principal's operational framework for institutional digital asset derivatives. Its transparent 'intelligence layer' signifies high-fidelity execution and price discovery via RFQ protocols](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-rfq-protocol-digital-asset-derivatives-execution-engine.jpg)

![A sophisticated mechanism depicting the high-fidelity execution of institutional digital asset derivatives. It visualizes RFQ protocol efficiency, real-time liquidity aggregation, and atomic settlement within a prime brokerage framework, optimizing market microstructure for multi-leg spreads](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-rfq-protocol-execution-liquidity-aggregation-system.jpg)

## Concept

The implementation of an electronic Request for Quote workflow is an exercise in architectural precision. It involves constructing a system that reconciles two powerful, seemingly divergent forces within the market’s structure. On one hand, there is the operational necessity for sourcing block liquidity with discretion and minimal market impact. On the other, there is the regulatory mandate of the Markets in [Financial Instruments Directive](https://prime.greeks.live/question/how-can-firms-quantitatively-demonstrate-best-execution-for-rfq-trades-under-the-directive/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) II for radical transparency and demonstrable fairness in the execution process.

Viewing this as a compliance burden is a fundamental misreading of the environment. The task is to engineer a private communication channel that operates within a public accountability framework.

Success in this endeavor is measured by the system’s ability to produce auditable, high-fidelity data as a natural byproduct of its execution function. Every stage of the bilateral price discovery protocol, from [counterparty selection](https://prime.greeks.live/area/counterparty-selection/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) to the final fill, must be logged with immutable, high-granularity timestamps and context. This data is the system’s core truth. It serves the dual purpose of satisfying regulatory inquiry while simultaneously providing the quantitative feedback loop required for refining execution strategy.

A correctly architected RFQ system transforms the regulatory obligations of MiFID II from a set of external constraints into an integrated set of features that enhance operational control and provide a strategic edge. The objective is to build a workflow where compliance is indistinguishable from optimal performance.

![A precision-engineered, multi-layered mechanism symbolizing a robust RFQ protocol engine for institutional digital asset derivatives. Its components represent aggregated liquidity, atomic settlement, and high-fidelity execution within a sophisticated market microstructure, enabling efficient price discovery and optimal capital efficiency for block trades](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-protocol-engine.jpg)

![Precision-engineered modular components, with transparent elements and metallic conduits, depict a robust RFQ Protocol engine. This architecture facilitates high-fidelity execution for institutional digital asset derivatives, enabling efficient liquidity aggregation and atomic settlement within market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-engine-optimizing-high-fidelity-execution-and-liquidity-aggregation.jpg)

## Strategy

Developing a compliant electronic [RFQ workflow](https://prime.greeks.live/area/rfq-workflow/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) under MiFID II is a significant strategic undertaking. It requires a series of deliberate architectural decisions that define how a firm interacts with the market, manages its obligations, and ultimately, proves the value of its execution outcomes to both clients and regulators. The primary strategic decision revolves around the firm’s own market posture, specifically whether to operate as a [Systematic Internaliser](https://prime.greeks.live/area/systematic-internaliser/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (SI).

![A metallic, reflective disc, symbolizing a digital asset derivative or tokenized contract, rests on an intricate Principal's operational framework. This visualizes the market microstructure for high-fidelity execution of institutional digital assets, emphasizing RFQ protocol precision, atomic settlement, and capital efficiency](https://options.greeks.live/wp-content/uploads/2025/08/high-fidelity-digital-asset-derivatives-rfq-protocol-system-infrastructure.jpg)

## Systematic Internaliser Designation a Strategic Crossroads

The SI regime is a central pillar of MiFID II’s market structure. An SI is an investment firm which, on an organised, frequent, systematic and substantial basis, deals on its own account when executing client orders outside a regulated market, an MTF or an OTF. The decision to become an SI for a particular asset class is data-driven, based on quantitative thresholds, but it carries immense strategic weight for an RFQ workflow. Operating as an SI provides a clear framework for principal trading and responding to client RFQs, but it comes with substantial responsibilities, most notably in [pre-trade transparency](https://prime.greeks.live/area/pre-trade-transparency/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) and post-trade reporting.

> A firm’s decision to operate as a Systematic Internaliser fundamentally shapes its RFQ strategy and technological build-out.

The table below outlines the strategic trade-offs inherent in the SI designation. It juxtaposes the operational advantages against the compliance and technological overhead, providing a clear decision-making matrix for an institution.

### Table 1 ▴ Strategic Implications of Systematic Internaliser (SI) Designation

| Factor | Operating as an SI | Operating as a Non-SI |
| --- | --- | --- |
| Pre-Trade Transparency | Obligation to publish firm quotes for liquid instruments up to a standard market size. This provides clarity to clients but exposes trading intent. | No obligation to provide public pre-trade quotes. Engages with SIs or other liquidity providers. |
| Execution Control | Direct control over the execution price for client RFQs. Allows for internalization of flow. | Acts as an agent, sourcing liquidity from multiple counterparties. Control is exercised through the selection of LPs. |
| Reporting Obligation | Responsible for post-trade reporting to an Approved Publication Arrangement (APA) when dealing with non-SIs. | The SI counterparty is typically responsible for trade reporting, reducing the firm’s operational burden. |
| Technological Build | Requires robust infrastructure for quote dissemination, monitoring of SI thresholds, and direct APA connectivity. | Requires sophisticated EMS/OMS to manage multi-dealer RFQs and aggregate responses for best execution analysis. |
| Best Execution | Demonstrated by providing prices at or better than the prevailing market conditions, which must be rigorously documented. | Demonstrated by polling a sufficient number of competitive venues/LPs and documenting the selection process. |

![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)

## How Does Data Architecture Support Best Execution?

Under MiFID II, [best execution](https://prime.greeks.live/area/best-execution/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) is an explicit obligation that must be proven with data. For an RFQ workflow, this means capturing not just the winning quote, but all quotes received. The strategy here is to design a data architecture that substantiates every [execution decision](https://prime.greeks.live/guide/why-your-execution-method-is-your-most-important-strategic-decision/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). This involves more than simple record-keeping; it requires a system capable of reconstructing the entire RFQ event for subsequent analysis.

The system must log the following for every RFQ:

- **Counterparties Polled** ▴ A record of every liquidity provider to whom the RFQ was sent, along with a justification for their selection based on the firm’s execution policy.

- **All Quotes Received** ▴ The price and size of every response, including those that were rejected. This is critical for demonstrating that the chosen quote was the most favorable.

- **Response Timestamps** ▴ High-granularity timestamps for when the RFQ was sent and when each response was received. This data helps evaluate the performance of liquidity providers.

- **Execution Justification** ▴ A codified reason for the execution decision, especially if the best-priced quote was not selected. Factors like counterparty risk or likelihood of settlement can be valid considerations, but they must be documented.

This data-centric strategy transforms the best execution process from a qualitative policy into a quantitative, defensible framework. It allows the firm to generate the detailed [RTS 28](https://prime.greeks.live/area/rts-28/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) reports required by the regulation and provides the compliance function with the necessary evidence to respond to any regulatory inquiries.

![Brushed metallic and colored modular components represent an institutional-grade Prime RFQ facilitating RFQ protocols for digital asset derivatives. The precise engineering signifies high-fidelity execution, atomic settlement, and capital efficiency within a sophisticated market microstructure for multi-leg spread trading](https://options.greeks.live/wp-content/uploads/2025/08/institutional-grade-digital-asset-derivatives-rfq-protocol-high-fidelity-execution-system.jpg)

![Abstract geometric forms in blue and beige represent institutional liquidity pools and market segments. A metallic rod signifies RFQ protocol connectivity for atomic settlement of digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-market-microstructure-1.jpg)

## Execution

The execution of a MiFID II-compliant RFQ workflow is a matter of precise operational engineering. It requires the seamless integration of trading protocols, data capture mechanisms, and reporting systems. The entire lifecycle of the quote request must be viewed as a single, auditable event chain, where each step generates immutable evidence of the firm’s adherence to its regulatory obligations.

![A multi-faceted crystalline structure, featuring sharp angles and translucent blue and clear elements, rests on a metallic base. This embodies Institutional Digital Asset Derivatives and precise RFQ protocols, enabling High-Fidelity Execution](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-digital-asset-derivatives-rfq-market-microstructure.jpg)

## The Operational Playbook an RFQ Lifecycle

A compliant RFQ workflow can be broken down into a sequence of mandatory operational steps. Each step corresponds to specific articles within MiFID II and its associated Regulatory Technical Standards (RTS), ensuring that the process is systematically compliant from initiation to settlement.

- **Pre-Trade Eligibility Assessment** ▴ Before initiating an RFQ, the system must determine if the instrument and trade size qualify for a [pre-trade transparency waiver](https://prime.greeks.live/area/pre-trade-transparency-waiver/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (e.g. [Large-in-Scale](https://prime.greeks.live/area/large-in-scale/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) or LIS). This check must be automated and logged, as it provides the legal basis for conducting the trade off-book.

- **Counterparty Selection and Justification** ▴ The trader selects a list of counterparties to receive the RFQ. The execution system must record this selection and link it to the firm’s [Best Execution Policy](https://prime.greeks.live/area/best-execution-policy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), which should define the criteria for counterparty inclusion (e.g. historical response rates, pricing competitiveness, settlement efficiency).

- **Secure Quote Solicitation** ▴ The RFQ is transmitted to the selected counterparties, typically via a dedicated application or FIX messaging. The system must record the precise content of the request and the exact time it was sent to each counterparty, synchronized to a central business clock.

- **Response Capture and Evaluation** ▴ All responses must be captured electronically. This includes price, quantity, and the timestamp of receipt. The system should present these responses to the trader in a consolidated view that facilitates a comparative analysis.

- **Execution Decision and Documentation** ▴ The trader executes against the chosen quote. The system must log the decision and the justification. If the executed price was not the best price received, a specific justification code (e.g. ‘Counterparty Risk Concern’, ‘Settlement Certainty’) must be recorded. This is a critical evidence point for best execution.

- **Post-Trade Confirmation and Reporting** ▴ Upon execution, the system must automatically generate and send trade confirmations. Simultaneously, it must determine the reporting responsibility. If the firm is an SI trading with a non-SI, it must report the trade to its APA. This entire workflow must be completed within the prescribed timeframes (near real-time for liquid instruments).

- **Record Archiving** ▴ All data related to the RFQ event ▴ from the initial waiver check to the final trade report ▴ must be archived in a durable and accessible format for a minimum of five years. This archive is the definitive record for compliance audits.

> The entire RFQ process must be treated as a single, auditable event, with data integrity maintained at every stage.

![A meticulously engineered mechanism showcases a blue and grey striped block, representing a structured digital asset derivative, precisely engaged by a metallic tool. This setup illustrates high-fidelity execution within a controlled RFQ environment, optimizing block trade settlement and managing counterparty risk through robust market microstructure](https://options.greeks.live/wp-content/uploads/2025/08/precision-engineered-institutional-digital-asset-derivatives-rfq-execution.jpg)

## What Are the Granular Data Points for Record Keeping?

MiFID II’s record-keeping requirements are exceptionally detailed. The regulation demands that firms be able to reconstruct any trade and demonstrate the full context of the execution decision. For an RFQ workflow, this translates into a specific set of data points that must be captured and stored. The following table details these critical data elements, their regulatory context, and where they are typically captured in the firm’s technology stack.

### Table 2 ▴ MiFID II RFQ Record-Keeping Data Points

| Data Point | Description | Regulatory Context | System Capture Point |
| --- | --- | --- | --- |
| Unique Transaction Identifier (UTI) | A unique code assigned to the transaction to allow for consistent tracking across systems and reports. | ESMA Guidelines | Order Management System (OMS) |
| Legal Entity Identifier (LEI) | The LEI of the client, the counterparty, and the executing firm. | RTS 22 | Client Database / OMS |
| Quote ID | A unique identifier for each quote requested and received from a counterparty. | RTS 24 | Execution Management System (EMS) |
| Timestamp (Quote Request) | The date and time the RFQ was sent, captured to the microsecond or nanosecond. | RTS 25 | EMS / Trading Venue |
| Timestamp (Quote Receipt) | The date and time each quote was received from a counterparty. | RTS 25 | EMS / Trading Venue |
| Timestamp (Execution) | The date and time of the execution of the transaction. | RTS 25 | EMS / Trading Venue |
| Price and Quantity | The price and quantity of all quotes received and the final executed trade. | RTS 24 | EMS |
| Best Execution Justification | A codified reason for the execution decision, including factors considered. | RTS 28 | OMS / Compliance System |
| Venue of Execution | The venue where the trade was executed (e.g. ‘SI’ for a Systematic Internaliser). | RTS 22 | EMS / OMS |
| Trading Capacity | Indication of whether the firm acted as Principal (‘AOTC’) or Agent (‘MTCH’). | RTS 22 | OMS |

This granular level of data capture is the bedrock of a compliant system. It ensures that the firm can produce the quarterly [RTS 27](https://prime.greeks.live/area/rts-27/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (data on execution quality from venues) and annual RTS 28 (summary of top execution venues and quality obtained) reports with accuracy and confidence. The technological architecture must be designed from the ground up to support this level of detail, with synchronized clocks across all systems and robust data warehousing capabilities to store and retrieve petabytes of transaction data on demand.

![Abstract depiction of an institutional digital asset derivatives execution system. A central market microstructure wheel supports a Prime RFQ framework, revealing an algorithmic trading engine for high-fidelity execution of multi-leg spreads and block trades via advanced RFQ protocols, optimizing capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-prime-os-rfq-execution-system-1.jpg)

## References

- Gomber, P. et al. “High-frequency trading.” _Goethe University, House of Finance, Working Paper_ (2011).

- European Securities and Markets Authority. “MiFID II/MiFIR.” _ESMA_, 2018.

- Mittal, A. “MiFID-II and its impact on the future of trading.” _Journal of Investment Compliance_, vol. 18, no. 1, 2017, pp. 23-28.

- Buckle, S. and E. Panopoulou. “Best execution under MiFID ▴ A distinction between the new and the old regime.” _Journal of Banking Regulation_, vol. 18, no. 4, 2017, pp. 338-347.

- Menkveld, Albert J. “The Analytics of Best Execution.” _SSRN Electronic Journal_, 2016.

- Lehalle, Charles-Albert, and Sophie Laruelle, editors. _Market Microstructure in Practice_. World Scientific Publishing, 2018.

- Harris, Larry. _Trading and Exchanges ▴ Market Microstructure for Practitioners_. Oxford University Press, 2003.

- Financial Conduct Authority. “Markets in Financial Instruments Directive II Implementation.” _FCA Handbook_, 2018.

![A precision-engineered, multi-layered system visually representing institutional digital asset derivatives trading. Its interlocking components symbolize robust market microstructure, RFQ protocol integration, and high-fidelity execution](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-high-fidelity-execution-4.jpg)

## Reflection

![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)

## From Obligation to Intelligence

The architectural framework required to satisfy the Markets in Financial Instruments Directive II is substantial. The operational and technological demands for data capture, storage, and reporting represent a significant investment. Yet, a system built solely for the purpose of satisfying a regulator is a system operating at a fraction of its potential. The true strategic value of this architecture is realized when the perspective shifts from compliance as a defensive posture to compliance as an intelligence-gathering engine.

Every data point captured for regulatory purposes is also a piece of market intelligence. The archive of RFQ response times, pricing deviations, and fill rates is a proprietary dataset that describes the behavior of your liquidity providers under specific market conditions. Analyzing this data reveals which counterparties are most competitive for certain asset classes, at certain times of day, or at certain volatility levels.

It provides a quantitative basis for optimizing counterparty selection, refining execution algorithms, and ultimately, improving the quality of execution for clients. The regulatory framework compels the creation of a powerful data infrastructure; strategic foresight puts that infrastructure to work, transforming a mandated cost center into a source of durable competitive advantage.

![A sleek, black and beige institutional-grade device, featuring a prominent optical lens for real-time market microstructure analysis and an open modular port. This RFQ protocol engine facilitates high-fidelity execution of multi-leg spreads, optimizing price discovery for digital asset derivatives and accessing latent liquidity](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-execution-engine-for-high-fidelity-price-discovery-and-latent-liquidity-aggregation-across-multi-leg-spreads.jpg)

## Glossary

<a href="https://prime.greeks.live/question/how-can-firms-quantitatively-demonstrate-best-execution-for-rfq-trades-under-the-directive/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A futuristic, metallic structure with reflective surfaces and a central optical mechanism, symbolizing a robust Prime RFQ for institutional digital asset derivatives. It enables high-fidelity execution of RFQ protocols, optimizing price discovery and liquidity aggregation across diverse liquidity pools with minimal slippage](https://options.greeks.live/wp-content/uploads/2025/07/precision-engineered-platform-for-institutional-digital-asset-derivatives-rfq-protocol-optimized-execution-management-system-with-robust-liquidity-sourcing.jpg)

## Financial Instruments Directive

A firm quantitatively demonstrates RFQ best execution by architecting a data-driven system that proves its process is optimal. </a><a href="https://prime.greeks.live/area/counterparty-selection/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Metallic rods and translucent, layered panels against a dark backdrop. This abstract visualizes advanced RFQ protocols, enabling high-fidelity execution and price discovery across diverse liquidity pools for institutional digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/precision-market-microstructure-for-institutional-digital-asset-derivatives-rfq.jpg)

## Counterparty Selection

Meaning ▴ Counterparty selection refers to the systematic process of identifying, evaluating, and engaging specific entities for trade execution, risk transfer, or service provision, based on predefined criteria such as creditworthiness, liquidity provision, operational reliability, and pricing competitiveness within a digital asset derivatives ecosystem. </a><a href="https://prime.greeks.live/area/systematic-internaliser/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A precision-engineered apparatus with a luminous green beam, symbolizing a Prime RFQ for institutional digital asset derivatives. It facilitates high-fidelity execution via optimized RFQ protocols, ensuring precise price discovery and mitigating counterparty risk within market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-rfq-protocol-high-fidelity-digital-asset-derivatives-execution.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/rfq-workflow/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Sleek metallic system component with intersecting translucent fins, symbolizing multi-leg spread execution for institutional grade digital asset derivatives. It enables high-fidelity execution and price discovery via RFQ protocols, optimizing market microstructure and gamma exposure for capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-trading-system-rfq-protocols.jpg)

## Rfq Workflow

Meaning ▴ The RFQ Workflow defines a structured, programmatic process for a principal to solicit actionable price quotations from a pre-defined set of liquidity providers for a specific financial instrument and notional quantity. </a><a href="https://prime.greeks.live/area/pre-trade-transparency/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A teal sphere with gold bands, symbolizing a discrete digital asset derivative block trade, rests on a precision electronic trading platform. This illustrates granular market microstructure and high-fidelity execution within an RFQ protocol, driven by a Prime RFQ intelligence layer](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivative-rfq-protocol-high-fidelity-execution-platform-microstructure-intelligence-layer.jpg)

## Pre-Trade Transparency

Meaning ▴ Pre-Trade Transparency refers to the real-time dissemination of bid and offer prices, along with associated sizes, prior to the execution of a trade. </a><a href="https://prime.greeks.live/guide/why-your-execution-method-is-your-most-important-strategic-decision/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sophisticated modular component of a Crypto Derivatives OS, featuring an intelligence layer for real-time market microstructure analysis. Its precision engineering facilitates high-fidelity execution of digital asset derivatives via RFQ protocols, ensuring optimal price discovery and capital efficiency for institutional participants](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-module.jpg)

## Execution Decision

Your trade execution method is the single most decisive factor in converting your market thesis into tangible performance. </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 sophisticated mechanical system featuring a translucent, crystalline blade-like component, embodying a Prime RFQ for Digital Asset Derivatives. This visualizes high-fidelity execution of RFQ protocols, demonstrating aggregated inquiry and price discovery within market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-system-microstructure-1.jpg)

## 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/rts-28/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A precision-engineered institutional digital asset derivatives execution system cutaway. The teal Prime RFQ casing reveals intricate market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-prime-os-rfq-protocol-core-engine.jpg)

## Rts 28

Meaning ▴ RTS 28 refers to Regulatory Technical Standard 28 under MiFID II, which mandates investment firms and market operators to publish annual reports on the quality of execution of transactions on trading venues and for financial instruments. </a><a href="https://prime.greeks.live/area/pre-trade-transparency-waiver/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A polished, dark spherical component anchors a sophisticated system architecture, flanked by a precise green data bus. This represents a high-fidelity execution engine, enabling institutional-grade RFQ protocols for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/precision-engineered-institutional-digital-asset-derivatives-rfq-core.jpg)

## Pre-Trade Transparency Waiver

Meaning ▴ A Pre-Trade Transparency Waiver is a regulatory exemption allowing transaction execution without prior public quote disclosure. </a><a href="https://prime.greeks.live/area/large-in-scale/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A macro view of a precision-engineered metallic component, representing the robust core of an Institutional Grade Prime RFQ. Its intricate Market Microstructure design facilitates Digital Asset Derivatives RFQ Protocols, enabling High-Fidelity Execution and Algorithmic Trading for Block Trades, ensuring Capital Efficiency and Best Execution](https://options.greeks.live/wp-content/uploads/2025/07/precision-engineered-core-system-for-institutional-digital-asset-derivatives-rfq-protocol-execution-and-advanced-market-microstructure-optimization.jpg)

## Large-In-Scale

Meaning ▴ Large-in-Scale designates an order quantity significantly exceeding typical displayed liquidity on lit exchanges, necessitating specialized execution protocols to mitigate market impact and price dislocation. </a><a href="https://prime.greeks.live/area/best-execution-policy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A translucent digital asset derivative, like a multi-leg spread, precisely penetrates a bisected institutional trading platform. This reveals intricate market microstructure, symbolizing high-fidelity execution and aggregated liquidity, crucial for optimal RFQ price discovery within a Principal's Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-derivatives-rfq-execution-platform-microstructure.jpg)

## Best Execution Policy

Meaning ▴ The Best Execution Policy defines the obligation for a broker-dealer or trading firm to execute client orders on terms most favorable to the client. </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">
![Sleek, off-white cylindrical module with a dark blue recessed oval interface. This represents a Principal's Prime RFQ gateway for institutional digital asset derivatives, facilitating private quotation protocol for block trade execution, ensuring high-fidelity price discovery and capital efficiency through low-latency liquidity aggregation](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-rfq-portal-optimal-institutional-digital-asset-execution.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>

**Tags:** [Large-in-Scale](https://options.greeks.live/area/large-in-scale/), [Execution Quality Analysis](https://options.greeks.live/area/execution-quality-analysis/), [Order Management System](https://options.greeks.live/area/order-management-system/), [Best Execution Policy](https://options.greeks.live/area/best-execution-policy/), [Legal Entity Identifier](https://options.greeks.live/area/legal-entity-identifier/), [Transaction Reporting](https://options.greeks.live/area/transaction-reporting/)	

## Discover More

- 
### [How Does MiFID II Influence RFQ Data Governance and Best Execution Requirements?](https://options.greeks.live/question/how-does-mifid-ii-influence-rfq-data-governance-and-best-execution-requirements/)
![A sleek, metallic mechanism symbolizes an advanced institutional trading system. The central sphere represents aggregated liquidity and precise price discovery. Its metallic arm signifies an algorithmic trading engine, facilitating high-fidelity execution for digital asset derivatives, with intricate base circuitry depicting optimized RFQ protocols and robust market microstructure.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-engine-for-optimal-price-discovery-and-best-execution.jpg)

MiFID II mandates that RFQ protocols evolve into fully auditable, data-driven systems to prove best execution for clients.

- 
### [What Are the Primary Challenges for Asset Managers in Complying with MiFID II’s Transparency Regimes?](https://options.greeks.live/question/what-are-the-primary-challenges-for-asset-managers-in-complying-with-mifid-iis-transparency-regimes/)
![Dark, pointed instruments intersect, bisected by a luminous stream, against angular planes. This embodies institutional RFQ protocol driving cross-asset execution of digital asset derivatives. The stream signifies price discovery and liquidity aggregation within market microstructure, ensuring high-fidelity execution for block trades.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-best-execution-system-architecture.jpg)

MiFID II compliance demands a systemic re-architecture of data and execution protocols to achieve continuous, high-fidelity transparency.

- 
### [How Do Systematic Internalisers and Dark Pools Fit into a Best Execution Framework under MiFID II?](https://options.greeks.live/question/how-do-systematic-internalisers-and-dark-pools-fit-into-a-best-execution-framework-under-mifid-ii/)
![Translucent rods, beige, teal, and blue, intersect on a dark surface, symbolizing multi-leg spread execution for digital asset derivatives. Nodes represent atomic settlement points within a Principal's operational framework, visualizing RFQ protocol aggregation, cross-asset liquidity streams, and optimized market microstructure.](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-derivatives-rfq-protocol-aggregation-and-high-fidelity-execution.jpg)

Systematic Internalisers and Dark Pools are integral MiFID II components for managing market impact through distinct execution protocols.

- 
### [How Does the Rise of Systematic Internalisers Affect Best Execution Obligations for RFQs?](https://options.greeks.live/question/how-does-the-rise-of-systematic-internalisers-affect-best-execution-obligations-for-rfqs/)
![A symmetrical, reflective apparatus with a glowing Intelligence Layer core, embodying a Principal's Core Trading Engine for Digital Asset Derivatives. Four sleek blades represent multi-leg spread execution, dark liquidity aggregation, and high-fidelity execution via RFQ protocols, enabling atomic settlement.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-optimized-execution.jpg)

The rise of Systematic Internalisers transforms best execution for RFQs into a data-driven process of proving the best outcome was achieved across a fragmented liquidity network.

- 
### [How Do Regulatory Requirements for Best Execution Influence the Adoption of Automated RFQ Platforms?](https://options.greeks.live/question/how-do-regulatory-requirements-for-best-execution-influence-the-adoption-of-automated-rfq-platforms/)
![A central RFQ engine orchestrates diverse liquidity pools, represented by distinct blades, facilitating high-fidelity execution of institutional digital asset derivatives. Metallic rods signify robust FIX protocol connectivity, enabling efficient price discovery and atomic settlement for Bitcoin options.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-liquidity-orchestration.jpg)

Regulatory mandates for demonstrable best execution compel the adoption of automated RFQ platforms as a systemic solution for auditable price discovery.

- 
### [How Does the Systematic Internaliser Regime Impact Best Execution Obligations for the Buy-Side?](https://options.greeks.live/question/how-does-the-systematic-internaliser-regime-impact-best-execution-obligations-for-the-buy-side/)
![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)

The SI regime codifies principal liquidity, compelling buy-side firms to integrate this quasi-public venue into their execution framework to prove best execution.

- 
### [How Do MiFID II Reporting Timelines Differ between Public Trade Reports and Regulatory Transaction Reports?](https://options.greeks.live/question/how-do-mifid-ii-reporting-timelines-differ-between-public-trade-reports-and-regulatory-transaction-reports/)
![A cutaway view reveals the intricate core of an institutional-grade digital asset derivatives execution engine. The central price discovery aperture, flanked by pre-trade analytics layers, represents high-fidelity execution capabilities for multi-leg spread and private quotation via RFQ protocols for Bitcoin options.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-prime-os-rfq-protocol-engine-for-high-fidelity-execution-and-price-discovery-on-volatility-surface.jpg)

MiFID II mandates near real-time public reports for market transparency and detailed T+1 regulatory reports for market abuse surveillance.

- 
### [What Are the Primary Technological Requirements for Operating a Compliant Systematic Internaliser?](https://options.greeks.live/question/what-are-the-primary-technological-requirements-for-operating-a-compliant-systematic-internaliser/)
![An abstract, multi-layered spherical system with a dark central disk and control button. This visualizes a Prime RFQ for institutional digital asset derivatives, embodying an RFQ engine optimizing market microstructure for high-fidelity execution and best execution, ensuring capital efficiency in block trades and atomic settlement.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-engine-prime-os-4.jpg)

A compliant Systematic Internaliser's technology merges private execution with public transparency obligations.

- 
### [How Do Regulatory Requirements like MiFID II Influence the Design of Ems Rfq Workflows?](https://options.greeks.live/question/how-do-regulatory-requirements-like-mifid-ii-influence-the-design-of-ems-rfq-workflows/)
![Precision-engineered institutional-grade Prime RFQ modules connect via intricate hardware, embodying robust RFQ protocols for digital asset derivatives. This underlying market microstructure enables high-fidelity execution and atomic settlement, optimizing capital efficiency. A metallic button suggests precise private quotation control.](https://options.greeks.live/wp-content/uploads/2025/08/precision-engineered-prime-os-modules-enabling-institutional-digital-asset-derivatives-rfq-protocols-for-best-execution.jpg)

MiFID II transforms EMS RFQ workflows into auditable, data-centric processes to systematically prove best execution.

---

## Raw Schema Data

```json
{
    "@context": "https://schema.org",
    "@type": "BreadcrumbList",
    "itemListElement": [
        {
            "@type": "ListItem",
            "position": 1,
            "name": "Home",
            "item": "https://options.greeks.live"
        },
        {
            "@type": "ListItem",
            "position": 2,
            "name": "Question",
            "item": "https://options.greeks.live/question/"
        },
        {
            "@type": "ListItem",
            "position": 3,
            "name": "What Are the Key Compliance Considerations When Implementing an Electronic Rfq Workflow under Mifid Ii?",
            "item": "https://options.greeks.live/question/what-are-the-key-compliance-considerations-when-implementing-an-electronic-rfq-workflow-under-mifid-ii/"
        }
    ]
}
```

```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/what-are-the-key-compliance-considerations-when-implementing-an-electronic-rfq-workflow-under-mifid-ii/"
    },
    "headline": "What Are the Key Compliance Considerations When Implementing an Electronic Rfq Workflow under Mifid Ii? \u25b4 Question",
    "description": "A compliant MiFID II RFQ workflow is an engineered system that embeds regulatory proof into the execution process itself. \u25b4 Question",
    "url": "https://options.greeks.live/question/what-are-the-key-compliance-considerations-when-implementing-an-electronic-rfq-workflow-under-mifid-ii/",
    "datePublished": "2025-08-05T18:28:06+00:00",
    "dateModified": "2025-08-05T18:28:06+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/high-fidelity-institutional-rfq-protocol-engine-for-digital-asset-derivatives-options-trading.jpg",
        "caption": "A sleek, precision-engineered device with a prominent central lens, set against a dark background. This represents an institutional digital asset derivatives platform, embodying the Prime RFQ Intelligence Layer for RFQ protocol optimization. It orchestrates price discovery for Bitcoin options and Ethereum futures, ensuring high-fidelity execution and capital efficiency. The robust design facilitates block trade operations, multi-leg spread strategies, and counterparty risk mitigation, adhering to best execution and regulatory compliance standards."
    },
    "keywords": [
        "Approved Publication Arrangement",
        "Best Execution",
        "Best Execution Policy",
        "Counterparty Selection",
        "Execution Quality Analysis",
        "Large-in-Scale",
        "Legal Entity Identifier",
        "MiFID II Record Keeping",
        "Order Management System",
        "Pre-Trade Transparency",
        "Pre-Trade Transparency Waiver",
        "RFQ Workflow",
        "RTS 27",
        "RTS 28",
        "Systematic Internaliser",
        "Transaction Reporting"
    ]
}
```

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

```json
{
    "@context": "https://schema.org",
    "@type": "FAQPage",
    "mainEntity": [
        {
            "@type": "Question",
            "name": "How Does Data Architecture Support Best Execution?",
            "acceptedAnswer": {
                "@type": "Answer",
                "text": "Under MiFID II, best execution is an explicit obligation that must be proven with data. For an RFQ workflow, this means capturing not just the winning quote, but all quotes received. The strategy here is to design a data architecture that substantiates every execution decision. This involves more than simple record-keeping; it requires a system capable of reconstructing the entire RFQ event for subsequent analysis."
            }
        },
        {
            "@type": "Question",
            "name": "What Are The Granular Data Points For Record Keeping?",
            "acceptedAnswer": {
                "@type": "Answer",
                "text": "MiFID II's record-keeping requirements are exceptionally detailed. The regulation demands that firms be able to reconstruct any trade and demonstrate the full context of the execution decision. For an RFQ workflow, this translates into a specific set of data points that must be captured and stored. The following table details these critical data elements, their regulatory context, and where they are typically captured in the firm's technology stack."
            }
        }
    ]
}
```


---

**Original URL:** https://options.greeks.live/question/what-are-the-key-compliance-considerations-when-implementing-an-electronic-rfq-workflow-under-mifid-ii/
