# What Are the Key Differences in Applying Rts 28 Principles to Rfq versus Lit Markets? ▴ Question

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

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![A sleek metallic device with a central translucent sphere and dual sharp probes. This symbolizes an institutional-grade intelligence layer, driving high-fidelity execution for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-platform-precision.jpg)

![A precise digital asset derivatives trading mechanism, featuring transparent data conduits symbolizing RFQ protocol execution and multi-leg spread strategies. Intricate gears visualize market microstructure, ensuring high-fidelity execution and robust price discovery](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-institutional-digital-asset-derivatives-rfq-execution-framework.jpg)

## Concept

The application of Regulatory Technical Standard 28 (RTS 28) principles presents a fundamental divergence when applied to [Request for Quote](https://prime.greeks.live/area/request-for-quote/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (RFQ) and [lit markets](https://prime.greeks.live/area/lit-markets/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). This divergence stems from the inherent structural opposition of these two liquidity sources. Lit markets, characterized by their central limit order books (CLOB), offer a continuous stream of public, pre-trade transparent data.

Conversely, RFQ systems operate as private, point-in-time negotiations, revealing information only to the solicited participants. The core challenge of [RTS 28](https://prime.greeks.live/area/rts-28/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) is to create a standardized framework for [best execution](https://prime.greeks.live/area/best-execution/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) reporting that can meaningfully compare performance across these disparate environments.

From a systems perspective, lit markets are akin to an open, public utility, where price and liquidity data are broadcast widely. This transparency simplifies certain aspects of RTS 28 reporting, as a clear, time-stamped record of the available market price is readily accessible. The bilateral nature of [RFQ markets](https://prime.greeks.live/area/rfq-markets/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), however, functions more like a series of private, encrypted communication channels.

Here, the concept of a single “market price” at the moment of execution is less defined, replaced by a competitive spread of quotes from selected [liquidity providers](https://prime.greeks.live/area/liquidity-providers/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). This structural difference necessitates a more nuanced approach to demonstrating best execution, moving beyond simple price comparison to a qualitative assessment of the quoting process itself.

> RTS 28 forces a unified reporting standard onto market structures with fundamentally different data signatures, demanding a sophisticated approach to prove best execution.

The mandate of RTS 28 is to ensure that investment firms take all sufficient steps to obtain the best possible result for their clients. The execution factors to be considered are price, costs, speed, likelihood of execution and settlement, size, nature, or any other consideration relevant to the execution of the order. While these factors are universal, their application and evidence collection differ dramatically between lit and RFQ protocols.

In a [lit market](https://prime.greeks.live/area/lit-market/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), the public data stream provides a clear benchmark for these factors. For an RFQ, the firm must internally construct its own benchmark based on the responses received, creating a different set of data points and analytical challenges for compliance.

![Translucent teal glass pyramid and flat pane, geometrically aligned on a dark base, symbolize market microstructure and price discovery within RFQ protocols for institutional digital asset derivatives. This visualizes multi-leg spread construction, high-fidelity execution via a Principal's operational framework, ensuring atomic settlement for latent liquidity](https://options.greeks.live/wp-content/uploads/2025/07/transparent-geometric-structures-visualizing-multi-leg-spread-rfq-protocols-for-high-fidelity-institutional-digital-asset-derivatives-execution.jpg)

![A bifurcated sphere, symbolizing institutional digital asset derivatives, reveals a luminous turquoise core. This signifies a secure RFQ protocol for high-fidelity execution and private quotation](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-protocol-orchestration.jpg)

## Strategy

A firm’s strategy for RTS 28 compliance must be bifurcated, with distinct methodologies for lit and RFQ market interactions. For lit markets, the strategy is one of comprehensive [data capture](https://prime.greeks.live/area/data-capture/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) and comparative analytics. For RFQ markets, the strategy shifts to a focus on process integrity and qualitative justification. The overarching goal is to construct a cohesive best execution narrative that is defensible to regulators, even when the underlying data sources are fundamentally dissimilar.

![Polished metallic disks, resembling data platters, with a precise mechanical arm poised for high-fidelity execution. This embodies an institutional digital asset derivatives platform, optimizing RFQ protocol for efficient price discovery, managing market microstructure, and leveraging a Prime RFQ intelligence layer to minimize execution latency](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-precision-execution-via-advanced-rfq-protocols-and-prime-os-intelligence-layer-for-optimal-market-microstructure.jpg)

## Data Strategy for Lit Markets

In the context of lit markets, the strategic imperative is to systematically record and analyze the publicly available order book data at the time of execution. This involves capturing not just the executed price but also the depth of the book, the displayed liquidity at various price levels, and the speed of execution. The resulting dataset allows for a quantitative, evidence-based comparison against the chosen execution venue. A firm’s [execution management system](https://prime.greeks.live/area/execution-management-system/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (EMS) and [order management system](https://prime.greeks.live/area/order-management-system/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (OMS) must be architected to log these data points for every single order.

- **Benchmarking** ▴ The primary strategy is to benchmark every lit market execution against the European Best Bid and Offer (EBBO) or other relevant consolidated tape metrics. This provides a clear, quantitative measure of price improvement or slippage.

- **TCA Integration** ▴ [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 the lit market strategy. Post-trade TCA reports should analyze execution performance against various benchmarks, such as Volume-Weighted Average Price (VWAP) and Arrival Price, to provide a multi-faceted view of [execution quality](https://prime.greeks.live/area/execution-quality/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite).

- **Venue Analysis** ▴ The strategy must include a periodic, data-driven review of all lit venues used. This analysis should compare venues based on metrics like fill rates, price improvement statistics, and instances of latency-driven slippage, allowing the firm to optimize its routing logic.

![A complex, reflective apparatus with concentric rings and metallic arms supporting two distinct spheres. This embodies RFQ protocols, market microstructure, and high-fidelity execution for institutional digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-engine-3.jpg)

## Process Integrity for RFQ Markets

For RFQ markets, where pre-trade data is private, the strategic focus shifts from external benchmarking to internal process validation. The firm must demonstrate that its process for soliciting quotes is fair, competitive, and designed to achieve the best outcome. The strategy is less about proving the executed price was the absolute best available in the entire market and more about proving it was the best available within a robust and well-documented competitive process.

> For RFQ venues, demonstrating best execution is a matter of proving the integrity of the selection process, not just the quality of the final price.

The core of the RFQ strategy is the creation of an auditable trail for each request. This trail must document which liquidity providers were solicited, their response times, the quotes they provided, and a clear justification for why the winning quote was selected. This qualitative information becomes a central part of the RTS 28 report.

The following table illustrates the strategic differences in data collection and analysis for RTS 28 compliance:

| Factor | Lit Market Strategy | RFQ Market Strategy |
| --- | --- | --- |
| Price | Quantitative comparison to public benchmark (e.g. EBBO). | Qualitative and quantitative comparison of quotes received from a competitive panel. |
| Costs | Analysis of explicit costs (fees, commissions) and implicit costs (slippage). | Analysis of the all-in price quoted, which typically includes the liquidity provider’s spread and costs. |
| Speed of Execution | Measured in milliseconds from order routing to confirmation. | Measured by the time taken to complete the RFQ process and the responsiveness of liquidity providers. |
| Likelihood of Execution | Analysis of fill rates and order completion statistics on the venue. | Assessment of the reliability of liquidity providers to provide competitive quotes for the desired size. |

![A reflective disc, symbolizing a Prime RFQ data layer, supports a translucent teal sphere with Yin-Yang, representing Quantitative Analysis and Price Discovery for Digital Asset Derivatives. A sleek mechanical arm signifies High-Fidelity Execution and Algorithmic Trading via RFQ Protocol, within a Principal's Operational Framework](https://options.greeks.live/wp-content/uploads/2025/07/precision-execution-digital-asset-derivatives-rfq-protocols-principal-trading-infrastructure-automated-liquidity-aggregation-intelligence-layer.jpg)

![Central, interlocked mechanical structures symbolize a sophisticated Crypto Derivatives OS driving institutional RFQ protocol. Surrounding blades represent diverse liquidity pools and multi-leg spread components](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-architecture-optimizing-high-fidelity-execution-across-diverse-liquidity-pools.jpg)

## Execution

The operational execution of RTS 28 reporting requires a sophisticated data infrastructure capable of handling the distinct data types from both lit and RFQ sources. The execution framework must be designed not only for compliance but also to generate actionable insights that feed back into the firm’s execution policy and venue selection process. This is where the theoretical principles of best execution are translated into concrete operational workflows.

![A precision optical system with a reflective lens embodies the Prime RFQ intelligence layer. Gray and green planes represent divergent RFQ protocols or multi-leg spread strategies for institutional digital asset derivatives, enabling high-fidelity execution and optimal price discovery within complex market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-intelligent-core-driving-digital-asset-derivatives-rfq-protocols-high-fidelity-execution-across-diverse-liquidity-pools-for-optimal-price-discovery.jpg)

## System Architecture for Data Capture

A firm’s technology stack is the foundation of its RTS 28 execution capability. The Order [Management System](https://prime.greeks.live/question/what-is-the-relationship-between-an-order-management-system-and-an-execution-management-system/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (OMS) and Execution Management System (EMS) must be configured to act as the primary data capture and logging mechanisms. For lit market orders, the EMS must be connected to a low-latency market data feed to timestamp and record the state of the order book at the moment of execution. For RFQ orders, the EMS must be able to parse and store the structured data from RFQ platforms, including the identities of the liquidity providers, the full set of quotes, and the timestamps for each stage of the negotiation.

The following table details the specific data fields that must be captured and stored for effective RTS 28 reporting, highlighting the differences between the two market types:

| Data Field | Lit Market Capture | RFQ Market Capture |
| --- | --- | --- |
| Venue Identifier | MIC code of the exchange or MTF. | MIC code of the SI or OTF facilitating the RFQ. |
| Instrument Identifier | ISIN code. | ISIN code. |
| Execution Timestamp | Nanosecond-level timestamp of trade confirmation. | Timestamp of final trade agreement. |
| Pre-Trade Benchmark | Snapshot of the EBBO at the time of order routing. | Full record of all quotes received in response to the RFQ. |
| Post-Trade Price | The executed price. | The final agreed-upon price. |
| Rejection/Counterparty Data | Data on order rejections or routing failures. | Record of which LPs declined to quote and the reasons, if available. |
| Qualitative Justification | Typically not required if execution is at or better than the benchmark. | Mandatory field to justify the choice of counterparty, especially if not the best price. |

![A diagonal metallic framework supports two dark circular elements with blue rims, connected by a central oval interface. This represents an institutional-grade RFQ protocol for digital asset derivatives, facilitating block trade execution, high-fidelity execution, dark liquidity, and atomic settlement on a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/optimized-institutional-digital-asset-derivatives-trading-system-rfq-protocols-and-atomic-settlement.jpg)

## The Best Execution Committee Workflow

The operational workflow for RTS 28 culminates in the periodic review by the firm’s Best Execution Committee. This committee is responsible for analyzing the captured data and assessing the effectiveness of the firm’s execution arrangements. The process must be rigorous and documented.

- **Data Aggregation** ▴ The first step is to aggregate the execution data from all sources into a centralized database. This data must be normalized to allow for meaningful comparison.

- **Quantitative Analysis (Lit Markets)** ▴ The committee reviews TCA reports for lit market flow, identifying trends in execution quality by venue, time of day, and order type. They will look for systematic underperformance in any venue and recommend changes to the smart order router’s logic.

- **Qualitative Analysis (RFQ Markets)** ▴ For RFQ flow, the committee reviews the process integrity. They will analyze the competitiveness of quote panels, the frequency with which different liquidity providers win, and the justifications provided for selecting counterparties. They will look for signs of concentration risk or a lack of competitive tension.

- **Report Generation** ▴ The committee oversees the generation of the public RTS 28 report, ensuring that it accurately reflects the firm’s execution practices and includes the required qualitative summaries of the analysis performed.

- **Policy Feedback Loop** ▴ The most critical step is to use the findings of the review to update the firm’s Best Execution Policy. This could involve adding or removing venues, changing the composition of RFQ panels, or adjusting algorithmic trading strategies.

> Effective RTS 28 execution is a continuous cycle of data capture, rigorous analysis, and policy refinement, turning a compliance burden into a source of competitive advantage.

Ultimately, the successful execution of RTS 28 principles across both lit and RFQ markets depends on a firm’s ability to build a unified analytical framework. This framework must be flexible enough to accommodate the structural differences of each market type while being rigid enough to provide a consistent and defensible measure of execution quality. It is a challenge of data engineering, process design, and analytical rigor.

![A crystalline droplet, representing a block trade or liquidity pool, rests precisely on an advanced Crypto Derivatives OS platform. Its internal shimmering particles signify aggregated order flow and implied volatility data, demonstrating high-fidelity execution and capital efficiency within market microstructure, facilitating private quotation via RFQ protocols](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-prime-os-rfq-protocol-best-execution.jpg)

## References

- European Securities and Markets Authority. (2017). Commission Delegated Regulation (EU) 2017/576 of 8 June 2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council with regard to regulatory technical standards for the annual publication by investment firms of information on the identity of execution venues and on the quality of execution. Official Journal of the European Union.

- Financial Conduct Authority. (2021). Markets in Financial Instruments (Amendment) (EU Exit) Regulations 2018. London, UK ▴ FCA.

- O’Hara, M. (1995). Market Microstructure Theory. Blackwell Publishers.

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

- European Securities and Markets Authority. (2024). Public Statement on the deprioritisation of supervisory actions on the obligation to publish RTS 28 reports. ESMA35-335435667-5871.

- Parlour, C. A. & Seppi, D. J. (2008). Limit Order Markets ▴ A Survey. In Handbook of Financial Intermediation and Banking. Elsevier.

- Madhavan, A. (2000). Market microstructure ▴ A survey. Journal of Financial Markets, 3 (3), 205-258.

![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)

## Reflection

The dual challenge of applying RTS 28 across lit and RFQ markets compels a deeper examination of a firm’s internal operational architecture. The regulation, while focused on external reporting, functions as an internal audit of a firm’s entire execution apparatus. It forces a systematic evaluation of not just where orders are sent, but why they are sent there and how performance is measured. The process of satisfying these requirements reveals the sophistication, or lack thereof, of a firm’s data infrastructure, its analytical capabilities, and the robustness of its decision-making frameworks.

Viewing RTS 28 as a compliance task is a limited perspective. Instead, it should be seen as a blueprint for building a superior execution intelligence system. The data collected for reporting can be repurposed to refine algorithmic strategies, optimize liquidity provider relationships, and ultimately, deliver measurably better outcomes for clients.

The principles embedded within the regulation provide a framework for continuous improvement, pushing firms to move beyond static policies to a dynamic, data-driven approach to market interaction. The ultimate question is not whether a firm can produce the report, but whether it can harness the underlying process to forge a durable competitive edge.

![A precise geometric prism reflects on a dark, structured surface, symbolizing institutional digital asset derivatives market microstructure. This visualizes block trade execution and price discovery for multi-leg spreads via RFQ protocols, ensuring high-fidelity execution and capital efficiency within Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-precision-execution.jpg)

## Glossary

<a href="https://prime.greeks.live/area/request-for-quote/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A multi-faceted crystalline star, symbolizing the intricate Prime RFQ architecture, rests on a reflective dark surface. Its sharp angles represent precise algorithmic trading for institutional digital asset derivatives, enabling high-fidelity execution and price discovery](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-high-fidelity-execution-market-microstructure-optimization-for-prime-os-alpha-generation.jpg)

## Request for Quote

Meaning ▴ A Request for Quote, or RFQ, constitutes a formal communication initiated by a potential buyer or seller to solicit price quotations for a specified financial instrument or block of instruments from one or more liquidity providers. </a><a href="https://prime.greeks.live/area/lit-markets/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Abstract geometric forms in muted beige, grey, and teal represent the intricate market microstructure of institutional digital asset derivatives. Sharp angles and depth symbolize high-fidelity execution and price discovery within RFQ protocols, highlighting capital efficiency and real-time risk management for multi-leg spreads on a Prime RFQ platform](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-optimized-rfq-execution-for-digital-asset-derivatives.jpg)

## Lit Markets

Meaning ▴ Lit Markets are centralized exchanges or trading venues characterized by pre-trade transparency, where bids and offers are publicly displayed in an order book prior to execution. </a><a href="https://prime.greeks.live/area/best-execution/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A central processing core with intersecting, transparent structures revealing intricate internal components and blue data flows. This symbolizes an institutional digital asset derivatives platform's Prime RFQ, orchestrating high-fidelity execution, managing aggregated RFQ inquiries, and ensuring atomic settlement within dynamic market microstructure, optimizing capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-trading-system-facilitating-high-fidelity-rfq-protocol-optimization-for-best-execution-and-atomic-settlement.jpg)

## 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 sleek cream-colored device with a dark blue optical sensor embodies Price Discovery for Digital Asset Derivatives. It signifies High-Fidelity Execution via RFQ Protocols, driven by an Intelligence Layer optimizing Market Microstructure for Algorithmic Trading on a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-high-fidelity-execution-engine-optimized-rfq-protocols-prime-os-intelligence-layer.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/rfq-markets/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A central toroidal structure and intricate core are bisected by two blades: one algorithmic with circuits, the other solid. This symbolizes an institutional digital asset derivatives platform, leveraging RFQ protocols for high-fidelity execution and price discovery](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-derivatives-rfq-execution-hub-integrating-algorithmic-intelligence-for-high-fidelity-price-discovery-and-liquidity-aggregation.jpg)

## Rfq Markets

Meaning ▴ RFQ Markets represent a structured, bilateral negotiation mechanism within institutional trading, facilitating the Request for Quote process where a Principal solicits competitive, executable bids and offers for a specified digital asset or derivative from a select group of liquidity providers. </a><a href="https://prime.greeks.live/area/liquidity-providers/?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)

## Liquidity Providers

Meaning ▴ Liquidity Providers are market participants, typically institutional entities or sophisticated trading firms, that facilitate efficient market operations by continuously quoting bid and offer prices for financial instruments. </a><a href="https://prime.greeks.live/area/lit-market/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sophisticated digital asset derivatives trading mechanism features a central processing hub with luminous blue accents, symbolizing an intelligence layer driving high fidelity execution. Transparent circular elements represent dynamic liquidity pools and a complex volatility surface, revealing market microstructure and atomic settlement via an advanced RFQ protocol](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-high-fidelity-execution-framework-optimizing-market-microstructure-price-discovery-intelligence-layer.jpg)

## Lit Market

Meaning ▴ A lit market is a trading venue providing mandatory pre-trade transparency. </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">
![Precisely balanced blue spheres on a beam and angular fulcrum, atop a white dome. This signifies RFQ protocol optimization for institutional digital asset derivatives, ensuring high-fidelity execution, price discovery, capital efficiency, and systemic equilibrium in multi-leg spreads](https://options.greeks.live/wp-content/uploads/2025/07/systemic-equilibrium-in-digital-asset-derivatives-rfq-protocols.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/execution-management-system/?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)

## Execution Management System

Meaning ▴ An Execution Management System (EMS) is a specialized software application engineered to facilitate and optimize the electronic execution of financial trades across diverse venues and asset classes. </a><a href="https://prime.greeks.live/area/order-management-system/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, bimodal digital asset derivatives execution interface, partially open, revealing a dark, secure internal structure. This symbolizes high-fidelity execution and strategic price discovery via institutional RFQ protocols](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-protocols-price-discovery.jpg)

## Order Management System

Meaning ▴ A robust Order Management System is a specialized software application engineered to oversee the complete lifecycle of financial orders, from their initial generation and routing to execution and post-trade allocation. </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">
![Geometric shapes symbolize an institutional digital asset derivatives trading ecosystem. A pyramid denotes foundational quantitative analysis and the Principal's operational framework](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-derivatives-rfq-execution-system-microstructure.jpg)

## Transaction Cost Analysis

Meaning ▴ Transaction Cost Analysis (TCA) is the quantitative methodology for assessing the explicit and implicit costs incurred during the execution of financial trades. </a><a href="https://prime.greeks.live/area/execution-quality/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Sharp, intersecting geometric planes in teal, deep blue, and beige form a precise, pointed leading edge against darkness. This signifies High-Fidelity Execution for Institutional Digital Asset Derivatives, reflecting complex Market Microstructure and Price Discovery](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-digital-asset-derivatives-rfq-market-microstructure-2.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/question/what-is-the-relationship-between-an-order-management-system-and-an-execution-management-system/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A futuristic system component with a split design and intricate central element, embodying advanced RFQ protocols. This visualizes high-fidelity execution, precise price discovery, and granular market microstructure control for institutional digital asset derivatives, optimizing liquidity provision and minimizing slippage](https://options.greeks.live/wp-content/uploads/2025/07/advanced-rfq-protocols-for-digital-asset-derivatives-price-discovery.jpg)

## Management System

The OMS codifies investment strategy into compliant, executable orders; the EMS translates those orders into optimized market interaction. </a>

**Tags:** [Lit Markets](https://options.greeks.live/area/lit-markets/), [Regulatory Reporting](https://options.greeks.live/area/regulatory-reporting/), [MiFID II](https://options.greeks.live/area/mifid-ii/), [Execution Quality](https://options.greeks.live/area/execution-quality/), [Systematic Internaliser](https://options.greeks.live/area/systematic-internaliser/), [Data Capture](https://options.greeks.live/area/data-capture/)	

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Automated RFQ protocols systematize competitive price discovery, generating the auditable data trail required to prove MiFID II best execution.

- 
### [How Does MiFID II’s Best Execution Policy Specifically Alter RFQ Workflows for Equity Blocks?](https://options.greeks.live/question/how-does-mifid-iis-best-execution-policy-specifically-alter-rfq-workflows-for-equity-blocks/)
![A precision-engineered control mechanism, featuring a ribbed dial and prominent green indicator, signifies Institutional Grade Digital Asset Derivatives RFQ Protocol optimization. This represents High-Fidelity Execution, Price Discovery, and Volatility Surface calibration for Algorithmic Trading. The central indicator suggests Atomic Settlement within a Prime RFQ Market Microstructure.](https://options.greeks.live/wp-content/uploads/2025/07/principal-operational-framework-precision-calibration-for-institutional-digital-asset-derivatives-rfq-protocol-high-fidelity-execution-prime-os-and-volatility-surface-optimization.jpg)

MiFID II mandates a systematic, data-driven RFQ process, transforming best execution into a provable, multi-factor optimization.

- 
### [What Are the Current Best Practices for Demonstrating Best Execution after RTS 28?](https://options.greeks.live/question/what-are-the-current-best-practices-for-demonstrating-best-execution-after-rts-28/)
![A complex sphere, split blue implied volatility surface and white, balances on a beam. A transparent sphere acts as fulcrum. This illustrates institutional digital asset derivative RFQ execution, enabling optimal price discovery, leveraging Prime RFQ for high-fidelity execution across fragmented market microstructure and dark liquidity pools.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-balancing-liquidity.jpg)

Demonstrating best execution requires a systemic, data-driven architecture to prove optimal outcomes.

- 
### [What Are the Specific Data Points Required to Prove Best Execution for an RFQ Trade?](https://options.greeks.live/question/what-are-the-specific-data-points-required-to-prove-best-execution-for-an-rfq-trade/)
![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)

Proving RFQ best execution requires a complete, time-stamped data record of pre-trade conditions, at-trade competition, and post-trade analysis.

- 
### [How Do MiFID II Reporting Requirements like RTS 28 Impact RFQ Strategy?](https://options.greeks.live/question/how-do-mifid-ii-reporting-requirements-like-rts-28-impact-rfq-strategy/)
![An abstract geometric composition depicting the core Prime RFQ for institutional digital asset derivatives. Diverse shapes symbolize aggregated liquidity pools and varied market microstructure, while a central glowing ring signifies precise RFQ protocol execution and atomic settlement across multi-leg spreads, ensuring capital efficiency.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-architecture.jpg)

RTS 28's legacy is the data architecture that transforms RFQ strategy from a relationship-based art to an evidence-based science.

- 
### [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.

- 
### [What Are the Primary Technological Challenges in Complying with MiFID II’s Best Execution Requirements?](https://options.greeks.live/question/what-are-the-primary-technological-challenges-in-complying-with-mifid-iis-best-execution-requirements/)
![A sophisticated, angular digital asset derivatives execution engine with glowing circuit traces and an integrated chip rests on a textured platform. This symbolizes advanced RFQ protocols, high-fidelity execution, and the robust Principal's operational framework supporting institutional-grade market microstructure and optimized liquidity aggregation.](https://options.greeks.live/wp-content/uploads/2025/08/advanced-digital-asset-derivatives-rfq-protocol-engine-architecture.jpg)

MiFID II best execution compliance demands an integrated data architecture to prove optimal outcomes across a vector of performance factors.

- 
### [How Do Regulatory Changes like MiFID II Affect the Strategic Use of RFQ versus Lit Markets?](https://options.greeks.live/question/how-do-regulatory-changes-like-mifid-ii-affect-the-strategic-use-of-rfq-versus-lit-markets/)
![Precision-engineered metallic tracks house a textured block with a central threaded aperture. This visualizes a core RFQ execution component within an institutional market microstructure, enabling private quotation for digital asset derivatives. It represents high-fidelity execution and atomic settlement via a robust Principal's operational framework.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-rfq-execution-framework-precision-microstructure-component.jpg)

MiFID II's constraints on dark pools catalyzed RFQ's rise, transforming it into a strategic tool for sourcing block liquidity with controlled risk.

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---

**Original URL:** https://options.greeks.live/question/what-are-the-key-differences-in-applying-rts-28-principles-to-rfq-versus-lit-markets/
