# What Are the Key Differences in Best Execution Obligations between MiFID I and MiFID II? ▴ Question

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

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## Concept

The transition from the Markets in [Financial Instruments](https://prime.greeks.live/area/financial-instruments/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) Directive (MiFID I) to its successor, MiFID II, represents a fundamental recalibration of the European Union’s regulatory architecture for financial markets. At the core of this evolution is the principle of best execution, which underwent a significant philosophical and operational transformation. The initial framework under MiFID I established the foundational requirement for firms to seek the best possible result for their clients. This was a crucial first step in standardizing [investor protection](https://prime.greeks.live/area/investor-protection/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) across member states.

However, the 2008 financial crisis and the subsequent evolution of market structures, including the proliferation of high-frequency trading and dark pools, exposed the limitations of this initial directive. The market had become faster, more fragmented, and technologically complex, demanding a more robust and prescriptive regulatory response.

[MiFID II](https://prime.greeks.live/area/mifid-ii/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) responds directly to this new reality. It re-engineers the [best execution](https://prime.greeks.live/area/best-execution/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) obligation from a principles-based guideline into a data-driven, evidence-based discipline. The directive moves beyond the abstract requirement to simply have a policy in place. Instead, it mandates a systematic and demonstrable process for achieving and verifying the best possible outcome for clients on a consistent basis.

This shift is most clearly embodied in the change of language from taking all “reasonable steps” [under MiFID](https://prime.greeks.live/question/what-are-the-operational-consequences-of-misreporting-under-mifid-ii-versus-a-reporting-failure-under-emir/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) I to all “sufficient steps” under MiFID II. This linguistic adjustment signals a higher regulatory bar, demanding that firms not only design effective execution arrangements but also prove their efficacy through rigorous monitoring and transparent reporting. The focus is on creating a feedback loop where execution data informs and refines the firm’s policies and procedures, ensuring they remain effective in a dynamic market environment.

> MiFID II fundamentally elevates best execution from a procedural obligation to a quantifiable, evidence-based standard, demanding firms prove the quality of their client outcomes.

This evolution also broadened the scope of the obligation itself. While [MiFID I](https://prime.greeks.live/area/mifid-i/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite)’s focus was primarily on equities traded on regulated markets, MiFID II extends its reach comprehensively across all asset classes, including bonds, derivatives, and other over-the-counter (OTC) products. This expansion acknowledges the reality that significant risk and value are transferred in non-equity markets, and investors in these instruments deserve the same level of protection.

For OTC products, MiFID II introduces a specific requirement to check the fairness of the price by gathering market data and, where possible, comparing it with similar products, thereby bringing a new level of scrutiny to previously opaque transactions. The directive effectively dismantles the notion that best execution is a concept confined to lit, equity-centric order books, recasting it as a universal principle of client care applicable to the full spectrum of a firm’s trading activity.

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## Strategy

Adapting to the MiFID II regime required investment firms to fundamentally overhaul their strategic approach to trade execution. The directive’s insistence on “[all sufficient steps](https://prime.greeks.live/area/all-sufficient-steps/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite)” necessitated a move from a passive, policy-based compliance model to an active, data-centric strategy focused on continuous improvement and demonstrable proof of [execution quality](https://prime.greeks.live/area/execution-quality/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). This strategic pivot affected everything from front-office decision-making to back-office reporting and overarching corporate governance.

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## From Policy to Proof

Under MiFID I, a firm could largely satisfy its obligation by establishing and following a reasonable [order execution policy](https://prime.greeks.live/area/order-execution-policy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). The strategic emphasis was on documentation and process adherence. MiFID II, however, demands that firms not only have a policy but also continuously test its effectiveness. The strategic imperative became one of monitoring, analysis, and adaptation.

Firms had to develop a robust framework for both pre-trade (ex-ante) analysis and post-trade (ex-post) verification. This involves systematically evaluating the execution quality achieved against the factors of price, costs, speed, likelihood of execution, and any other relevant considerations. The strategy is no longer just about having a map; it’s about constantly using a GPS to verify the route taken and find better ones for the future.

> The strategic shift under MiFID II moved firms from merely documenting their execution policies to actively proving their effectiveness through continuous data analysis and public disclosure.

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## How Did Venue Selection Strategy Evolve?

One of the most significant strategic shifts involved the selection of [execution venues](https://prime.greeks.live/area/execution-venues/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). MiFID I required firms to consider different venues, but MiFID II made this process far more rigorous and transparent. The directive explicitly states that where multiple competing venues exist, a firm must account for its own commissions and the costs associated with each venue in its analysis.

This prevents firms from routing orders to venues based on preferential fee structures that benefit the firm at the client’s expense. Furthermore, MiFID II introduced new disclosure requirements through [Regulatory Technical Standards](https://prime.greeks.live/area/regulatory-technical-standards/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (RTS) 27 and 28, which fundamentally altered the strategic landscape.

- **[RTS 27](https://prime.greeks.live/area/rts-27/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) Reports** ▴ These reports are produced by the execution venues themselves (including regulated markets, MTFs, OTFs, and systematic internalisers). They provide detailed, standardized data on execution quality, covering aspects like price, costs, and likelihood of execution for specific financial instruments. This provides firms with the raw data needed to conduct objective, cross-venue comparisons. 

- **[RTS 28](https://prime.greeks.live/area/rts-28/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) Reports** ▴ These reports are produced by the [investment firms](https://prime.greeks.live/area/investment-firms/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). Annually, firms must publish a report detailing their top five execution venues for each class of financial instrument, along with a summary of the analysis and conclusions drawn from their monitoring of execution quality. This public disclosure creates a powerful incentive for firms to build robust and defensible venue selection strategies. 

This data-rich environment forced firms to develop a more quantitative and systematic approach to venue analysis, moving away from purely qualitative or relationship-based decisions.

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## Comparative Analysis MiFID I Vs MiFID II

The strategic adjustments required by MiFID II are best understood through a direct comparison with its predecessor.

| Obligation Area | MiFID I Requirement | MiFID II Requirement |
| --- | --- | --- |
| Core Standard | Take all “reasonable steps” to obtain the best possible result. | Take all “sufficient steps” to obtain the best possible result, implying a higher, more demonstrable standard. |
| Scope of Instruments | Primarily focused on equities, with less clarity for other asset classes. | Explicitly covers all financial instruments, including equities, bonds, derivatives, and OTC products. |
| Cost Consideration | Costs were a factor, but total cost analysis was less explicit. | Mandates consideration of “total consideration,” representing the price of the instrument and all associated costs, including venue fees, clearing and settlement fees, and firm commissions. |
| Execution Policy | Firms required to establish and implement an order execution policy. | Policy must be more detailed, customized by asset class, and clearly explain how venues are chosen and orders are executed. |
| Transparency & Reporting | Limited public disclosure requirements. | Mandatory public reporting via RTS 27 (from venues) and RTS 28 (from firms), requiring disclosure of top venues and execution quality analysis. |
| Governance | Less emphasis on formal governance structures for best execution. | Strengthened requirements for internal governance, controls, and management body responsibility for overseeing the execution policy. |

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## Execution

The execution of best execution obligations under MiFID II is a technical and data-intensive discipline. It transforms the high-level principles of the directive into concrete operational workflows, technological requirements, and quantitative analysis. Firms must build and maintain a sophisticated operational architecture capable of capturing vast amounts of data, performing complex analytics, and producing detailed regulatory reports. This is where the theoretical framework of the regulation meets the practical reality of the trading desk.

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## The Operational Playbook for RTS 28 Reporting

The annual RTS 28 report is a cornerstone of MiFID II’s execution framework. It is the primary mechanism through which a firm demonstrates its [compliance](https://prime.greeks.live/area/compliance/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) to clients and regulators. A successful execution strategy for RTS 28 involves a clear, multi-stage process.

- **Data Aggregation** ▴ The first step is to collect and consolidate all relevant order and execution data for the reporting period. This data must be granular, capturing timestamps, venue, price, costs, and client classification for every single trade across all asset classes. 

- **Venue Classification** ▴ Firms must accurately categorize each execution venue used. The primary categories include Regulated Markets, Multilateral Trading Facilities (MTFs), Organised Trading Facilities (OTFs), Systematic Internalisers (SIs), and other liquidity providers. 

- **Quantitative Analysis** ▴ For each class of financial instrument, the firm must calculate the volume and number of orders executed at each venue. This analysis forms the basis of the “Top 5 Venues” table that is central to the report. 

- **Qualitative Summary** ▴ The quantitative data must be accompanied by a qualitative summary. This narrative explains the firm’s execution strategy, how it monitors execution quality, the relative importance of the execution factors (price, cost, speed, etc.), and any changes made to the execution arrangements during the year. 

- **Report Generation and Publication** ▴ The final report, containing both the quantitative tables and the qualitative summary, must be generated and made publicly available on the firm’s website by the end of April for the preceding calendar year. 

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## Quantitative Modeling and Data Analysis

MiFID II’s execution requirements are built on a foundation of data. Firms must move beyond simple volume metrics and engage in a more sophisticated analysis of execution quality. This involves comparing execution performance across different venues and strategies.

A key component of this is [Total Cost Analysis](https://prime.greeks.live/area/total-cost-analysis/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (TCA), which has become an indispensable tool for MiFID II compliance. TCA provides a framework for measuring all costs associated with a trade, both explicit and implicit.

> Effective execution under MiFID II hinges on a firm’s ability to translate raw trade data into actionable intelligence through rigorous quantitative analysis and transparent reporting.

The table below illustrates a simplified TCA comparison for a hypothetical EUR/USD trade executed across three different venues. This is the type of granular analysis that underpins a robust MiFID II best execution framework.

| Execution Metric | Venue A (ECN) | Venue B (SI) | Venue C (MTF) |
| --- | --- | --- | --- |
| Trade Size (EUR) | 10,000,000 | 10,000,000 | 10,000,000 |
| Arrival Price (Mid) | 1.10500 | 1.10500 | 1.10500 |
| Executed Price | 1.10505 | 1.10502 | 1.10510 |
| Slippage (bps vs Arrival) | 0.5 | 0.2 | 1.0 |
| Explicit Commission (USD) | $20 | $0 | $15 |
| Total Implicit Cost (Slippage in USD) | $500 | $200 | $1,000 |
| Total Execution Cost (USD) | $520 | $200 | $1,015 |

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## What Are the Technological Implications?

Compliance with MiFID II’s execution obligations is impossible without significant investment in technology. Firms require a suite of integrated systems to manage the end-to-end process.

- **Order Management Systems (OMS)** ▴ The OMS must be capable of capturing all the required data points for each order, including client instructions and execution factor priorities. 

- **Execution Management Systems (EMS) and Smart Order Routers (SORs)** ▴ These systems are critical for implementing the [execution policy](https://prime.greeks.live/area/execution-policy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). SORs must be programmed with sophisticated logic to route orders to the optimal venue based on a real-time analysis of market data, venue costs, and the firm’s TCA models. 

- **Data Warehousing and Analytics** ▴ Firms need robust data infrastructure to store and process the immense volumes of trade and market data required for ex-post analysis and regulatory reporting. This often involves dedicated data warehouses and powerful business intelligence tools. 

- **Reporting Solutions** ▴ Specialized software is often used to automate the generation of RTS 27 and RTS 28 reports, ensuring accuracy and timeliness. 

Ultimately, the execution of MiFID II’s best execution rules requires a fusion of regulatory knowledge, quantitative skill, and technological infrastructure. It represents a permanent shift in how investment firms must approach their most fundamental task ▴ executing orders on behalf of their clients.

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## References

- Foucault, Thierry, Marco Pagano, and Ailsa Röell. “Market liquidity ▴ theory, evidence, and policy.” Oxford University Press, 2013.

- European Securities and Markets Authority. “Questions and Answers on MiFID II and MiFIR investor protection and intermediaries topics.” ESMA35-43-349, 2017.

- Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU.

- Commission Delegated Regulation (EU) 2017/565 of 25 April 2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council as regards organisational requirements and operating conditions for investment firms and defined terms for the purposes of that Directive.

- Hogan Lovells. “Achieving best execution under MiFID II.” 2017.

- Dechert LLP. “MiFID II ▴ Best execution.” 2014.

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

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## Reflection

The transition from MiFID I to MiFID II was a regulatory event and a structural re-architecting of a firm’s duty to its clients. The knowledge gained through understanding these differences provides a lens through which to examine your own operational framework. Consider the systems you have in place for data capture, analysis, and decision-making. Are they merely fulfilling a compliance checklist, or are they integrated into a dynamic feedback loop that genuinely enhances execution quality?

The principles embedded in MiFID II ▴ transparency, accountability, and data-driven proof ▴ are components of a larger system of institutional intelligence. The ultimate strategic potential lies in viewing these obligations as a catalyst for building a superior operational architecture, one that creates a durable competitive advantage through demonstrable and consistent excellence in execution.

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## Glossary

<a href="https://prime.greeks.live/area/financial-instruments/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A central mechanism of an Institutional Grade Crypto Derivatives OS with dynamically rotating arms. These translucent blue panels symbolize High-Fidelity Execution via an RFQ Protocol, facilitating Price Discovery and Liquidity Aggregation for Digital Asset Derivatives within complex Market Microstructure](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-rfq-engine-for-digital-asset-derivatives-best-execution.jpg)

## Financial Instruments

Meaning ▴ Financial Instruments, within the crypto ecosystem, refer to any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity, where the underlying value is derived from or denominated in cryptocurrencies. </a><a href="https://prime.greeks.live/area/investor-protection/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Three sensor-like components flank a central, illuminated teal lens, reflecting an advanced RFQ protocol system. This represents an institutional digital asset derivatives platform's intelligence layer for precise price discovery, high-fidelity execution, and managing multi-leg spread strategies, optimizing market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-for-optimal-execution.jpg)

## Investor Protection

Meaning ▴ Investor Protection, within the evolving crypto ecosystem, encompasses the aggregate of regulations, technological safeguards, and ethical standards designed to shield individuals and institutions from fraudulent activities, market manipulation, and operational failures inherent in digital asset markets. </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">
![Intricate metallic mechanisms portray a proprietary matching engine or execution management system. Its robust structure enables algorithmic trading and high-fidelity execution for institutional digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-market-microstructure.jpg)

## Best Execution

Meaning ▴ Best Execution, in the context of cryptocurrency trading, signifies the obligation for a trading firm or platform to take all reasonable steps to obtain the most favorable terms for its clients' orders, considering a holistic range of factors beyond merely the quoted price. </a><a href="https://prime.greeks.live/area/mifid-ii/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![An institutional grade system component, featuring a reflective intelligence layer lens, symbolizes high-fidelity execution and market microstructure insight. This enables price discovery for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-precision-rfq-execution-system-interface.jpg)

## Mifid Ii

Meaning ▴ MiFID II (Markets in Financial Instruments Directive II) is a comprehensive regulatory framework implemented by the European Union to enhance the efficiency, transparency, and integrity of financial markets. </a><a href="https://prime.greeks.live/question/what-are-the-operational-consequences-of-misreporting-under-mifid-ii-versus-a-reporting-failure-under-emir/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![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)

## Under Mifid

A MiFID II misreport corrupts market surveillance data; an EMIR failure hides systemic risk, creating distinct operational and reputational threats. </a><a href="https://prime.greeks.live/area/mifid-i/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
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## Mifid I

Meaning ▴ MiFID I, or the Markets in Financial Instruments Directive I, represents a European Union legislative framework established to enhance transparency, efficiency, and competition within financial markets. </a><a href="https://prime.greeks.live/area/all-sufficient-steps/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A slender metallic probe extends between two curved surfaces. This abstractly illustrates high-fidelity execution for institutional digital asset derivatives, driving price discovery within market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/precision-instrument-navigating-institutional-digital-asset-derivatives-rfq-protocols-for-optimal-price-discovery-and-high-fidelity-execution.jpg)

## All Sufficient Steps

Meaning ▴ Within the highly regulated and technologically evolving landscape of crypto institutional options trading and RFQ systems, "All Sufficient Steps" denotes the comprehensive, demonstrable actions undertaken by a market participant or platform to fulfill regulatory obligations, contractual agreements, or best execution mandates. </a><a href="https://prime.greeks.live/area/execution-quality/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A 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)

## Execution Quality

Meaning ▴ Execution quality, within the framework of crypto investing and institutional options trading, refers to the overall effectiveness and favorability of how a trade order is filled. </a><a href="https://prime.greeks.live/area/order-execution-policy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Illuminated conduits passing through a central, teal-hued processing unit abstractly depict an Institutional-Grade RFQ Protocol. This signifies High-Fidelity Execution of Digital Asset Derivatives, enabling Optimal Price Discovery and Aggregated Liquidity for Multi-Leg Spreads](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-high-fidelity-best-execution.jpg)

## Order Execution Policy

Meaning ▴ An Order Execution Policy is a formal, comprehensive document that outlines the precise procedures, criteria, and execution venues an investment firm will utilize to execute client orders, with the paramount objective of achieving the best possible outcome for its clients. </a><a href="https://prime.greeks.live/area/execution-venues/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![An Execution Management System module, with intelligence layer, integrates with a liquidity pool hub and RFQ protocol component. This signifies atomic settlement and high-fidelity execution within an institutional grade Prime RFQ, ensuring capital efficiency for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/08/prime-os-orchestrating-institutional-digital-asset-derivatives-rfq-protocols-for-optimal-execution.jpg)

## Execution Venues

Meaning ▴ Execution venues are the diverse platforms and systems where financial instruments, including cryptocurrencies, are traded and orders are matched. </a><a href="https://prime.greeks.live/area/regulatory-technical-standards/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![An abstract composition depicts a glowing green vector slicing through a segmented liquidity pool and principal's block. This visualizes high-fidelity execution and price discovery across market microstructure, optimizing RFQ protocols for institutional digital asset derivatives, minimizing slippage and latency](https://options.greeks.live/wp-content/uploads/2025/07/optimal-precise-digital-asset-derivative-rfq-execution-via-smart-protocols-for-institutional-trading.jpg)

## Regulatory Technical Standards

Meaning ▴ Regulatory Technical Standards (RTS), in the context of crypto financial markets, are granular, prescriptive rules and detailed specifications issued by regulatory authorities to implement high-level legislative acts concerning digital assets and related services. </a><a href="https://prime.greeks.live/area/rts-27/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A central metallic bar, representing an RFQ block trade, pivots through translucent geometric planes symbolizing dynamic liquidity pools and multi-leg spread strategies. This illustrates a Principal's operational framework for high-fidelity execution and atomic settlement within a sophisticated Crypto Derivatives OS, optimizing private quotation workflows](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-facilitating-high-fidelity-price-discovery-and-optimal-capital-efficiency-within-advanced-market-microstructure.jpg)

## Rts 27

Meaning ▴ RTS 27 refers to Regulatory Technical Standard 27, a reporting obligation under the European Union's MiFID II directive, requiring execution venues to publish detailed data on the quality of execution for various financial instruments. </a><a href="https://prime.greeks.live/area/investment-firms/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![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)

## Investment Firms

Meaning ▴ Investment Firms, in the context of crypto investing, RFQ crypto, and institutional options trading, denote specialized entities that engage in a broad spectrum of sophisticated financial activities, including asset management, brokerage services, proprietary trading, and advisory functions for institutional clients. </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, metallic mechanism symbolizes an advanced institutional trading system. The central sphere represents aggregated liquidity and precise price discovery](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-engine-for-optimal-price-discovery-and-best-execution.jpg)

## Rts 28

Meaning ▴ RTS 28, or Regulatory Technical Standard 28, is a specific regulation under the European Union's Markets in Financial Instruments Directive II (MiFID II) that mandates investment firms to publicly disclose detailed information regarding the quality of their order execution and the specific venues utilized for client trades. </a><a href="https://prime.greeks.live/area/compliance/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A dark blue sphere and teal-hued circular elements on a segmented surface, bisected by a diagonal line. This visualizes institutional block trade aggregation, algorithmic price discovery, and high-fidelity execution within a Principal's Prime RFQ, optimizing capital efficiency and mitigating counterparty risk for digital asset derivatives and multi-leg spreads](https://options.greeks.live/wp-content/uploads/2025/07/market-microstructure-driven-institutional-digital-asset-derivatives-rfq.jpg)

## Compliance

Meaning ▴ Compliance, within the crypto and institutional investing ecosystem, signifies the stringent adherence of digital asset systems, protocols, and operational practices to a complex framework of regulatory mandates, legal statutes, and internal policies. </a><a href="https://prime.greeks.live/area/total-cost-analysis/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A polished, abstract geometric form represents a dynamic RFQ Protocol for institutional-grade digital asset derivatives. A central liquidity pool is surrounded by opening market segments, revealing an emerging arm displaying high-fidelity execution data](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-institutional-digital-asset-derivatives-rfq-protocol-system.jpg)

## Total Cost Analysis

Meaning ▴ Total Cost Analysis is a comprehensive financial assessment that considers all direct and indirect costs associated with a particular asset, system, or process throughout its entire lifecycle. </a><a href="https://prime.greeks.live/area/execution-policy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Translucent spheres, embodying institutional counterparties, reveal complex internal algorithmic logic. Sharp lines signify high-fidelity execution and RFQ protocols, connecting these liquidity pools](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-optimal-execution-engine.jpg)

## Execution Policy

Meaning ▴ An Execution Policy, within the sophisticated architecture of crypto institutional options trading and smart trading systems, defines the precise set of rules, parameters, and algorithms governing how trade orders are submitted, routed, and filled across various trading venues. </a>

**Tags:** [Financial Instruments](https://options.greeks.live/area/financial-instruments/), [RTS 27](https://options.greeks.live/area/rts-27/), [All Sufficient Steps](https://options.greeks.live/area/all-sufficient-steps/), [Execution Venues](https://options.greeks.live/area/execution-venues/), [Best Execution](https://options.greeks.live/area/best-execution/), [Compliance](https://options.greeks.live/area/compliance/)	

## Discover More

- 
### [How Did MiFID II’s Best Execution Standard Change Fixed Income Trading?](https://options.greeks.live/question/how-did-mifid-iis-best-execution-standard-change-fixed-income-trading/)
![A polished, dark teal institutional-grade mechanism reveals an internal beige interface, precisely deploying a metallic, arrow-etched component. This signifies high-fidelity execution within an RFQ protocol, enabling atomic settlement and optimized price discovery for institutional digital asset derivatives and multi-leg spreads, ensuring minimal slippage and robust capital efficiency.](https://options.greeks.live/wp-content/uploads/2025/08/quantitative-finance-driven-rfq-workflow-for-best-execution-in-digital-assets.jpg)

MiFID II transformed fixed income best execution from a qualitative goal into a quantitative, data-driven, and auditable discipline.

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

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

- 
### [How Do MiFID II Regulations Specifically Influence the Responsibilities of a Best Execution Committee in Europe?](https://options.greeks.live/question/how-do-mifid-ii-regulations-specifically-influence-the-responsibilities-of-a-best-execution-committee-in-europe/)
![A sleek, conical precision instrument, with a vibrant mint-green tip and a robust grey base, represents the cutting-edge of institutional digital asset derivatives trading. Its sharp point signifies price discovery and best execution within complex market microstructure, powered by RFQ protocols for dark liquidity access and capital efficiency in atomic settlement.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-microstructure-price-discovery-optimization-prime-os-intelligence-layer.jpg)

MiFID II transforms the Best Execution Committee into a data-driven oversight body, mandating quantitative proof of optimal client outcomes.

- 
### [What Are the Primary Differences in Best Execution Obligations between MiFID I and MiFID II?](https://options.greeks.live/question/what-are-the-primary-differences-in-best-execution-obligations-between-mifid-i-and-mifid-ii/)
![Abstractly depicting an Institutional Grade Crypto Derivatives OS component. Its robust structure and metallic interface signify precise Market Microstructure for High-Fidelity Execution of RFQ Protocol and Block Trade orders. The angular teal plane represents a transparent Liquidity Pool driving Price Discovery and Atomic Settlement.](https://options.greeks.live/wp-content/uploads/2025/07/principals-integrated-crypto-derivatives-rfq-protocol-architecture.jpg)

MiFID II elevates best execution from a principle to a data-driven, verifiable obligation, demanding a more sophisticated operational architecture.

- 
### [What Are the Key Differences in Best Execution Obligations between the US and Europe?](https://options.greeks.live/question/what-are-the-key-differences-in-best-execution-obligations-between-the-us-and-europe/)
![Sleek metallic components with teal luminescence precisely intersect, symbolizing an institutional-grade Prime RFQ. This represents multi-leg spread execution for digital asset derivatives via RFQ protocols, ensuring high-fidelity execution, optimal price discovery, and capital efficiency.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-best-execution-system.jpg)

US best execution emphasizes a flexible, principles-based "reasonable diligence," while Europe's MiFID II mandates a prescriptive, data-driven "all sufficient steps" approach.

- 
### [How Does MiFID II Specifically Impact RFQ Best Execution Policies?](https://options.greeks.live/question/how-does-mifid-ii-specifically-impact-rfq-best-execution-policies/)
![Two sharp, teal, blade-like forms crossed, featuring circular inserts, resting on stacked, darker, elongated elements. This represents intersecting RFQ protocols for institutional digital asset derivatives, illustrating multi-leg spread construction and high-fidelity execution. The underlying layers signify aggregated liquidity pools and market microstructure dynamics, enabling price discovery and capital efficiency within a Prime RFQ framework.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-best-execution.jpg)

MiFID II mandates a shift to "all sufficient steps" for RFQ best execution, requiring data-driven policies and transparent reporting.

- 
### [How Does MiFID II Define Best Execution for Different Venue Types?](https://options.greeks.live/question/how-does-mifid-ii-define-best-execution-for-different-venue-types/)
![A luminous conical element projects from a multi-faceted transparent teal crystal, signifying RFQ protocol precision and price discovery. This embodies institutional grade digital asset derivatives high-fidelity execution, leveraging Prime RFQ for liquidity aggregation and atomic settlement.](https://options.greeks.live/wp-content/uploads/2025/07/precision-engineered-rfq-protocol-orchestration-for-institutional-digital-asset-derivatives-high-fidelity-execution.jpg)

MiFID II defines best execution as a data-driven process of taking all sufficient steps to optimize outcomes across a multi-venue system.

- 
### [How Do MiFID II Best Execution Requirements Specifically Impact RFQ Workflows?](https://options.greeks.live/question/how-do-mifid-ii-best-execution-requirements-specifically-impact-rfq-workflows/)
![A dual-toned cylindrical component features a central transparent aperture revealing intricate metallic wiring. This signifies a core RFQ processing unit for Digital Asset Derivatives, enabling rapid Price Discovery and High-Fidelity Execution. It embodies an advanced Prime RFQ component, optimizing Liquidity Pool access and Market Microstructure via Algorithmic Trading.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-core-best-execution-prime-os.jpg)

MiFID II transforms RFQ workflows from simple price-seeking inquiries into auditable, data-driven processes proving best execution.

- 
### [What Are the Key Differences between MiFID I and MiFID II Best Execution Requirements?](https://options.greeks.live/question/what-are-the-key-differences-between-mifid-i-and-mifid-ii-best-execution-requirements/)
![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)

MiFID II elevates best execution from a principle of diligence to a mandate for data-driven, provable, and transparently optimal outcomes.

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---

**Original URL:** https://options.greeks.live/question/what-are-the-key-differences-in-best-execution-obligations-between-mifid-i-and-mifid-ii/
