# What Are the Primary Metrics for Comparing RFQ and Lit Market Execution Quality? ▴ Question

**Published:** 2025-08-07
**Categories:** Question

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![Abstract geometric forms depict a sophisticated RFQ protocol engine. A central mechanism, representing price discovery and atomic settlement, integrates horizontal liquidity streams](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-engine-2.jpg)

![An abstract geometric composition visualizes a sophisticated market microstructure for institutional digital asset derivatives. A central liquidity aggregation hub facilitates RFQ protocols and high-fidelity execution of multi-leg spreads](https://options.greeks.live/wp-content/uploads/2025/07/optimized-rfq-execution-framework-for-digital-asset-derivatives-trading.jpg)

## Concept

![A precise, multi-layered disk embodies a dynamic Volatility Surface or deep Liquidity Pool for Digital Asset Derivatives. Dual metallic probes symbolize Algorithmic Trading and RFQ protocol inquiries, driving Price Discovery and High-Fidelity Execution of Multi-Leg Spreads within a Principal's operational framework](https://options.greeks.live/wp-content/uploads/2025/07/institutional-grade-rfq-protocol-mechanism-for-digital-asset-derivatives-price-discovery-and-high-fidelity-execution-via-prime-os.jpg)

## The Two Faces of Liquidity

An institutional trader’s primary challenge is not merely finding liquidity, but accessing it in a way that preserves the integrity of the trading intention. The market presents two fundamentally different paradigms for this access ▴ the continuous, anonymous auction of the [lit markets](https://prime.greeks.live/area/lit-markets/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) and the discrete, bilateral negotiation of a Request for Quote (RFQ) system. Understanding their structural differences is the foundation of any meaningful [execution quality](https://prime.greeks.live/area/execution-quality/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) analysis. A lit market is a system of open outcry, translated into the digital age.

It operates on a central limit order book (CLOB), where all participants can see the bids and offers, creating a transparent and continuous price discovery mechanism. Its strength lies in its accessibility and the constant stream of data it provides. The [RFQ](https://prime.greeks.live/area/rfq/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) protocol, conversely, operates as a series of private negotiations. Instead of displaying an intention to the entire market, a trader solicits quotes from a select group of liquidity providers.

This is a discreet process, designed to contain information and find a specific counterparty for a trade, often one of a significant size or complexity that would be disruptive to the [lit market](https://prime.greeks.live/area/lit-market/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). Comparing them requires a framework that can account for these divergent philosophies of interaction.

![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)

## Beyond the National Best Bid and Offer

The National Best Bid and Offer (NBBO) provides a public, consolidated quote for securities, forming the baseline for execution quality in lit markets. It is a vital reference point, yet for institutional purposes, it represents the starting line of analysis, not the finish. The true cost and quality of an execution are revealed in the layers of interaction that occur around this public benchmark. For a [lit market execution](https://prime.greeks.live/area/lit-market-execution/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), this involves measuring the [market impact](https://prime.greeks.live/area/market-impact/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) ▴ the degree to which the order itself moves the price ▴ and the slippage from the arrival price, the price at the moment the decision to trade was made.

For an RFQ, the analysis is more nuanced. The negotiation happens off-book, and the quality is judged against a different set of criteria ▴ the degree of [price improvement](https://prime.greeks.live/area/price-improvement/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) relative to the prevailing NBBO, the certainty of execution for the full size, and the minimization of [information leakage](https://prime.greeks.live/area/information-leakage/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) that could lead to adverse price movements before, during, and after the trade. A holistic view must incorporate both the visible costs of lit market interaction and the less visible, but equally critical, strategic advantages of a private negotiation.

> Comparing RFQ and lit market execution quality involves evaluating the trade-off between the transparent price discovery of lit markets and the information containment of RFQ protocols.

![A dark central hub with three reflective, translucent blades extending. This represents a Principal's operational framework for digital asset derivatives, processing aggregated liquidity and multi-leg spread inquiries](https://options.greeks.live/wp-content/uploads/2025/07/institutional-rfq-protocol-engine-for-high-fidelity-digital-asset-derivatives.jpg)

## The Information Signaling Dilemma

Every order sent to a market is a signal. A large order placed on a lit exchange signals a significant trading interest, which can be detected by other participants who may trade ahead of the order, causing the price to move against the initiator. This phenomenon, known as information leakage or signaling risk, is a primary driver of implicit trading costs. The RFQ mechanism is designed explicitly to mitigate this risk.

By revealing the trade intention to a limited, competitive set of market makers, the trader can source liquidity without broadcasting their strategy to the wider market. This containment of information is a central pillar of its value proposition, particularly for block trades or complex, multi-leg options strategies. Any comparative metric framework must, therefore, assign a quantitative value to this risk mitigation. This involves analyzing [post-trade price reversion](https://prime.greeks.live/area/post-trade-price-reversion/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) ▴ the tendency of a price to return to its previous level after a large trade, which can indicate that the initial price movement was caused by the trade’s impact rather than new fundamental information. A successful RFQ execution should exhibit minimal [post-trade reversion](https://prime.greeks.live/area/post-trade-reversion/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), suggesting the price was “fair” and the information was well-contained.

![A precisely balanced transparent sphere, representing an atomic settlement or digital asset derivative, rests on a blue cross-structure symbolizing a robust RFQ protocol or execution management system. This setup is anchored to a textured, curved surface, depicting underlying market microstructure or institutional-grade infrastructure, enabling high-fidelity execution, optimized price discovery, and capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-engineered-rfq-block-trade-execution-for-digital-asset-derivatives.jpg)

![A sleek, white, semi-spherical Principal's operational framework opens to precise internal FIX Protocol components. A luminous, reflective blue sphere embodies an institutional-grade digital asset derivative, symbolizing optimal price discovery and a robust liquidity pool](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-high-fidelity-execution-5.jpg)

## Strategy

![A dynamic central nexus of concentric rings visualizes Prime RFQ aggregation for digital asset derivatives. Four intersecting light beams delineate distinct liquidity pools and execution venues, emphasizing high-fidelity execution and precise price discovery](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-rfq-hub-for-digital-asset-derivatives-execution.jpg)

## A Unified Framework for Divergent Paths

To strategically compare RFQ and lit market executions, an institution must develop a unified [Transaction Cost Analysis](https://prime.greeks.live/area/transaction-cost-analysis/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (TCA) framework that can normalize for their inherent differences. This framework should be built around three core pillars ▴ Price, Certainty, and Impact. Each pillar contains specific metrics that, when viewed together, provide a comprehensive picture of execution quality. The goal is to move beyond a simple comparison of execution prices and to quantify the strategic trade-offs between the two methods.

This requires a disciplined approach to data collection and the use of consistent benchmarks. For example, the “[arrival price](https://prime.greeks.live/area/arrival-price/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite)” ▴ the market price at the moment the order is generated ▴ should be used as a consistent benchmark for both types of executions to calculate [implementation shortfall](https://prime.greeks.live/area/implementation-shortfall/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). By applying the same fundamental benchmarks to both, it becomes possible to make a more objective comparison of their performance, even though the paths to execution are vastly different.

![Interconnected, sharp-edged geometric prisms on a dark surface reflect complex light. This embodies the intricate market microstructure of institutional digital asset derivatives, illustrating RFQ protocol aggregation for block trade execution, price discovery, and high-fidelity execution within a Principal's operational framework enabling optimal liquidity](https://options.greeks.live/wp-content/uploads/2025/07/precision-geometric-prisms-reflecting-institutional-digital-asset-derivatives-rfq-price-discovery-and-optimized-execution-market-microstructure.jpg)

## The Price Pillar Quantifying the Execution Edge

The most direct measure of execution quality is price. However, the way price advantage is measured differs significantly between RFQ and lit markets. For lit markets, the key metrics revolve around the prevailing market prices at the time of execution. For RFQ, the focus is on the degree of improvement over those public benchmarks.

- **Price Improvement (PI)** ▴ For an RFQ, PI is the amount by which the [execution price](https://prime.greeks.live/area/execution-price/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) is better than the [NBBO](https://prime.greeks.live/area/nbbo/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) at the time of the trade. A buy order executed below the national best offer, or a sell order executed above the national best bid, generates price improvement. For a lit market order, PI is less common for marketable orders but can be achieved by passive orders that execute within the spread.

- **Effective Spread** ▴ This metric captures the true cost of crossing the spread. It is calculated as twice the difference between the execution price and the midpoint of the NBBO for a buy order (or twice the difference between the midpoint and the execution price for a sell order). A lower effective spread indicates a better execution. This can be directly compared between an RFQ fill and a lit market execution.

- **Implementation Shortfall** ▴ This is the most comprehensive price metric. It measures the total cost of an execution relative to the “paper” portfolio at the time the decision to trade was made. It includes not only the explicit costs (commissions) but also the implicit costs like slippage from the arrival price and market impact. Calculating this consistently for both RFQ and lit executions provides a powerful comparison of their all-in cost.

![Reflective and translucent discs overlap, symbolizing an RFQ protocol bridging market microstructure with institutional digital asset derivatives. This depicts seamless price discovery and high-fidelity execution, accessing latent liquidity for optimal atomic settlement within a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-digital-asset-derivatives-rfq-execution-best-price-discovery.jpg)

## The Certainty Pillar Measuring the Guarantee of Execution

For large or complex trades, the certainty of execution can be as important as the price. This is where the structural differences between RFQ and lit markets become most apparent, and where metrics must capture the value of a guaranteed fill.

- **[Fill Rate](https://prime.greeks.live/area/fill-rate/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite)** ▴ For an RFQ, the fill rate is typically 100% for the requested size, as the liquidity provider agrees to a specific quantity at a specific price. For a large order worked on a lit market, the fill rate may be less than 100% if the order is not fully executed within the desired time frame or price limits. Comparing the fill rates, especially under volatile market conditions, highlights the value of the RFQ’s execution certainty.

- **Execution Speed** ▴ While lit markets can offer near-instantaneous execution for small, marketable orders, the execution of a large block order can take a considerable amount of time as it is “worked” to minimize market impact. An RFQ, once the negotiation is complete, provides a very fast execution for the full size. The time from order inception to full execution is a critical metric to compare.

![A luminous digital market microstructure diagram depicts intersecting high-fidelity execution paths over a transparent liquidity pool. A central RFQ engine processes aggregated inquiries for institutional digital asset derivatives, optimizing price discovery and capital efficiency within a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-high-fidelity-execution-principal-operational-framework-price-discovery.jpg)

## The Impact Pillar Gauging the Unseen Costs

The most sophisticated element of execution quality analysis is the measurement of market impact and information leakage. These are the hidden costs that can erode performance, and they are a key differentiator between RFQ and lit market executions.

> A successful execution quality framework quantifies not only the final price but also the certainty of the fill and the containment of strategic information.

The primary metric here is post-trade [price reversion](https://prime.greeks.live/area/price-reversion/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). After a large buy order on a lit market, the price may be observed to fall back towards its pre-trade level. This suggests that the buying pressure was temporary and primarily caused by the order itself, and the initiator of the trade paid a premium due to their own market impact. A well-priced [RFQ execution](https://prime.greeks.live/area/rfq-execution/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), by contrast, should be followed by less price reversion, indicating that the trade occurred at a price that was considered fair by both parties and did not create a significant, temporary imbalance in the market.

Analyzing price movements in the seconds and minutes following an execution is critical to quantifying this effect. A lower post-trade reversion for an RFQ execution is a strong indicator of superior quality, as it suggests that the strategic benefit of [information containment](https://prime.greeks.live/area/information-containment/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) was successfully realized.

### Strategic Comparison of Execution Venues

| Metric Category | Key Metric | Interpretation in Lit Markets | Interpretation in RFQ |
| --- | --- | --- | --- |
| Price | Price Improvement (PI) | Often minimal for marketable orders; achieved by passive orders capturing the spread. | A primary goal; measured as execution price better than the NBBO. High PI is a sign of competitive quoting. |
| Certainty | Fill Rate | Can be uncertain for large orders, which may only be partially filled or require significant time to execute. | Typically 100% for the agreed-upon size, providing a high degree of execution certainty. |
| Impact | Post-Trade Price Reversion | Higher reversion suggests significant market impact and information leakage, indicating the trader paid a premium. | Lower reversion suggests a “fair” price was achieved with minimal market disruption, indicating successful information containment. |

![A metallic, disc-centric interface, likely a Crypto Derivatives OS, signifies high-fidelity execution for institutional-grade digital asset derivatives. Its grid implies algorithmic trading and price discovery](https://options.greeks.live/wp-content/uploads/2025/07/rfq-block-price-algo-fidelity-alpha-capital-institutional-digital.jpg)

![A fractured, polished disc with a central, sharp conical element symbolizes fragmented digital asset liquidity. This Principal RFQ engine ensures high-fidelity execution, precise price discovery, and atomic settlement within complex market microstructure, optimizing capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/principal-rfq-engine-unifying-fragmented-digital-asset-derivatives-liquidity-for-best-execution.jpg)

## Execution

![A central, intricate blue mechanism, evocative of an Execution Management System EMS or Prime RFQ, embodies algorithmic trading. Transparent rings signify dynamic liquidity pools and price discovery for institutional digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/precision-engineered-institutional-digital-asset-derivatives-framework-driving-high-fidelity-rfq-execution-and-optimized-market-microstructure-for-capital-efficiency.jpg)

## Constructing the Comparative TCA Model

A robust, data-driven comparison of RFQ and lit market execution quality requires the construction of a detailed Transaction Cost Analysis (TCA) model. This model serves as the operational core of the evaluation process, translating theoretical metrics into actionable intelligence. The first step is to establish a consistent data collection methodology for every trade, regardless of execution venue. This includes timestamping the order at key stages ▴ order creation (the “decision time”), order routing, and final execution.

The model must also capture the state of the market at these key times, including the NBBO, the depth of the order book, and short-term volatility measures. With this data foundation, the model can then apply a series of calculations to generate the core comparative metrics. The objective is to create a side-by-side ledger for each trade, showing not just the execution price, but a full suite of implicit cost metrics that reveal the true performance of the chosen execution path.

![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)

## A Case Study in Execution Path Analysis

Consider a portfolio manager needing to sell a block of 100,000 shares of a moderately liquid stock. The arrival price (the mid-point of the NBBO at the decision time) is $50.00. The manager must choose between working the order on a lit exchange using a VWAP algorithm over one hour, or using an RFQ protocol to solicit quotes from five leading market makers. A post-trade analysis using a comparative [TCA model](https://prime.greeks.live/area/tca-model/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) would provide the necessary data to make a quantitative judgment on the chosen path and inform future decisions.

If the manager chose the lit market path, the order might be executed in 20 different “child” orders over the hour. The TCA model would analyze each fill, comparing its execution price to the arrival price and the NBBO at the time of the fill. The model would also track the stock’s price throughout the hour, calculating the market impact as the difference between the average execution price and the volume-weighted average price (VWAP) of the stock during that period, had the order not been present (a figure that must be estimated using a market impact model). The total implementation shortfall would be the sum of all these implicit costs.

If the manager chose the RFQ path, they might receive five quotes and accept the best one, selling the entire 100,000-share block in a single transaction at a price of $49.98. On the surface, this looks worse than the $50.00 arrival price. However, the TCA model would reveal a more complete picture. The implementation shortfall is a simple calculation ▴ ($50.00 – $49.98) 100,000 shares = $2,000.

There is no complex market impact calculation because the trade occurred in a single print. The key analysis then becomes the “what-if” scenario ▴ what would the market impact have been if that 100,000-share order had been sent to the lit market? If a market impact model predicted that selling that volume on the lit exchange would have pushed the average execution price down to $49.95, then the RFQ execution at $49.98 actually saved the fund $3,000 in implicit costs. The following table provides a detailed quantitative comparison of these two potential execution paths.

### Quantitative Comparison of Execution Paths ▴ 100,000 Share Sell Order

| Metric | Formula/Definition | Lit Market (VWAP Algo) | RFQ Execution | Analysis |
| --- | --- | --- | --- | --- |
| Arrival Price | Market mid-price at decision time | $50.00 | $50.00 | The baseline for both execution paths. |
| Average Execution Price | Volume-weighted average of all fills | $49.95 | $49.98 | The RFQ execution achieved a higher average price. |
| Implementation Shortfall | (Arrival Price – Avg. Exec. Price) Size | ($50.00 – $49.95) 100,000 = $5,000 | ($50.00 – $49.98) 100,000 = $2,000 | The RFQ path resulted in a significantly lower all-in cost. |
| Market Impact (Estimated) | Slippage attributable to the order’s presence | $0.05 per share | $0.02 per share (negotiated) | The primary source of the cost difference; the lit market execution signaled the trader’s intent, leading to greater adverse price movement. |
| Fill Certainty | Percentage of order executed | 100% (but over 1 hour) | 100% (instantaneous upon acceptance) | The RFQ provided immediate certainty, reducing exposure to adverse market moves during the execution window. |
| Post-Trade Reversion (1 min) | Price movement after final execution | Price recovers to $49.97 | Price remains stable at $49.98 | The price reversion in the lit market case confirms that the $49.95 price was artificially low due to the order’s impact. |

![Intersecting concrete structures symbolize the robust Market Microstructure underpinning Institutional Grade Digital Asset Derivatives. Dynamic spheres represent Liquidity Pools and Implied Volatility](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-framework-optimizing-rfq-execution-and-liquidity-for-principal-trading.jpg)

## Operationalizing the Metrics for Continuous Improvement

The true value of this detailed TCA model is not in analyzing a single trade, but in its continuous application across all institutional flow. By aggregating this data over time, traders and portfolio managers can move from anecdotal evidence to a quantitative understanding of which execution path is optimal under different market conditions, for different asset classes, and for different trade sizes. This data-driven feedback loop is the hallmark of a sophisticated trading operation.

It allows for the dynamic routing of orders to the venue that is most likely to provide the [best execution](https://prime.greeks.live/area/best-execution/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) quality, based on a deep, empirical understanding of the trade-offs involved. This is the essence of turning execution into a source of competitive advantage.

> True execution quality is not found in a single metric, but in a holistic analysis of price, certainty, and the unquantified value of contained information.

- **Data Aggregation** ▴ The system must automatically capture and store all relevant data points for every order, including timestamps, market conditions, and execution details from both lit and RFQ venues.

- **Benchmarking** ▴ All executions should be benchmarked against a consistent set of prices, primarily the arrival price, to calculate implementation shortfall. Secondary benchmarks like VWAP or the NBBO at execution time can provide additional context.

- **Attribution Analysis** ▴ The model should attempt to attribute costs to different factors. For a lit market execution, this means separating the cost of crossing the spread from the cost of market impact. For an RFQ, it means quantifying the price improvement relative to the NBBO and comparing the all-in cost to a modeled lit market execution.

- **Feedback Loop** ▴ The results of the TCA should be regularly reviewed by traders and integrated into pre-trade decision-making tools. An execution algorithm or smart order router can be programmed to favor the venue that has historically provided the best risk-adjusted performance for a given type of order.

![A transparent glass bar, representing high-fidelity execution and precise RFQ protocols, extends over a white sphere symbolizing a deep liquidity pool for institutional digital asset derivatives. A small glass bead signifies atomic settlement within the granular market microstructure, supported by robust Prime RFQ infrastructure ensuring optimal price discovery and minimal slippage](https://options.greeks.live/wp-content/uploads/2025/07/institutional-grade-digital-asset-derivatives-rfq-execution-prime-os-intelligence-layer-facilitating-optimal-price-discovery-and-best-execution.jpg)

## References

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

- O’Hara, Maureen. “Market Microstructure Theory.” Blackwell Publishing, 1995.

- Johnson, Don. “Algorithmic Trading and DMA ▴ An introduction to direct access trading strategies.” 4Myeloma Press, 2010.

- Kissell, Robert. “The Science of Algorithmic Trading and Portfolio Management.” Academic Press, 2013.

- Lehalle, Charles-Albert, and Sophie Laruelle. “Market Microstructure in Practice.” World Scientific Publishing, 2013.

- SEC Office of the Chief Economist. “Economic Analysis of Retail Execution Quality.” U.S. Securities and Exchange Commission, 2023.

- Tradeweb Markets. “Measuring Execution Quality for Portfolio Trading.” Tradeweb, 2021.

- Ernst, Thomas, and Chester Spatt. “Competition and Best Execution in Retail Brokerage.” Working Paper, 2023.

![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)

## Reflection

![A central Principal OS hub with four radiating pathways illustrates high-fidelity execution across diverse institutional digital asset derivatives liquidity pools. Glowing lines signify low latency RFQ protocol routing for optimal price discovery, navigating market microstructure for multi-leg spread strategies](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-intelligence.jpg)

## From Measurement to Systemic Advantage

The framework for comparing RFQ and lit market execution quality transcends a mere accounting exercise. It is the diagnostic core of a larger operational system designed to protect and enhance portfolio value. Each metric, from price improvement to post-trade reversion, is a sensor providing feedback on the efficiency of the interaction between the institution’s trading intent and the market’s complex structure. Viewing execution through this systemic lens shifts the objective from simply minimizing cost on a trade-by-trade basis to building a durable, long-term advantage.

The data gathered does not just evaluate past performance; it informs the design of the future trading process. It allows for the calibration of algorithms, the selection of liquidity partners, and the development of an institutional intuition for when the transparency of the lit market is a tool, and when the discretion of a bilateral negotiation is a shield. Ultimately, the mastery of these metrics provides the ability to choose the right tool for the right task, transforming the act of execution from a tactical necessity into a strategic discipline.

![Intersecting muted geometric planes, with a central glossy blue sphere. This abstract visualizes market microstructure for institutional digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-microstructure-5.jpg)

## Glossary

<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 precision-engineered blue mechanism, symbolizing a high-fidelity execution engine, emerges from a rounded, light-colored liquidity pool component, encased within a sleek teal institutional-grade shell. This represents a Principal's operational framework for digital asset derivatives, demonstrating algorithmic trading logic and smart order routing for block trades via RFQ protocols, ensuring atomic settlement](https://options.greeks.live/wp-content/uploads/2025/07/institutional-crypto-derivatives-os-core-algorithmic-execution-engine.jpg)

## Execution 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/lit-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)

## Lit Markets

Meaning ▴ Lit Markets, in the plural, denote a collective of trading venues in the crypto landscape where full pre-trade transparency is mandated, ensuring that all executable bids and offers, along with their respective volumes, are openly displayed to all market participants. </a><a href="https://prime.greeks.live/area/rfq/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A blue speckled marble, symbolizing a precise block trade, rests centrally on a translucent bar, representing a robust RFQ protocol. This structured geometric arrangement illustrates complex market microstructure, enabling high-fidelity execution, optimal price discovery, and efficient liquidity aggregation within a principal's operational framework for institutional digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/precision-institutional-rfq-execution-framework-optimizing-digital-asset-derivatives-liquidity-aggregation-across-complex-market-microstructure.jpg)

## Rfq

Meaning ▴ A Request for Quote (RFQ), in the domain of institutional crypto trading, is a structured communication protocol enabling a prospective buyer or seller to solicit firm, executable price proposals for a specific quantity of a digital asset or derivative from one or more liquidity providers. </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 sleek, illuminated object, symbolizing an advanced RFQ protocol or Execution Management System, precisely intersects two broad surfaces representing liquidity pools within market microstructure. Its glowing line indicates high-fidelity execution and atomic settlement of digital asset derivatives, ensuring best execution and capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/principals-rfq-protocol-high-fidelity-execution-digital-asset-derivatives-market-microstructure-price-discovery-alpha-generation.jpg)

## Lit Market

Meaning ▴ A Lit Market, within the crypto ecosystem, represents a trading venue where pre-trade transparency is unequivocally provided, meaning bid and offer prices, along with their associated sizes, are publicly displayed to all participants before execution. </a><a href="https://prime.greeks.live/area/lit-market-execution/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Intersecting digital architecture with glowing conduits symbolizes Principal's operational framework. An RFQ engine ensures high-fidelity execution of Institutional Digital Asset Derivatives, facilitating block trades, multi-leg spreads](https://options.greeks.live/wp-content/uploads/2025/07/principal-digital-asset-derivatives-rfq-engine-high-fidelity-execution.jpg)

## Lit Market Execution

Meaning ▴ Lit Market Execution refers to the precise process of executing trades on transparent trading venues where pre-trade bid and offer prices, alongside corresponding liquidity, are openly displayed within an accessible order book. </a><a href="https://prime.greeks.live/area/market-impact/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Precision metallic bars intersect above a dark circuit board, symbolizing RFQ protocols driving high-fidelity execution within market microstructure. This represents atomic settlement for institutional digital asset derivatives, enabling price discovery and capital efficiency](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-protocol-execution-precision-systemic-framework.jpg)

## Market Impact

Meaning ▴ Market impact, in the context of crypto investing and institutional options trading, quantifies the adverse price movement caused by an investor's own trade execution. </a><a href="https://prime.greeks.live/area/information-leakage/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Two semi-transparent, curved elements, one blueish, one greenish, are centrally connected, symbolizing dynamic institutional RFQ protocols. This configuration suggests aggregated liquidity pools and multi-leg spread constructions](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-price-discovery-engine.jpg)

## Information Leakage

Meaning ▴ Information leakage, in the realm of crypto investing and institutional options trading, refers to the inadvertent or intentional disclosure of sensitive trading intent or order details to other market participants before or during trade execution. </a><a href="https://prime.greeks.live/area/price-improvement/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Two dark, circular, precision-engineered components, stacked and reflecting, symbolize a Principal's Operational Framework. This layered architecture facilitates High-Fidelity Execution for Block Trades via RFQ Protocols, ensuring Atomic Settlement and Capital Efficiency within Market Microstructure for Digital Asset Derivatives](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-prime-os-execution-protocol.jpg)

## Price Improvement

Meaning ▴ Price Improvement, within the context of institutional crypto trading and Request for Quote (RFQ) systems, refers to the execution of an order at a price more favorable than the prevailing National Best Bid and Offer (NBBO) or the initially quoted price. </a><a href="https://prime.greeks.live/area/post-trade-price-reversion/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Sleek, dark grey mechanism, pivoted centrally, embodies an RFQ protocol engine for institutional digital asset derivatives. Diagonally intersecting planes of dark, beige, teal symbolize diverse liquidity pools and complex market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-engine-powering-high-fidelity-execution-for-multi-leg-spreads-portfolio-margin-and-atomic-settlement-via-prime-os-for-block-trades.jpg)

## Post-Trade Price Reversion

Meaning ▴ Post-Trade Price Reversion describes the tendency for the price of an asset to return towards its pre-trade level shortly after a large block trade or significant market order has been executed. </a><a href="https://prime.greeks.live/area/post-trade-reversion/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A central star-like form with sharp, metallic spikes intersects four teal planes, on black. This signifies an RFQ Protocol's precise Price Discovery and Liquidity Aggregation, enabling Algorithmic Execution for Multi-Leg Spread strategies, mitigating Counterparty Risk, and optimizing Capital Efficiency for institutional Digital Asset Derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-price-discovery-and-execution.jpg)

## Post-Trade Reversion

Meaning ▴ Post-Trade Reversion in crypto markets describes the observable phenomenon where the price of a digital asset, immediately following the execution of a trade, tends to revert towards its pre-trade level. </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">
![Precision-engineered abstract components depict institutional digital asset derivatives trading. A central sphere, symbolizing core asset price discovery, supports intersecting elements representing multi-leg spreads and aggregated inquiry](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-microstructure-optimization.jpg)

## Transaction Cost Analysis

Meaning ▴ Transaction Cost Analysis (TCA), in the context of cryptocurrency trading, is the systematic process of quantifying and evaluating all explicit and implicit costs incurred during the execution of digital asset trades. </a><a href="https://prime.greeks.live/area/implementation-shortfall/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![An intricate, high-precision mechanism symbolizes an Institutional Digital Asset Derivatives RFQ protocol. Its sleek off-white casing protects the core market microstructure, while the teal-edged component signifies high-fidelity execution and optimal price discovery](https://options.greeks.live/wp-content/uploads/2025/07/precision-engineered-institutional-digital-asset-derivatives-rfq-protocol-high-fidelity-market-microstructure-optimization.jpg)

## Implementation Shortfall

Meaning ▴ Implementation Shortfall is a critical transaction cost metric in crypto investing, representing the difference between the theoretical price at which an investment decision was made and the actual average price achieved for the executed trade. </a><a href="https://prime.greeks.live/area/arrival-price/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A glossy, segmented sphere with a luminous blue 'X' core represents a Principal's Prime RFQ. It highlights multi-dealer RFQ protocols, high-fidelity execution, and atomic settlement for institutional digital asset derivatives, signifying unified liquidity pools, market microstructure, and capital efficiency](https://options.greeks.live/wp-content/uploads/2025/08/prime-os-core-for-best-rfq-digital-asset-derivatives-institutional-trade-flow.jpg)

## Arrival Price

Meaning ▴ Arrival Price denotes the market price of a cryptocurrency or crypto derivative at the precise moment an institutional trading order is initiated within a firm's order management system, serving as a critical benchmark for evaluating subsequent trade execution performance. </a><a href="https://prime.greeks.live/area/execution-price/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, pointed object, merging light and dark modular components, embodies advanced market microstructure for digital asset derivatives. Its precise form represents high-fidelity execution, price discovery via RFQ protocols, emphasizing capital efficiency, institutional grade alpha generation](https://options.greeks.live/wp-content/uploads/2025/07/institutional-grade-digital-asset-rfq-execution-system-microstructure.jpg)

## Execution Price

Meaning ▴ Execution Price refers to the definitive price at which a trade, whether involving a spot cryptocurrency or a derivative contract, is actually completed and settled on a trading venue. </a><a href="https://prime.greeks.live/area/nbbo/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Abstractly depicting an institutional digital asset derivatives trading system. Intersecting beams symbolize cross-asset strategies and high-fidelity execution pathways, integrating a central, translucent disc representing deep liquidity aggregation](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-ecosystem-unifying-rfq-protocols-for-high-fidelity-execution-and-deep-liquidity-aggregation-across-multi-leg-spreads.jpg)

## Nbbo

Meaning ▴ NBBO, or National Best Bid and Offer, represents the highest bid price and the lowest offer price available across all competing public exchanges for a given security. </a><a href="https://prime.greeks.live/area/fill-rate/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Abstract spheres and a sharp disc depict an Institutional Digital Asset Derivatives ecosystem. A central Principal's Operational Framework interacts with a Liquidity Pool via RFQ Protocol for High-Fidelity Execution](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-framework.jpg)

## Fill Rate

Meaning ▴ Fill Rate, within the operational metrics of crypto trading systems and RFQ protocols, quantifies the proportion of an order's total requested quantity that is successfully executed. </a><a href="https://prime.greeks.live/area/price-reversion/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Abstract geometric design illustrating a central RFQ aggregation hub for institutional digital asset derivatives. Radiating lines symbolize high-fidelity execution via smart order routing across dark pools](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-high-fidelity-execution-architecture.jpg)

## Price Reversion

Meaning ▴ Price Reversion, within the sophisticated framework of crypto investing and smart trading, describes the observed tendency of a cryptocurrency's price, following a significant deviation from its historical average or an established equilibrium level, to gravitate back towards that mean over a subsequent period. </a><a href="https://prime.greeks.live/area/rfq-execution/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Abstract geometric forms, symbolizing bilateral quotation and multi-leg spread components, precisely interact with robust institutional-grade infrastructure. This represents a Crypto Derivatives OS facilitating high-fidelity execution via an RFQ workflow, optimizing capital efficiency and price discovery](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-engine-infrastructure.jpg)

## Rfq Execution

Meaning ▴ RFQ Execution, within the specialized domain of institutional crypto options trading and smart trading, refers to the precise process of successfully completing a Request for Quote (RFQ) transaction, where an initiator receives, evaluates, and accepts a firm, executable price from a liquidity provider. </a><a href="https://prime.greeks.live/area/information-containment/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Abstract geometric structure with sharp angles and translucent planes, symbolizing institutional digital asset derivatives market microstructure. The central point signifies a core RFQ protocol engine, enabling precise price discovery and liquidity aggregation for multi-leg options strategies, crucial for high-fidelity execution and capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/principals-operational-framework-optimizing-institutional-digital-asset-derivatives-rfq-protocol-execution-for-alpha-generation.jpg)

## Information Containment

Meaning ▴ Information Containment, within the architectural design of crypto trading systems and Request for Quote (RFQ) platforms, refers to the practice of restricting the dissemination or access to sensitive data, such as order flow, proprietary trading strategies, or unconfirmed institutional trade details, to authorized entities only. </a><a href="https://prime.greeks.live/area/tca-model/?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)

## Tca Model

Meaning ▴ A TCA Model, or Transaction Cost Analysis Model, is a quantitative framework designed to measure and attribute the explicit and implicit costs associated with executing financial trades. </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">
![Abstract layers and metallic components depict institutional digital asset derivatives market microstructure. They symbolize multi-leg spread construction, robust FIX Protocol for high-fidelity execution, and private quotation](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-digital-asset-derivatives-rfq-protocol-high-fidelity-execution.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>

**Tags:** [Execution Price](https://options.greeks.live/area/execution-price/), [Lit Market Execution](https://options.greeks.live/area/lit-market-execution/), [NBBO](https://options.greeks.live/area/nbbo/), [Fill Rate](https://options.greeks.live/area/fill-rate/), [RFQ Execution](https://options.greeks.live/area/rfq-execution/), [Information Leakage](https://options.greeks.live/area/information-leakage/)	

## Discover More

- 
### [How Does the Use of Dark Pools Complement Algorithmic Execution Strategies in Lit Markets?](https://options.greeks.live/question/how-does-the-use-of-dark-pools-complement-algorithmic-execution-strategies-in-lit-markets/)
![An abstract composition of interlocking, precisely engineered metallic plates represents a sophisticated institutional trading infrastructure. Visible perforations within a central block symbolize optimized data conduits for high-fidelity execution and capital efficiency. This visual metaphor highlights seamless interoperability, robust Prime RFQ architecture, and intelligent routing for digital asset derivatives.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-multi-leg-execution-layer.jpg)

Dark pools provide an opaque execution environment that, when navigated by intelligent algorithms, minimizes the information leakage and market impact inherent in lit markets.

- 
### [What Are the Primary Differences in Measuring Best Execution for RFQs versus Lit Order Books?](https://options.greeks.live/question/what-are-the-primary-differences-in-measuring-best-execution-for-rfqs-versus-lit-order-books/)
![A polished, light surface interfaces with a darker, contoured form on black. This signifies the RFQ protocol for institutional digital asset derivatives, embodying price discovery and high-fidelity execution. It represents dark liquidity aggregation for block trades, optimizing capital efficiency and atomic settlement within the Prime RFQ.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-interface.jpg)

Best execution measurement contrasts benchmarking against public, continuous data (Lit) with auditing private, discrete negotiations (RFQ).

- 
### [What Are the Primary Tca Benchmarks for Comparing Rfq and Clob Execution Quality?](https://options.greeks.live/question/what-are-the-primary-tca-benchmarks-for-comparing-rfq-and-clob-execution-quality/)
![A precise, multi-layered disk embodies a dynamic Volatility Surface or deep Liquidity Pool for Digital Asset Derivatives. Dual metallic probes symbolize Algorithmic Trading and RFQ protocol inquiries, driving Price Discovery and High-Fidelity Execution of Multi-Leg Spreads within a Principal's operational framework.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-grade-rfq-protocol-mechanism-for-digital-asset-derivatives-price-discovery-and-high-fidelity-execution-via-prime-os.jpg)

A protocol-aware TCA framework compares CLOB efficiency and RFQ price improvement to optimize total execution cost.

- 
### [How Can Transaction Cost Analysis Be Used to Validate the Effectiveness of an RFQ-Based Execution Strategy?](https://options.greeks.live/question/how-can-transaction-cost-analysis-be-used-to-validate-the-effectiveness-of-an-rfq-based-execution-strategy/)
![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)

TCA provides the quantitative validation layer to measure and optimize an RFQ strategy's execution quality and capital efficiency.

- 
### [How Does the Best Execution Analysis for an RFQ Differ from That of a Lit Order Book Execution?](https://options.greeks.live/question/how-does-the-best-execution-analysis-for-an-rfq-differ-from-that-of-a-lit-order-book-execution/)
![Sleek, metallic components with reflective blue surfaces depict an advanced institutional RFQ protocol. Its central pivot and radiating arms symbolize aggregated inquiry for multi-leg spread execution, optimizing order book dynamics. This intricate market microstructure enables high-fidelity execution of digital asset derivatives, ensuring capital efficiency.](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-rfq-microstructure-for-institutional-digital-asset-derivatives.jpg)

Best execution analysis shifts from measuring public market impact in lit books to managing private information leakage in RFQs.

- 
### [How Does the Choice between Rfq and Clob Protocols Affect Post-Trade Transaction Cost Analysis?](https://options.greeks.live/question/how-does-the-choice-between-rfq-and-clob-protocols-affect-post-trade-transaction-cost-analysis/)
![An advanced digital asset derivatives system features a central liquidity pool aperture, integrated with a high-fidelity execution engine. This Prime RFQ architecture supports RFQ protocols, enabling block trade processing and price discovery. It manages multi-leg spreads and optimizes portfolio margin through quantitative analysis for alpha generation.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-rfq-protocol-execution-system-architecture.jpg)

Protocol choice dictates TCA's focus: CLOBs on public market impact, RFQs on private auction quality.

- 
### [In What Ways Does the Best Execution Analysis for Rfq-Based Trades Differ from That of Lit Market Orders?](https://options.greeks.live/question/in-what-ways-does-the-best-execution-analysis-for-rfq-based-trades-differ-from-that-of-lit-market-orders/)
![A metallic Prime RFQ core, etched with algorithmic trading patterns, interfaces a precise high-fidelity execution blade. This blade engages liquidity pools and order book dynamics, symbolizing institutional grade RFQ protocol processing for digital asset derivatives price discovery.](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-digital-asset-derivatives-rfq-high-fidelity-execution-system.jpg)

Best execution analysis shifts from measuring an order's impact on a public market to evaluating the competitive integrity of a private price negotiation.

- 
### [How Does Transaction Cost Analysis Quantify the Tradeoffs between RFQ and Dark Pool Execution?](https://options.greeks.live/question/how-does-transaction-cost-analysis-quantify-the-tradeoffs-between-rfq-and-dark-pool-execution/)
![A central precision-engineered RFQ engine orchestrates high-fidelity execution across interconnected market microstructure. This Prime RFQ node facilitates multi-leg spread pricing and liquidity aggregation for institutional digital asset derivatives, minimizing slippage.](https://options.greeks.live/wp-content/uploads/2025/08/high-fidelity-rfq-execution-for-institutional-crypto-derivatives.jpg)

TCA quantifies the RFQ's price improvement against the dark pool's hidden cost of adverse selection, enabling optimal venue selection.

- 
### [How Does the Concept of Implementation Shortfall Apply Differently to RFQ versus Lit Order Book Executions?](https://options.greeks.live/question/how-does-the-concept-of-implementation-shortfall-apply-differently-to-rfq-versus-lit-order-book-executions/)
![Abstract intersecting blades in varied textures depict institutional digital asset derivatives. These forms symbolize sophisticated RFQ protocol streams enabling multi-leg spread execution across aggregated liquidity. The visualization emphasizes high-fidelity execution, leveraging market microstructure analytics for optimal capital efficiency within a Prime RFQ environment.](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-driven-digital-asset-derivatives-rfq-protocol-execution.jpg)

Implementation shortfall quantifies execution cost, applying differently to lit markets (market impact) versus RFQs (negotiation spread/leakage).

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---

**Original URL:** https://options.greeks.live/question/what-are-the-primary-metrics-for-comparing-rfq-and-lit-market-execution-quality/
