# What Are the Specific Record-Keeping Requirements for Demonstrating Best Execution under RTS 27 and RTS 28? ▴ Question

**Published:** 2025-08-10
**Categories:** Question

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![Abstract intersecting geometric forms, deep blue and light beige, represent advanced RFQ protocols for institutional digital asset derivatives. These forms signify multi-leg execution strategies, principal liquidity aggregation, and high-fidelity algorithmic pricing against a textured global market sphere, reflecting robust market microstructure and intelligence layer](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-multi-leg-execution-algorithmic-pricing-global-liquidity-principal-trading-systemic-integration-high-fidelity-execution.jpg)

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

## Concept

The mandate to demonstrate [best execution](https://prime.greeks.live/area/best-execution/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) is a foundational principle of market integrity, a mechanism designed to align the interests of investment firms with those of their clients. Regulatory Technical Standards 27 and 28, born from the MiFID II framework, represent a systemic attempt to codify this principle through data. They were conceived as a transparent, dual-sided reporting architecture. RTS 27 required [execution venues](https://prime.greeks.live/question/how-should-a-best-execution-committee-quantify-and-compare-the-performance-of-different-execution-venues/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) to publish detailed quarterly metrics on the quality of their execution, creating a standardized data set for public consumption.

Concurrently, [RTS 28](https://prime.greeks.live/area/rts-28/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) compelled investment firms to annually disclose their top five execution venues and provide a qualitative summary of the execution outcomes achieved. This structure was intended to create a feedback loop, where empirical data from venues would inform and substantiate the execution policies of firms.

Understanding this framework requires seeing it not as a mere compliance task, but as an operational schematic for data-driven accountability. The core idea was to move the concept of best execution from a subjective assessment to a quantifiable, comparable process. For the first time, firms were not only required to have a policy but also to publicly substantiate their choices with data from the venues themselves.

This system was designed to expose the intricate details of the execution process, including price, costs, speed, and [likelihood of execution](https://prime.greeks.live/area/likelihood-of-execution/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), to systematic scrutiny. The interplay between the two reports formed a system of checks and balances, where a firm’s [venue selection](https://prime.greeks.live/question/what-are-the-key-differences-between-on-venue-and-off-venue-rfq-obligations-under-mifid-ii/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), disclosed in RTS 28, could be cross-referenced against the quality reports published by those same venues under RTS 27.

> The dual-sided reporting architecture of RTS 27 and RTS 28 was engineered to transform best execution from a theoretical obligation into a verifiable, data-centric discipline.

However, the operational reality of this framework has evolved. Regulatory authorities in both the UK and the EU have suspended the mandatory production of these public reports. This decision was driven by a pragmatic assessment that the immense cost and complexity of generating the reports were not justified by their limited use among end-investors. This suspension does not dissolve the underlying obligation.

The legal and ethical duty to achieve the best possible result for clients remains firmly in place. Consequently, the record-keeping principles that underpinned [RTS 27](https://prime.greeks.live/area/rts-27/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) and 28 have been repurposed. They now serve as the blueprint for a firm’s [internal execution quality analysis](https://prime.greeks.live/question/how-should-a-best-execution-committee-evaluate-the-use-of-affiliated-brokers-or-internal-dark-pools/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (EQA) systems. The focus has shifted from public disclosure to building a robust internal repository of execution data, capable of demonstrating compliance and, more importantly, driving continuous improvement in execution strategy.

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

![A precision institutional interface features a vertical display, control knobs, and a sharp element. This RFQ Protocol system ensures High-Fidelity Execution and optimal Price Discovery, facilitating Liquidity Aggregation](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-execution-platform-interface.jpg)

## Strategy

A strategic approach to best execution in the current regulatory environment involves internalizing the logic of RTS 27 and RTS 28. The suspension of public reporting presents an opportunity to move beyond a compliance-driven exercise and develop a proprietary execution intelligence framework. The objective is to construct a system that not only satisfies regulatory scrutiny upon request but also generates a tangible competitive advantage through superior execution outcomes. This involves treating the data points specified within the original RTS mandates as the essential inputs for a dynamic, internal decision-making engine.

![A central processing core with intersecting, transparent structures revealing intricate internal components and blue data flows. This symbolizes an institutional digital asset derivatives platform's Prime RFQ, orchestrating high-fidelity execution, managing aggregated RFQ inquiries, and ensuring atomic settlement within dynamic market microstructure, optimizing capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-trading-system-facilitating-high-fidelity-rfq-protocol-optimization-for-best-execution-and-atomic-settlement.jpg)

## The Duality of Execution Data

The original RTS framework created a valuable conceptual separation between venue-specific data and firm-specific analysis. A sophisticated strategy maintains this distinction internally. One part of the system focuses on collecting and analyzing data equivalent to RTS 27, evaluating potential and utilized execution venues across a spectrum of quantitative metrics.

The other part, mirroring RTS 28, synthesizes this data to create a coherent narrative about the firm’s [execution policy](https://prime.greeks.live/question/what-is-the-role-of-a-firms-execution-policy-in-demonstrating-compliance-with-best-execution-rules/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), its venue selection rationale, and the qualitative outcomes achieved for clients. This dual-track analysis allows for a more granular and objective assessment of performance.

For instance, a firm can systematically capture data on latency, fill rates, and [price improvement](https://prime.greeks.live/area/price-improvement/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) from various liquidity providers. This internal “RTS 27” repository allows for an objective comparison of venues. Subsequently, the firm’s trading function can use this data to build its “RTS 28” analysis, justifying why certain venues were chosen for specific asset classes and order types, and demonstrating how those choices led to optimal results for clients. This creates a powerful feedback loop where performance data continuously refines execution policy.

![A transparent sphere, representing a digital asset option, rests on an aqua geometric RFQ execution venue. This proprietary liquidity pool integrates with an opaque institutional grade infrastructure, depicting high-fidelity execution and atomic settlement within a Principal's operational framework for Crypto Derivatives OS](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-system-prime-os.jpg)

## Comparative Framework of RTS 27 and RTS 28 Logic

Even without the reporting mandate, the distinct functions of the two reports provide a powerful model for organizing internal analysis. The table below outlines this strategic separation.

| Analytical Function | Internal System Component (RTS 27 Logic) | Internal System Component (RTS 28 Logic) |
| --- | --- | --- |
| Purpose | To generate raw, objective execution quality data on a per-venue basis. | To synthesize venue data and summarize how the firm’s policies achieved best execution for clients. |
| Data Granularity | High-frequency data points ▴ price, cost, speed, likelihood of execution per instrument. | Aggregated analysis ▴ top five venues used, summary of execution quality, qualitative commentary. |
| Primary Focus | Venue performance metrics. | Firm performance and client outcomes. |
| Strategic Value | Provides the empirical evidence for comparing and selecting liquidity providers. | Demonstrates the effectiveness of the firm’s execution policy and decision-making process. |

![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)

## Building an Internal Execution Quality Repository

The strategic imperative is to build a proprietary database that captures the spirit of the RTS requirements. This repository becomes the single source of truth for all execution-related inquiries, both internal and external. The following steps outline a process for creating such a system:

- 
**Data Point Identification** ▴ Define the specific data fields to be captured, using the original RTS 27 tables as a starting point. This includes instrument-level details on price, costs, execution speed, and fill likelihood.

- 
**Automated Data Capture** ▴ Implement technology to systematically capture this data from all execution venues and liquidity providers. This may involve integrating with FIX protocol data feeds or other trading system outputs.

- 
**Normalization and Standardization** ▴ Because data from different venues can be inconsistent, a normalization layer is required. All data must be converted into a standard internal format to allow for accurate, like-for-like comparisons.

- 
**Analysis and Visualization** ▴ Develop analytical tools and dashboards to interrogate the data. This allows traders and compliance officers to monitor [execution quality](https://prime.greeks.live/question/how-should-a-firms-best-execution-committee-use-rfq-data-to-oversee-and-improve-execution-quality/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) in near real-time and identify performance degradation or improvement opportunities.

- 
**Qualitative Overlay** ▴ Create a structured process for documenting the qualitative aspects of execution, as required by the RTS 28 logic. This includes commentary on venue selection, explanations for specific routing decisions, and an overall assessment of the quality achieved.

By adopting this strategy, a firm transforms a suspended regulatory requirement into a powerful internal tool. This system provides an auditable, evidence-based record of best execution practices, ready to be presented to regulators or clients, while simultaneously providing the intelligence needed to optimize trading performance continuously.

![Intricate core of a Crypto Derivatives OS, showcasing precision platters symbolizing diverse liquidity pools and a high-fidelity execution arm. This depicts robust principal's operational framework for institutional digital asset derivatives, optimizing RFQ protocol processing and market microstructure for best execution](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-microstructure-execution-system.jpg)

![A deconstructed mechanical system with segmented components, revealing intricate gears and polished shafts, symbolizing the transparent, modular architecture of an institutional digital asset derivatives trading platform. This illustrates multi-leg spread execution, RFQ protocols, and atomic settlement processes](https://options.greeks.live/wp-content/uploads/2025/07/deconstructed-principal-trading-system-revealing-core-mechanics-of-digital-asset-derivatives-execution.jpg)

## Execution

The operational execution of a best execution monitoring framework, modeled on the principles of RTS 27 and RTS 28, requires a meticulous and systematic approach to data management. The objective is to create an evidentiary record that is both comprehensive and defensible. This means capturing specific, granular data points at every stage of the order lifecycle and for every relevant financial instrument. While the public reports are suspended, these data fields represent the regulatory expectation of what a firm should be monitoring to substantiate its execution quality claims.

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

## Core Record-Keeping for Venue Analysis (RTS 27 Principles)

To conduct a robust internal analysis of execution venues, a firm must capture data that illuminates performance across several key dimensions. The following table details the specific record-keeping requirements, organized by the type of financial instrument, as originally outlined in the RTS 27 framework. This structure serves as a definitive guide for building an internal venue performance database.

> A granular, instrument-specific data capture system is the foundation of any credible execution quality analysis framework.

| Data Category | Specific Data Points to Record | Applicable Instrument Classes |
| --- | --- | --- |
| Price | Intraday information on best bids and offers, simple average execution price, and total value of executed orders. Data on price improvements (size and frequency) is also vital. | Equities, ETFs, Debt Instruments, Interest Rate Derivatives, Equity Derivatives. |
| Costs | Explicit execution costs (fees, commissions), implicit costs (slippage), and any other charges levied by the venue. This must be captured per transaction. | All instrument classes. |
| Speed | Average time elapsed from order receipt to execution for different order types and sizes. This should be measured in milliseconds. | Equities, ETFs, Derivatives. |
| Likelihood of Execution | Total number of orders received versus the number of orders executed. This should be broken down by order size and type (e.g. limit, market). | All instrument classes. |
| Order and Trade Information | Number and value of orders executed, number of cancelled orders, and information on directed vs. non-directed orders. | All instrument classes. |

![Two reflective, disc-like structures, one tilted, one flat, symbolize the Market Microstructure of Digital Asset Derivatives. This metaphor encapsulates RFQ Protocols and High-Fidelity Execution within a Liquidity Pool for Price Discovery, vital for a Principal's Operational Framework ensuring Atomic Settlement](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-high-fidelity-execution-liquidity-aggregation-optimizing-market-microstructure-principal-trading-best-execution-atomic-settlement.jpg)

## Firm-Level Reporting and Qualitative Assessment (RTS 28 Principles)

The second component of the execution framework is the synthesis and qualitative assessment, mirroring the original intent of RTS 28. This involves documenting the firm’s own execution practices and demonstrating how they serve the client’s best interests. The record-keeping here is less about raw data and more about structured analysis and commentary.

- 
**Top Five Venue Reporting** ▴ For each class of financial instrument, the firm must maintain internal records of the top five execution venues used, measured by trading volume. This list should be accompanied by a record of the percentage of client orders routed to each venue.

- 
**Execution Quality Summary** ▴ A detailed qualitative summary must be maintained. This document is a critical piece of evidence. It should articulate:

<li>An explanation of how the firm’s execution policy was followed.

- A description of how the execution quality data gathered (per the RTS 27 principles) informed venue selection.

- Analysis of any conflicts of interest that may have affected execution outcomes.

- Details on any specific arrangements with execution venues (e.g. payment for order flow, if applicable).

- A comparison of the performance of different venues and the rationale for any changes in venue selection over the review period.

</li>
- 
**Differentiation by Client Type** ▴ The records must show how execution strategies differ for retail and professional clients. The best execution criteria can vary significantly between these two groups, and the firm’s policies and records must reflect this differentiation.

By meticulously maintaining these two sets of records ▴ the quantitative, venue-specific data and the qualitative, firm-level analysis ▴ an investment firm constructs a comprehensive and auditable best execution file. This internal system not only prepares the firm for any regulatory inquiry but also embeds a culture of continuous, data-driven improvement in its trading operations, turning a regulatory principle into a source of operational excellence.

![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)

## References

- TRAction Fintech. “RTS 27 and 28 ▴ The 2024 Status of These Reports in UK and EU.” 14 February 2024.

- IforPE. “Best Execution and the RTS 27 & 28 Reports.” 3 March 2023.

- Cleveland & Co. “FCA changes to MiFID II research rules and an end to RTS 27 and RTS 28 best execution reporting.” 21 April 2022.

- SALVUS Funds. “Best Execution in Practice and the new RTS 27/28 requirements.” 24 October 2024.

- European Securities and Markets Authority. “Final Report on the review of the best execution reports under RTS 27 and RTS 28 of MiFID II.” 16 May 2022.

![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)

## Reflection

![A precisely engineered central blue hub anchors segmented grey and blue components, symbolizing a robust Prime RFQ for institutional trading of digital asset derivatives. This structure represents a sophisticated RFQ protocol engine, optimizing liquidity pool aggregation and price discovery through advanced market microstructure for high-fidelity execution and private quotation](https://options.greeks.live/wp-content/uploads/2025/08/prime-os-digital-asset-derivatives-rfq-execution-core-systemic-hub.jpg)

## From Mandate to Mechanism

The suspension of RTS 27 and 28 reporting shifts the locus of responsibility inward. The framework’s true value was never in the public filing of reports, but in the institutionalization of a data-driven process for self-assessment. The question for firms now is how to evolve this mandated architecture into a proprietary intelligence system. An organization’s ability to systematically capture, normalize, and analyze execution data becomes a direct reflection of its commitment to its clients.

The principles behind the regulations offer a robust schematic for this system. Viewing the record-keeping requirements not as a historical artifact but as a blueprint for an [internal execution quality](https://prime.greeks.live/question/how-should-a-best-execution-committee-evaluate-the-use-of-affiliated-brokers-or-internal-dark-pools/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) analysis engine is the first step. The ultimate goal is to create a system where the demonstration of best execution is a continuous, automated output of the firm’s operational design, not a reactive, manual exercise. This transforms a regulatory concept into a core component of the firm’s operational and competitive identity.

![A polished blue sphere representing a digital asset derivative rests on a metallic ring, symbolizing market microstructure and RFQ protocols, supported by a foundational beige sphere, an institutional liquidity pool. A smaller blue sphere floats above, denoting atomic settlement or a private quotation within a Principal's Prime RFQ for high-fidelity execution](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-market-microstructure-and-rfq-protocols.jpg)

## Glossary

<a href="https://prime.greeks.live/question/how-should-a-best-execution-committee-quantify-and-compare-the-performance-of-different-execution-venues/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, precision-engineered device with a split-screen interface displaying implied volatility and price discovery data for digital asset derivatives. This institutional grade module optimizes RFQ protocols, ensuring high-fidelity execution and capital efficiency within market microstructure for multi-leg spreads](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-module.jpg)

## Execution Venues

A Best Execution Committee operationalizes a multi-factor quantitative model to govern the firm's trading system and optimize capital efficiency. </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">
![Metallic platter signifies core market infrastructure. A precise blue instrument, representing RFQ protocol for institutional digital asset derivatives, targets a green block, signifying a large block trade](https://options.greeks.live/wp-content/uploads/2025/07/precision-institutional-digital-asset-derivatives-rfq-protocol-execution-engine-market-microstructure-optimization-for-alpha-generation.jpg)

## Best Execution

Meaning ▴ Best Execution is the obligation to obtain the most favorable terms reasonably available for a client's order. </a><a href="https://prime.greeks.live/area/rts-28/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A complex sphere, split blue implied volatility surface and white, balances on a beam. A transparent sphere acts as fulcrum](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-balancing-liquidity.jpg)

## Rts 28

Meaning ▴ RTS 28 refers to Regulatory Technical Standard 28 under MiFID II, which mandates investment firms and market operators to publish annual reports on the quality of execution of transactions on trading venues and for financial instruments. </a><a href="https://prime.greeks.live/area/likelihood-of-execution/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![An institutional-grade RFQ Protocol engine, with dual probes, symbolizes precise price discovery and high-fidelity execution. This robust system optimizes market microstructure for digital asset derivatives, ensuring minimal latency and best execution](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-protocol-engine-for-optimal-price-discovery-and-high-fidelity-execution.jpg)

## Likelihood of Execution

Meaning ▴ The Likelihood of Execution represents a probabilistic assessment of an order's successful fill at or near its desired price, derived from a real-time analysis of prevailing market conditions and specific order parameters. </a><a href="https://prime.greeks.live/question/what-are-the-key-differences-between-on-venue-and-off-venue-rfq-obligations-under-mifid-ii/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Abstract RFQ engine, transparent blades symbolize multi-leg spread execution and high-fidelity price discovery. The central hub aggregates deep liquidity pools](https://options.greeks.live/wp-content/uploads/2025/07/principal-rfq-engine-for-crypto-derivatives-high-fidelity-block-trade.jpg)

## Venue Selection

The core distinction lies in the interaction model ▴ on-venue RFQs are multilateral, fostering competition, while off-venue RFQs are bilateral, prioritizing information control. </a><a href="https://prime.greeks.live/question/how-should-a-best-execution-committee-evaluate-the-use-of-affiliated-brokers-or-internal-dark-pools/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A segmented rod traverses a multi-layered spherical structure, depicting a streamlined Institutional RFQ Protocol. This visual metaphor illustrates optimal Digital Asset Derivatives price discovery, high-fidelity execution, and robust liquidity pool integration, minimizing slippage and ensuring atomic settlement for multi-leg spreads within a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-flow-1.jpg)

## Internal Execution Quality Analysis

A Best Execution Committee's evaluation of internal venues is the rigorous, data-driven calibration of the firm's proprietary market architecture. </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 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)

## Rts 27

Meaning ▴ RTS 27 mandates that investment firms and market operators publish detailed data on the quality of execution of transactions on their venues. </a><a href="https://prime.greeks.live/question/what-is-the-role-of-a-firms-execution-policy-in-demonstrating-compliance-with-best-execution-rules/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![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)

## Execution Policy

A firm's execution policy is the operational blueprint for translating fiduciary duty into a demonstrable, data-driven compliance framework. </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">
![A teal-blue textured sphere, signifying a unique RFQ inquiry or private quotation, precisely mounts on a metallic, institutional-grade base. Integrated into a Prime RFQ framework, it illustrates high-fidelity execution and atomic settlement for digital asset derivatives within market microstructure, ensuring capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-prime-os-execution-1.jpg)

## Price Improvement

Meaning ▴ Price improvement denotes the execution of a trade at a more advantageous price than the prevailing National Best Bid and Offer (NBBO) at the moment of order submission. </a><a href="https://prime.greeks.live/question/how-should-a-firms-best-execution-committee-use-rfq-data-to-oversee-and-improve-execution-quality/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![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)

## Execution Quality

A Best Execution Committee uses RFQ data to build a quantitative, evidence-based oversight system that optimizes counterparty selection and routing. </a><a href="https://prime.greeks.live/question/how-should-a-best-execution-committee-evaluate-the-use-of-affiliated-brokers-or-internal-dark-pools/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![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](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-multi-leg-execution-layer.jpg)

## Internal Execution Quality

A Best Execution Committee's evaluation of internal venues is the rigorous, data-driven calibration of the firm's proprietary market architecture. </a>

**Tags:** [Execution Quality Analysis](https://options.greeks.live/area/execution-quality-analysis/), [MiFID II](https://options.greeks.live/area/mifid-ii/), [RTS 27](https://options.greeks.live/area/rts-27/), [Likelihood of Execution](https://options.greeks.live/area/likelihood-of-execution/), [Execution Costs](https://options.greeks.live/area/execution-costs/), [Price Improvement](https://options.greeks.live/area/price-improvement/)	

## Discover More

- 
### [What Are the Core Differences between MiFID I and MiFID II regarding Best Execution Requirements?](https://options.greeks.live/question/what-are-the-core-differences-between-mifid-i-and-mifid-ii-regarding-best-execution-requirements/)
![Metallic platter signifies core market infrastructure. A precise blue instrument, representing RFQ protocol for institutional digital asset derivatives, targets a green block, signifying a large block trade. This illustrates high-fidelity execution, market microstructure, and capital efficiency within Prime RFQ.](https://options.greeks.live/wp-content/uploads/2025/07/precision-institutional-digital-asset-derivatives-rfq-protocol-execution-engine-market-microstructure-optimization-for-alpha-generation.jpg)

MiFID II elevates best execution from a "reasonable steps" principle to a "sufficient steps" mandate, demanding data-driven proof of optimal outcomes.

- 
### [How Does the Analysis of RTS 27 and RTS 28 Data Inform the Strategic Decisions of a Best Execution Committee?](https://options.greeks.live/question/how-does-the-analysis-of-rts-27-and-rts-28-data-inform-the-strategic-decisions-of-a-best-execution-committee/)
![A sleek metallic teal execution engine, representing a Crypto Derivatives OS, interfaces with a luminous pre-trade analytics display. This abstract view depicts institutional RFQ protocols enabling high-fidelity execution for multi-leg spreads, optimizing market microstructure and atomic settlement.](https://options.greeks.live/wp-content/uploads/2025/07/advanced-institutional-digital-asset-derivatives-rfq-protocol-engine-for-high-fidelity-execution-and-market-microstructure-analysis.jpg)

RTS 27/28 analysis provides the empirical evidence for a Best Execution Committee to validate and optimize venue selection and strategy.

- 
### [What Are the Key Differences in Best Execution Rules between the US and Europe?](https://options.greeks.live/question/what-are-the-key-differences-in-best-execution-rules-between-the-us-and-europe/)
![A precision execution pathway with an intelligence layer for price discovery, processing market microstructure data. A reflective block trade sphere signifies private quotation within a dark pool. This visualizes high-fidelity execution and capital efficiency for institutional digital asset derivatives via RFQ protocols.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-precision-execution.jpg)

US best execution prioritizes favorable outcomes; Europe's MiFID II mandates a sufficient, data-driven process to prove it.

- 
### [How Do Regulatory Frameworks like MiFID II Influence the Design and Auditing of RFQ Panel Strategies?](https://options.greeks.live/question/how-do-regulatory-frameworks-like-mifid-ii-influence-the-design-and-auditing-of-rfq-panel-strategies/)
![Sleek, interconnected metallic components with glowing blue accents depict a sophisticated institutional trading platform. A central element and button signify high-fidelity execution via RFQ protocols. Angular panels represent diverse liquidity pools and multi-leg spread components, reflecting a robust Principal's operational framework optimizing digital asset derivatives market microstructure.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-system-microstructure.jpg)

MiFID II transforms RFQ panels from relationship-based lists into auditable, data-driven liquidity pools to prove best execution.

- 
### [What Are the Primary Governance Challenges in Implementing a MiFID II Best Execution Committee?](https://options.greeks.live/question/what-are-the-primary-governance-challenges-in-implementing-a-mifid-ii-best-execution-committee/)
![Sharp, intersecting geometric planes in teal, deep blue, and beige form a precise, pointed leading edge against darkness. This signifies High-Fidelity Execution for Institutional Digital Asset Derivatives, reflecting complex Market Microstructure and Price Discovery. It embodies RFQ optimization, Capital Efficiency across Liquidity Pools, and Atomic Settlement via a Prime RFQ.](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-digital-asset-derivatives-rfq-market-microstructure-2.jpg)

A Best Execution Committee's core challenge is architecting a governance system to translate regulatory principles into quantifiable, evidence-based oversight.

- 
### [In What Ways Do Regulations like Mifid Ii Mandate Different Evidentiary Requirements for Lit versus Rfq Best Execution?](https://options.greeks.live/question/in-what-ways-do-regulations-like-mifid-ii-mandate-different-evidentiary-requirements-for-lit-versus-rfq-best-execution/)
![A polished disc with a central green RFQ engine for institutional digital asset derivatives. Radiating lines symbolize high-fidelity execution paths, atomic settlement flows, and market microstructure dynamics, enabling price discovery and liquidity aggregation within a Prime RFQ.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-core-for-optimal-execution.jpg)

MiFID II mandates distinct evidentiary paths: lit markets demand quantitative proof against public data, while RFQ requires procedural proof of a competitive internal process.

- 
### [Even with Reporting Suspended, What Best Execution Information Must Be Provided to Clients upon Request?](https://options.greeks.live/question/even-with-reporting-suspended-what-best-execution-information-must-be-provided-to-clients-upon-request/)
![A precision-engineered system with a central gnomon-like structure and suspended sphere. This signifies high-fidelity execution for digital asset derivatives. Intricate disc patterns denote volatility surface and algorithmic trading. Teal elements represent liquidity pools and Prime RFQ facilitating atomic settlement via RFQ protocol.](https://options.greeks.live/wp-content/uploads/2025/07/precision-engine-for-institutional-digital-asset-derivatives-rfq.jpg)

Upon request, a firm must provide a detailed analysis of execution quality, including quantitative data and a qualitative rationale.

- 
### [What Are the Key Differences in Best Execution Requirements between US and EU Regulations?](https://options.greeks.live/question/what-are-the-key-differences-in-best-execution-requirements-between-us-and-eu-regulations/)
![A reflective surface supports a sharp metallic element, stabilized by a sphere, alongside translucent teal prisms. This abstractly represents institutional-grade digital asset derivatives RFQ protocol price discovery within a Prime RFQ, emphasizing high-fidelity execution and liquidity pool optimization.](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-derivatives-rfq-prime-os-microstructure-optimization.jpg)

US best execution prioritizes a verifiable best price, while the EU mandates a holistic optimization of price, cost, speed, and certainty.

- 
### [How Do SIs and OTFs Impact Best Execution Obligations under MiFID II?](https://options.greeks.live/question/how-do-sis-and-otfs-impact-best-execution-obligations-under-mifid-ii/)
![Intersecting multi-asset liquidity channels with an embedded intelligence layer define this precision-engineered framework. It symbolizes advanced institutional digital asset RFQ protocols, visualizing sophisticated market microstructure for high-fidelity execution, mitigating counterparty risk and enabling atomic settlement across crypto derivatives.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-rfq-execution-system-microstructure-dynamics.jpg)

SIs and OTFs reshape best execution by formalizing liquidity pools and mandating data transparency, requiring firms to adopt a more quantitative, evidence-based approach to prove compliance.

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---

**Original URL:** https://options.greeks.live/question/what-are-the-specific-record-keeping-requirements-for-demonstrating-best-execution-under-rts-27-and-rts-28/
