# What Constitutes a "Commercially Reasonable Procedure" When Obtaining Valuation Quotes? ▴ Question

**Published:** 2025-08-13
**Categories:** Question

---

![Sleek, modular infrastructure for institutional digital asset derivatives trading. Its intersecting elements symbolize integrated RFQ protocols, facilitating high-fidelity execution and precise price discovery across complex multi-leg spreads](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-system-optimizing-high-fidelity-block-trade-liquidity-and-multi-leg-spread-precision.jpg)

![A modular, dark-toned system with light structural components and a bright turquoise indicator, representing a sophisticated Crypto Derivatives OS for institutional-grade RFQ protocols. It signifies private quotation channels for block trades, enabling high-fidelity execution and price discovery through aggregated inquiry, minimizing slippage and information leakage within dark liquidity pools](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-system-for-optimal-execution-1.jpg)

## Concept

The question of what constitutes a “[commercially reasonable procedure](https://prime.greeks.live/question/what-constitutes-a-commercially-reasonable-procedure-when-calculating-a-close-out-amount-under-the-2002-isda/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite)” for obtaining valuation quotes is a foundational query for any entity with fiduciary responsibilities. The term itself, steeped in legal and commercial precedent, points toward a standard of conduct that is fair, executed in good faith, and aligns with commonly accepted practices within a specific market. For fiduciaries, fund managers, and corporate directors, this is the bedrock of defensible valuation.

The objective is to construct a [valuation process](https://prime.greeks.live/question/how-does-a-provisional-valuation-differ-from-a-definitive-valuation-in-a-bank-resolution/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) that is not only accurate but can also withstand scrutiny from regulators, auditors, and litigants. This requirement becomes particularly acute when dealing with assets that lack a readily available public market price, such as certain derivatives, private credit instruments, or illiquid equity stakes.

At its heart, [commercial reasonableness](https://prime.greeks.live/question/how-do-courts-define-commercial-reasonableness-in-isda-loss-calculations/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) is an operational discipline. It is the systematic implementation of policies and procedures designed to arrive at a [fair value](https://prime.greeks.live/area/fair-value/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) determination through a process that is both transparent and repeatable. The core idea, as supported by various legal interpretations, is that the procedure must be logical and appropriate for the specific asset being valued. For instance, the methodology for valuing a portfolio of publicly traded equities would differ substantially from that used for a bespoke, over-the-counter derivative contract.

The procedure must make sense as a means to accomplish the parties’ goals of achieving an objective valuation. This means the process must be tailored to the asset’s characteristics, the available data, and the market context.

![Mirrored abstract components with glowing indicators, linked by an articulated mechanism, depict an institutional grade Prime RFQ for digital asset derivatives. This visualizes RFQ protocol driven high-fidelity execution, price discovery, and atomic settlement across market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-digital-asset-rfq-high-fidelity-execution-microstructure.jpg)

## The Pillars of a Defensible Framework

A [commercially reasonable valuation procedure](https://prime.greeks.live/question/what-constitutes-a-commercially-reasonable-procedure-when-calculating-a-close-out-amount-under-the-2002-isda/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) rests on several key pillars that collectively ensure the integrity and defensibility of the final valuation. These principles form the essential architecture of any robust [valuation governance](https://prime.greeks.live/area/valuation-governance/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) system.

- 
**Independence** ▴ The valuation process must be free from bias and conflicts of interest. This often involves segregating the personnel responsible for valuation from those with investment decision-making authority. For particularly complex or hard-to-value assets, engaging independent [third-party valuation](https://prime.greeks.live/area/third-party-valuation/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) firms is a common practice to bolster objectivity. 

- 
**Methodological Soundness** ▴ The chosen [valuation techniques](https://prime.greeks.live/question/how-does-a-provisional-valuation-differ-from-a-definitive-valuation-in-a-bank-resolution/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) must be appropriate for the asset in question. Accounting standards like ASC 820 provide a framework that includes market, income, and cost approaches. A [commercially reasonable](https://prime.greeks.live/area/commercially-reasonable/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) procedure involves selecting and consistently applying the most suitable methodology based on the nature of the asset and the availability of reliable data. 

- 
**Verifiable Inputs** ▴ The data and assumptions used in the valuation models are critical. ASC 820 establishes a fair value hierarchy that prioritizes inputs based on their observability. Level 1 inputs (quoted prices in active markets) are the most reliable, while [Level 3 inputs](https://prime.greeks.live/area/level-3-inputs/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (unobservable inputs) require the most judgment and, consequently, the most rigorous documentation and support. A [reasonable procedure](https://prime.greeks.live/question/what-constitutes-a-commercially-reasonable-procedure-when-calculating-a-close-out-amount-under-the-2002-isda/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) maximizes the use of observable inputs wherever possible. 

- 
**Contemporaneous Documentation** ▴ Every step of the valuation process must be documented as it occurs. This includes the rationale for selecting a particular [valuation methodology](https://prime.greeks.live/question/in-the-absence-of-liquid-markets-how-can-a-determining-party-justify-its-valuation-methodology/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), the sources of all quotes and data, communications with third-party valuation providers, and the deliberations of any [valuation committee](https://prime.greeks.live/area/valuation-committee/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). This audit trail is indispensable for demonstrating that a reasonable process was followed. 

> A commercially reasonable procedure is the documented, systematic process of applying appropriate valuation techniques to reliable inputs to arrive at a defensible fair value determination.

Understanding these foundational concepts is the first step toward building an operational system for valuation that satisfies fiduciary duties and regulatory expectations. The focus is on the integrity of the process, recognizing that a sound process is the best defense for the resulting valuation. It is a proactive measure to ensure that when valuations are questioned, a firm can provide a clear and logical explanation of how the value was derived, supported by a comprehensive body of evidence.

![A multi-faceted digital asset derivative, precisely calibrated on a sophisticated circular mechanism. This represents a Prime Brokerage's robust RFQ protocol for high-fidelity execution of multi-leg spreads, ensuring optimal price discovery and minimal slippage within complex market microstructure, critical for alpha generation](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-precision-2.jpg)

![A sleek, institutional-grade device, with a glowing indicator, represents a Prime RFQ terminal. Its angled posture signifies focused RFQ inquiry for Digital Asset Derivatives, enabling high-fidelity execution and precise price discovery within complex market microstructure, optimizing latent liquidity](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-execution-terminal-facilitating-high-fidelity-price-discovery-and-optimal-liquidity-aggregation.jpg)

## Strategy

Developing a strategy for obtaining valuation quotes requires moving from the conceptual understanding of commercial reasonableness to the design of a functional and resilient workflow. This strategy is an exercise in risk management, operational efficiency, and regulatory preparedness. The central aim is to create a system that consistently produces reliable valuations while being flexible enough to adapt to different asset types and market conditions. A well-defined strategy considers not just the “what” of valuation, but the “who,” “how,” and “when” of the entire process.

![A transparent, multi-faceted component, indicative of an RFQ engine's intricate market microstructure logic, emerges from complex FIX Protocol connectivity. Its sharp edges signify high-fidelity execution and price discovery precision for institutional digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-optimized-for-best-execution.jpg)

## Designing the Valuation Workflow

The architecture of a valuation workflow should be deliberate and codified in a formal [valuation policy](https://prime.greeks.live/question/how-does-a-provisional-valuation-differ-from-a-definitive-valuation-in-a-bank-resolution/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). This policy serves as the blueprint for all valuation activities. It should clearly outline the procedures for valuing every type of asset in a portfolio, from the most liquid to the most illiquid. A strategic approach to workflow design involves several key considerations.

![A precision-engineered interface for institutional digital asset derivatives. A circular system component, perhaps an Execution Management System EMS module, connects via a multi-faceted Request for Quote RFQ protocol bridge to a distinct teal capsule, symbolizing a bespoke block trade](https://options.greeks.live/wp-content/uploads/2025/07/precision-engineered-interface-for-institutional-digital-asset-derivatives-request-for-quote-protocol-high-fidelity-execution-within-principal-operating-system.jpg)

## Establishing a Governance Structure

A formal governance structure is the command and control center of the valuation process. For many firms, this takes the form of a valuation committee. The composition and mandate of this committee are strategic decisions.

- 
**Composition** ▴ The committee should include individuals with relevant expertise in finance, accounting, and risk management. Crucially, it should have members who are independent of the investment team to mitigate conflicts of interest. 

- 
**Mandate** ▴ The committee’s responsibilities should be clearly defined, including approving valuation methodologies, reviewing and approving all Level 3 asset valuations, overseeing third-party valuation providers, and reviewing the valuation policy at least annually. 

- 
**Meeting Cadence** ▴ The frequency of meetings should be dictated by the nature of the assets. A fund holding primarily Level 1 assets might meet quarterly, whereas a fund with significant Level 2 and Level 3 holdings should meet more frequently, such as monthly or whenever a significant event occurs. 

![Abstract geometric forms depict institutional digital asset derivatives trading. A dark, speckled surface represents fragmented liquidity and complex market microstructure, interacting with a clean, teal triangular Prime RFQ structure](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-high-fidelity-execution-system-for-prime-os-liquidity-pool.jpg)

## Sourcing and Managing Valuation Inputs

A critical component of the valuation strategy is the approach to sourcing and managing the inputs that feed the valuation models. This involves establishing a clear hierarchy of preferred data sources and a process for vetting them.

The selection of quote providers is a particularly important strategic decision. Not all sources are created equal, and the choice of provider should be aligned with the asset being valued and the desired level of independence.

### Comparison of Valuation Quote Sources

| Source Type | Level of Independence | Typical Asset Focus | Considerations |
| --- | --- | --- | --- |
| Broker-Dealer Quotes | Low to Medium | Level 2 & 3 Assets (e.g. corporate bonds, some derivatives) | May have potential conflicts if the broker is also a counterparty. It is best practice to obtain quotes from multiple, non-interested brokers. |
| Consensus Pricing Services | Medium | Level 2 Assets | Aggregate data from multiple contributors. The methodology and contributor pool should be understood. |
| Independent Valuation Firms | High | Level 3 Assets (e.g. private equity, complex derivatives) | Offers the highest degree of objectivity and is often preferred by auditors and regulators for hard-to-value assets. |

> The strategic selection of valuation sources, balancing independence with expertise, is fundamental to the credibility of the entire valuation process.

The strategy must also account for situations where market data is scarce or unreliable, particularly during periods of market stress. A dysfunctional market may make it impossible to use a market price to value an asset on a single date. The valuation policy should therefore include contingency plans, such as the use of alternative valuation techniques like a discounted cash flow analysis, when primary methods are not viable.

![A dynamic visual representation of an institutional trading system, featuring a central liquidity aggregation engine emitting a controlled order flow through dedicated market infrastructure. This illustrates high-fidelity execution of digital asset derivatives, optimizing price discovery within a private quotation environment for block trades, ensuring capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/principal-os-driving-high-fidelity-execution-for-digital-asset-derivatives-through-optimized-rfq-protocols-and-smart-order-routing.jpg)

![An abstract, precision-engineered mechanism showcases polished chrome components connecting a blue base, cream panel, and a teal display with numerical data. This symbolizes an institutional-grade RFQ protocol for digital asset derivatives, ensuring high-fidelity execution, price discovery, multi-leg spread processing, and atomic settlement within a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-precision-execution-1.jpg)

## Execution

The execution of a [commercially reasonable valuation](https://prime.greeks.live/question/what-constitutes-a-commercially-reasonable-valuation-in-an-illiquid-market/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) procedure is where strategy is translated into auditable action. This is the operational phase, governed by the principle that every step, decision, and input must be documented and defensible. Effective execution hinges on a disciplined adherence to the established valuation policy and a commitment to creating a contemporaneous and comprehensive [audit trail](https://prime.greeks.live/area/audit-trail/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). For fiduciaries, this is the evidentiary basis that demonstrates that duties were discharged with care and diligence.

![Robust institutional Prime RFQ core connects to a precise RFQ protocol engine. Multi-leg spread execution blades propel a digital asset derivative target, optimizing price discovery](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-rfq-proto-insti-digital-asset-derivs-hi-fi-exec-capital-effi-risk-mgmt.jpg)

## The Operational Playbook for Valuation

A detailed operational playbook is essential for ensuring consistency and completeness in the valuation process. This playbook should provide step-by-step guidance for personnel involved in valuation, leaving little room for ambiguity.

- 
**Asset Identification and Classification** ▴ The first step in any valuation cycle is to identify all assets that require valuation and classify them according to the [ASC 820](https://prime.greeks.live/area/asc-820/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) fair value hierarchy (Level 1, 2, or 3). This classification determines the subsequent valuation approach.

- 
**Application of Valuation Methodology** ▴ For each asset, the specific valuation methodology prescribed in the valuation policy is applied. For Level 2 and 3 assets, this involves initiating the process of obtaining quotes or engaging third-party valuation firms.

- 
**Quote Solicitation and Management** ▴ When soliciting quotes from broker-dealers or other sources, a standardized process should be followed. Requests should be sent to an approved list of providers. It is best practice to solicit multiple quotes (e.g. three to five) to establish a reliable range and identify potential outliers.

- 
**Review and Analysis of Inputs** ▴ All received quotes and data must be critically reviewed. This includes comparing quotes to one another, to recent transaction prices, or to model-based valuations. Any significant discrepancies or outliers must be investigated and documented.

- 
**Valuation Committee Review** ▴ For all Level 3 assets and any other assets deemed high-risk or complex, the valuation committee must conduct a formal review. The committee should challenge the assumptions and inputs used and formally approve the final valuation.

- 
**Documentation and Record-Keeping** ▴ Throughout the process, a detailed record is maintained. This collection of documents, often called a “valuation file,” is the ultimate proof of a commercially reasonable procedure.

![Luminous blue drops on geometric planes depict institutional Digital Asset Derivatives trading. Large spheres represent atomic settlement of block trades and aggregated inquiries, while smaller droplets signify granular market microstructure data](https://options.greeks.live/wp-content/uploads/2025/07/institutional-grade-digital-asset-derivatives-rfq-protocols-driving-high-fidelity-execution-and-optimal-liquidity-discovery.jpg)

## The Anatomy of a Valuation File

The valuation file is the cornerstone of a defensible process. It should be maintained for each asset and each valuation period, providing a complete history of how the fair value was determined. 

### Essential Components of a Valuation File

| Document Type | Purpose | Key Information |
| --- | --- | --- |
| Valuation Checklist | Ensures all procedural steps were followed consistently. | Sign-offs from preparers and reviewers; confirmation of adherence to policy. |
| Quote Documentation | Provides evidence of the data sourced. | Copies of emails, screenshots, or data feeds from quote providers, including the provider’s name and the date and time of the quote. |
| Third-Party Valuation Reports | Details the analysis performed by an independent firm. | The full report, including the scope of work, methodologies used, key assumptions, and the final valuation conclusion. |
| Internal Memos and Analyses | Documents internal deliberations and decisions. | Rationale for selecting a valuation methodology, analysis of outlier quotes, adjustments made to inputs, and justification for any overrides. |
| Valuation Committee Minutes | Records the governance and oversight process. | Attendees, discussion points, challenges raised, and formal approval of valuations. |

> The quality of the documentation directly reflects the quality of the valuation process itself; a complete audit trail is the ultimate expression of commercial reasonableness.

Executing a [valuation procedure](https://prime.greeks.live/question/how-does-a-provisional-valuation-differ-from-a-definitive-valuation-in-a-bank-resolution/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) with this level of rigor transforms the concept of commercial reasonableness from an abstract legal standard into a tangible set of operational controls. It ensures that the firm can not only produce accurate valuations but can also confidently defend them to any interested party, demonstrating a commitment to transparency, objectivity, and fiduciary care.

![A precision mechanism, potentially a component of a Crypto Derivatives OS, showcases intricate Market Microstructure for High-Fidelity Execution. Transparent elements suggest Price Discovery and Latent Liquidity within RFQ Protocols](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-crypto-derivatives-rfq-engine-high-fidelity-execution.jpg)

## References

- Lowenstein Sandler LLP. “HFLR Program Explores Valuation of Illiquid Assets and Valuation Governance.” 2021.

- Society of Actuaries. “Actuarial Methods for Valuing Illiquid Assets.” 2011.

- Cole Schotz. “What Does ‘Commercially Reasonable Determinants of Value’ Mean Under Section 562 of the Bankruptcy Code?” 2010.

- Clifford Chance. “Financial Collateral Arrangements ▴ Valuing Collateral in a ‘Commercially reasonable manner’.” 2022.

- Merriam-Webster. “Commercially Reasonable Definition & Meaning.” Merriam-Webster Legal Dictionary.

- Carta. “What is ASC 820? A Guide to Fair Value Measurements.” 2025.

- Deloitte. “10.4 Inputs to Valuation Techniques.” DART ▴ Deloitte Accounting Research Tool.

- Private Equity Wire. “How to value illiquid investments.” 2024.

- U.S. Securities and Exchange Commission. “SEC Adopts New Rule for Fund Valuations.” 2020.

- Financial Accounting Standards Board. “ASU 2022-03 ▴ Fair Value Hedging ▴ Portfolio Layer Method.” 2022.

![A detailed view of an institutional-grade Digital Asset Derivatives trading interface, featuring a central liquidity pool visualization through a clear, tinted disc. Subtle market microstructure elements are visible, suggesting real-time price discovery and order book dynamics](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-rfq-execution-system-microstructure-display.jpg)

## Reflection

![A sleek blue and white mechanism with a focused lens symbolizes Pre-Trade Analytics for Digital Asset Derivatives. A glowing turquoise sphere represents a Block Trade within a Liquidity Pool, demonstrating High-Fidelity Execution via RFQ protocol for Price Discovery in Dark Pool Market Microstructure](https://options.greeks.live/wp-content/uploads/2025/07/advanced-institutional-digital-asset-derivatives-rfq-execution-system-for-optimal-price-discovery-and-high-fidelity-execution.jpg)

## System Integrity as a Strategic Asset

Ultimately, the framework for establishing a commercially [reasonable valuation procedure](https://prime.greeks.live/question/what-constitutes-a-commercially-reasonable-procedure-when-calculating-a-close-out-amount-under-the-2002-isda/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) is an investment in institutional integrity. It is the construction of an internal system of checks, balances, and verifiable evidence designed to produce a specific output ▴ a valuation that is not only numerically sound but procedurally unimpeachable. The discipline of maintaining this system, from the formal governance of a valuation committee to the granular detail of an audit file, transforms a compliance necessity into a strategic asset.

It provides the confidence to navigate complex markets, the credibility to satisfy investors and regulators, and the resilience to withstand challenges. The question for any fiduciary is how their current operational framework measures against this standard of systemic robustness.

![Abstract metallic components, resembling an advanced Prime RFQ mechanism, precisely frame a teal sphere, symbolizing a liquidity pool. This depicts the market microstructure supporting RFQ protocols for high-fidelity execution of digital asset derivatives, ensuring capital efficiency in algorithmic trading](https://options.greeks.live/wp-content/uploads/2025/07/precision-engineered-institutional-digital-asset-derivatives-prime-os-architecture-driving-rfq-protocol-execution-and-capital-efficiency-optimization.jpg)

## Glossary

<a href="https://prime.greeks.live/question/what-constitutes-a-commercially-reasonable-procedure-when-calculating-a-close-out-amount-under-the-2002-isda/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Abstract depiction of an advanced institutional trading system, featuring a prominent sensor for real-time price discovery and an intelligence layer. Visible circuitry signifies algorithmic trading capabilities, low-latency execution, and robust FIX protocol integration for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-prime-os-high-fidelity-rfq-protocols.jpg)

## Commercially Reasonable Procedure

A commercially reasonable procedure for calculating a Close-Out Amount under the 2002 ISDA is an objective, good faith process. </a><a href="https://prime.greeks.live/question/how-does-a-provisional-valuation-differ-from-a-definitive-valuation-in-a-bank-resolution/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sophisticated institutional digital asset derivatives platform unveils its core market microstructure. Intricate circuitry powers a central blue spherical RFQ protocol engine on a polished circular surface](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-prime-os-unveiling-rfq-protocol-engine-market-microstructure-for-optimal-price-discovery-and-high-fidelity-execution.jpg)

## Valuation Process

A provisional valuation is a rapid, buffered estimate to guide immediate resolution action; a definitive valuation is the final, legally binding assessment. </a><a href="https://prime.greeks.live/question/how-do-courts-define-commercial-reasonableness-in-isda-loss-calculations/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Angularly connected segments portray distinct liquidity pools and RFQ protocols. A speckled grey section highlights granular market microstructure and aggregated inquiry complexities for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-efficiency.jpg)

## Commercial Reasonableness

Courts define commercial reasonableness in ISDA calculations as an objective standard requiring both provably fair procedures and a justifiable result. </a><a href="https://prime.greeks.live/area/fair-value/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Four sleek, rounded, modular components stack, symbolizing a multi-layered institutional digital asset derivatives trading system. Each unit represents a critical Prime RFQ layer, facilitating high-fidelity execution, aggregated inquiry, and sophisticated market microstructure for optimal price discovery via RFQ protocols](https://options.greeks.live/wp-content/uploads/2025/07/modular-institutional-crypto-derivatives-trading-system-components.jpg)

## Fair Value

Meaning ▴ Fair Value represents the theoretical price of an asset, derivative, or portfolio component, meticulously derived from a robust quantitative model, reflecting the true economic equilibrium in the absence of transient market noise. </a><a href="https://prime.greeks.live/question/what-constitutes-a-commercially-reasonable-procedure-when-calculating-a-close-out-amount-under-the-2002-isda/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![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)

## Commercially Reasonable Valuation Procedure

A commercially reasonable procedure for calculating a Close-Out Amount under the 2002 ISDA is an objective, good faith process. </a><a href="https://prime.greeks.live/area/valuation-governance/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![An abstract, multi-component digital infrastructure with a central lens and circuit patterns, embodying an Institutional Digital Asset Derivatives platform. This Prime RFQ enables High-Fidelity Execution via RFQ Protocol, optimizing Market Microstructure for Algorithmic Trading, Price Discovery, and Multi-Leg Spread](https://options.greeks.live/wp-content/uploads/2025/08/institutional-grade-digital-asset-derivatives-trading-platform-powering-high-fidelity-execution-via-advanced-rfq-protocol-prime-os-intelligence-layer.jpg)

## Valuation Governance

Meaning ▴ Valuation Governance defines the structured framework and systematic processes implemented to ensure the accurate, consistent, and auditable determination of asset and liability values within an institutional context. </a><a href="https://prime.greeks.live/area/third-party-valuation/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, illuminated control knob emerges from a robust, metallic base, representing a Prime RFQ interface for institutional digital asset derivatives. Its glowing bands signify real-time analytics and high-fidelity execution of RFQ protocols, enabling optimal price discovery and capital efficiency in dark pools for block trades](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-system-for-optimal-execution.jpg)

## Third-Party Valuation

Meaning ▴ Third-party valuation refers to the independent assessment of an asset's fair market value performed by an unbiased external entity, distinct from the transacting parties or the asset holder. </a><a href="https://prime.greeks.live/area/commercially-reasonable/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sophisticated apparatus, potentially a price discovery or volatility surface calibration tool. A blue needle with sphere and clamp symbolizes high-fidelity execution pathways and RFQ protocol integration within a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-rfq-protocol-institutional-digital-asset-derivatives-execution.jpg)

## Commercially Reasonable

Meaning ▴ Commercially Reasonable refers to actions, terms, or conditions that a prudent party would undertake or accept in a similar business context, aiming to achieve a desired outcome efficiently and effectively while considering prevailing market conditions, industry practices, and available alternatives. </a><a href="https://prime.greeks.live/question/how-does-a-provisional-valuation-differ-from-a-definitive-valuation-in-a-bank-resolution/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![An advanced RFQ protocol engine core, showcasing robust Prime Brokerage infrastructure. Intricate polished components facilitate high-fidelity execution and price discovery for institutional grade digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-core-for-precision-trading.jpg)

## Valuation Techniques

A provisional valuation is a rapid, buffered estimate to guide immediate resolution action; a definitive valuation is the final, legally binding assessment. </a><a href="https://prime.greeks.live/question/what-constitutes-a-commercially-reasonable-procedure-when-calculating-a-close-out-amount-under-the-2002-isda/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sophisticated, symmetrical apparatus depicts an institutional-grade RFQ protocol hub for digital asset derivatives, where radiating panels symbolize liquidity aggregation across diverse market makers. Central beams illustrate real-time price discovery and high-fidelity execution of complex multi-leg spreads, ensuring atomic settlement within a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/institutional-grade-rfq-protocol-facilitating-atomic-settlement-and-high-fidelity-execution-of-multi-leg-spreads.jpg)

## Reasonable Procedure

A commercially reasonable procedure for calculating a Close-Out Amount under the 2002 ISDA is an objective, good faith process. </a><a href="https://prime.greeks.live/area/level-3-inputs/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A gleaming, translucent sphere with intricate internal mechanisms, flanked by precision metallic probes, symbolizes a sophisticated Principal's RFQ engine. This represents the atomic settlement of multi-leg spread strategies, enabling high-fidelity execution and robust price discovery within institutional digital asset derivatives markets, minimizing latency and slippage for optimal alpha generation and capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/inst-digital-asset-deriv-rfq-os-for-optimal-high-fidelity-trade-exec.jpg)

## Level 3 Inputs

Meaning ▴ Level 3 Inputs represent unobservable inputs for fair value measurements, specifically within the framework of ASC 820 and IFRS 13, where quoted prices for identical or similar assets are unavailable in active markets. </a><a href="https://prime.greeks.live/question/in-the-absence-of-liquid-markets-how-can-a-determining-party-justify-its-valuation-methodology/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Abstract layers in grey, mint green, and deep blue visualize a Principal's operational framework for institutional digital asset derivatives. The textured grey signifies market microstructure, while the mint green layer with precise slots represents RFQ protocol parameters, enabling high-fidelity execution, private quotation, capital efficiency, and atomic settlement](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-layered-rfq-protocol-for-digital-asset-execution-system.jpg)

## Valuation Methodology

A determining party justifies its valuation methodology by constructing a transparent, replicable, and documented system based on established frameworks like ASC 820. </a><a href="https://prime.greeks.live/area/valuation-committee/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, metallic module with a dark, reflective sphere sits atop a cylindrical base, symbolizing an institutional-grade Crypto Derivatives OS. This system processes aggregated inquiries for RFQ protocols, enabling high-fidelity execution of multi-leg spreads while managing gamma exposure and slippage within dark pools](https://options.greeks.live/wp-content/uploads/2025/07/principal-trading-crypto-derivatives-rfq-protocol-execution-system.jpg)

## Valuation Committee

Meaning ▴ A Valuation Committee is a formal, designated entity within an institutional framework responsible for establishing and affirming the fair value of assets, particularly illiquid or complex instruments such as institutional digital asset derivatives, where observable market prices may be absent or unreliable. </a><a href="https://prime.greeks.live/question/how-does-a-provisional-valuation-differ-from-a-definitive-valuation-in-a-bank-resolution/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Precision system for institutional digital asset derivatives. Translucent elements denote multi-leg spread structures and RFQ protocols](https://options.greeks.live/wp-content/uploads/2025/07/precision-execution-infrastructure-for-institutional-digital-asset-derivatives-request-for-quote-protocol-optimization.jpg)

## Valuation Policy

A provisional valuation is a rapid, buffered estimate to guide immediate resolution action; a definitive valuation is the final, legally binding assessment. </a><a href="https://prime.greeks.live/question/what-constitutes-a-commercially-reasonable-valuation-in-an-illiquid-market/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Abstract geometric planes in teal, navy, and grey intersect. A central beige object, symbolizing a precise RFQ inquiry, passes through a teal anchor, representing High-Fidelity Execution within Institutional Digital Asset Derivatives](https://options.greeks.live/wp-content/uploads/2025/07/rfq-protocols-for-digital-asset-derivatives-high-fidelity-execution-liquidity-aggregation-price-discovery-market-microstructure.jpg)

## Commercially Reasonable Valuation

A commercially reasonable valuation is the output of a defensible, evidence-based process designed to operate rationally in illiquid markets. </a><a href="https://prime.greeks.live/area/audit-trail/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, split capsule object reveals an internal glowing teal light connecting its two halves, symbolizing a secure, high-fidelity RFQ protocol facilitating atomic settlement for institutional digital asset derivatives. This represents the precise execution of multi-leg spread strategies within a principal's operational framework, ensuring optimal liquidity aggregation](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-system-2.jpg)

## Audit Trail

Meaning ▴ An Audit Trail is a chronological, immutable record of system activities, operations, or transactions within a digital environment, detailing event sequence, user identification, timestamps, and specific actions. </a><a href="https://prime.greeks.live/area/asc-820/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Polished concentric metallic and glass components represent an advanced Prime RFQ for institutional digital asset derivatives. It visualizes high-fidelity execution, price discovery, and order book dynamics within market microstructure, enabling efficient RFQ protocols for block trades](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-prime-os-precision.jpg)

## Asc 820

Meaning ▴ ASC 820, officially Accounting Standards Codification 820, establishes the authoritative framework for fair value measurement within U.S. </a><a href="https://prime.greeks.live/question/how-does-a-provisional-valuation-differ-from-a-definitive-valuation-in-a-bank-resolution/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A central engineered mechanism, resembling a Prime RFQ hub, anchors four precision arms. This symbolizes multi-leg spread execution and liquidity pool aggregation for RFQ protocols, enabling high-fidelity execution](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-framework-enabling-multi-leg-spread-strategies-for-optimized-liquidity.jpg)

## Valuation Procedure

A provisional valuation is a rapid, buffered estimate to guide immediate resolution action; a definitive valuation is the final, legally binding assessment. </a><a href="https://prime.greeks.live/question/what-constitutes-a-commercially-reasonable-procedure-when-calculating-a-close-out-amount-under-the-2002-isda/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sharp, teal blade precisely dissects a cylindrical conduit. This visualizes surgical high-fidelity execution of block trades for institutional digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-precision-execution-microstructure.jpg)

## Reasonable Valuation Procedure

A commercially reasonable procedure for calculating a Close-Out Amount under the 2002 ISDA is an objective, good faith process. </a>

**Tags:** [Level 3 Inputs](https://options.greeks.live/area/level-3-inputs/), [Valuation Quotes](https://options.greeks.live/area/valuation-quotes/), [Fair Value](https://options.greeks.live/area/fair-value/), [Illiquid Assets](https://options.greeks.live/area/illiquid-assets/), [Third-Party Valuation](https://options.greeks.live/area/third-party-valuation/), [Commercially Reasonable](https://options.greeks.live/area/commercially-reasonable/)	

## Discover More

- 
### [What Role Do Machine Learning Models Play in Real-Time Quote Assessment?](https://options.greeks.live/question/what-role-do-machine-learning-models-play-in-real-time-quote-assessment/)
![A precision-engineered system component, featuring a reflective disc and spherical intelligence layer, represents institutional-grade digital asset derivatives. It embodies high-fidelity execution via RFQ protocols for optimal price discovery within Prime RFQ market microstructure.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-intelligence-prime-os.jpg)

Machine learning models deliver precise, real-time quote assessments, transforming market signals into actionable intelligence for superior execution.

- 
### [What Role Do Information Asymmetries Play in Crypto Options RFQ Pricing?](https://options.greeks.live/question/what-role-do-information-asymmetries-play-in-crypto-options-rfq-pricing/)
![A sleek, bi-component digital asset derivatives engine reveals its intricate core, symbolizing an advanced RFQ protocol. This Prime RFQ component enables high-fidelity execution and optimal price discovery within complex market microstructure, managing latent liquidity for institutional operations.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-optimal-execution.jpg)

Information asymmetry shapes crypto options RFQ pricing by introducing adverse selection, necessitating sophisticated protocols for optimal execution and capital efficiency.

- 
### [What Are the Technological Requirements for Implementing Real-Time Quote Validation?](https://options.greeks.live/question/what-are-the-technological-requirements-for-implementing-real-time-quote-validation/)
![A sleek spherical device with a central teal-glowing display, embodying an Institutional Digital Asset RFQ intelligence layer. Its robust design signifies a Prime RFQ for high-fidelity execution, enabling precise price discovery and optimal liquidity aggregation across complex market microstructure.](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-rfq-microstructure-price-discovery-prime-os.jpg)

Real-time quote validation secures capital and enhances execution by ensuring every price signal is verifiably accurate.

- 
### [How Do Regulatory Requirements Influence Quote Shading Interpretability?](https://options.greeks.live/question/how-do-regulatory-requirements-influence-quote-shading-interpretability/)
![A precise mechanical instrument with intersecting transparent and opaque hands, representing the intricate market microstructure of institutional digital asset derivatives. This visual metaphor highlights dynamic price discovery and bid-ask spread dynamics within RFQ protocols, emphasizing high-fidelity execution and latent liquidity through a robust Prime RFQ for atomic settlement.](https://options.greeks.live/wp-content/uploads/2025/07/precision-engineering-driving-institutional-digital-asset-derivatives-execution-across-advanced-rfq-protocols-and-prime-brokerage-frameworks.jpg)

Regulatory requirements mandate transparent, auditable frameworks for quote shading, transforming opaque pricing adjustments into explainable, defensible decisions.

- 
### [What Are the Best Practices for Integrating Proprietary Trading Algorithms into a Crypto Options RFQ Platform?](https://options.greeks.live/question/what-are-the-best-practices-for-integrating-proprietary-trading-algorithms-into-a-crypto-options-rfq-platform/)
![Intricate dark circular component with precise white patterns, central to a beige and metallic system. This symbolizes an institutional digital asset derivatives platform's core, representing high-fidelity execution, automated RFQ protocols, advanced market microstructure, the intelligence layer for price discovery, block trade efficiency, and portfolio margin.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-core.jpg)

Optimizing crypto options RFQ platforms with proprietary algorithms enables swift, precise bilateral price discovery and risk management.

- 
### [What Are the Systemic Implications of Integrating Quote Validation with Order Management Systems?](https://options.greeks.live/question/what-are-the-systemic-implications-of-integrating-quote-validation-with-order-management-systems/)
![Intricate mechanisms represent a Principal's operational framework, showcasing market microstructure of a Crypto Derivatives OS. Transparent elements signify real-time price discovery and high-fidelity execution, facilitating robust RFQ protocols for institutional digital asset derivatives and options trading.](https://options.greeks.live/wp-content/uploads/2025/07/principal-rfq-protocol-engine-for-institutional-digital-asset-derivatives.jpg)

Quote validation in OMS fortifies trading operations, ensuring data fidelity for precise execution and robust risk management.

- 
### [When Does Information Asymmetry Most Significantly Impact Crypto Options RFQ Pricing Fairness?](https://options.greeks.live/question/when-does-information-asymmetry-most-significantly-impact-crypto-options-rfq-pricing-fairness/)
![A sleek, multi-component system, predominantly dark blue, features a cylindrical sensor with a central lens. This precision-engineered module embodies an intelligence layer for real-time market microstructure observation, facilitating high-fidelity execution via RFQ protocol. It's crucial for a crypto derivatives OS, enhancing price discovery within the principal's operational framework.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-rfq-protocol-intelligence-layer-for-digital-asset-derivatives-microstructure.jpg)

Information asymmetry significantly impacts crypto options RFQ fairness during illiquid, volatile periods for complex instruments, demanding robust execution.

- 
### [What Are the Best Practices for Constructing a Fair Value Benchmark for Illiquid Assets?](https://options.greeks.live/question/what-are-the-best-practices-for-constructing-a-fair-value-benchmark-for-illiquid-assets/)
![Intersecting muted geometric planes, with a central glossy blue sphere. This abstract visualizes market microstructure for institutional digital asset derivatives. The sphere embodies a block trade or private quotation via RFQ protocols, ensuring high-fidelity execution and atomic settlement on a Prime RFQ.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-microstructure-5.jpg)

A fair value benchmark for illiquid assets is a systematic, defensible estimate of exit price based on market-participant assumptions.

- 
### [What Constitutes a Commercially Reasonable Procedure for Valuing Illiquid Derivatives?](https://options.greeks.live/question/what-constitutes-a-commercially-reasonable-procedure-for-valuing-illiquid-derivatives/)
![A transparent sphere, representing a granular digital asset derivative or RFQ quote, precisely balances on a proprietary execution rail. This symbolizes high-fidelity execution within complex market microstructure, driven by rapid price discovery from an institutional-grade trading engine, optimizing capital efficiency.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-precision-1.jpg)

A commercially reasonable valuation of an illiquid derivative is a defensible price derived from a transparent, repeatable, and well-documented process.

---

## Raw Schema Data

```json
{
    "@context": "https://schema.org",
    "@type": "BreadcrumbList",
    "itemListElement": [
        {
            "@type": "ListItem",
            "position": 1,
            "name": "Home",
            "item": "https://options.greeks.live"
        },
        {
            "@type": "ListItem",
            "position": 2,
            "name": "Question",
            "item": "https://options.greeks.live/question/"
        },
        {
            "@type": "ListItem",
            "position": 3,
            "name": "What Constitutes a &#8220;Commercially Reasonable Procedure&#8221; When Obtaining Valuation Quotes?",
            "item": "https://options.greeks.live/question/what-constitutes-a-commercially-reasonable-procedure-when-obtaining-valuation-quotes/"
        }
    ]
}
```

```json
{
    "@context": "https://schema.org",
    "@type": "Organization",
    "@id": "https://greeks.live/#organization",
    "name": "Greeks.Live",
    "url": "https://greeks.live/",
    "description": "Greeks.live is the definitive toolkit for the professional options trader, dedicated to empowering our users with institutional-grade data, advanced analytics, and a comprehensive suite of trading tools designed to provide a decisive edge in the market. Every article and guide published under the Greeks.live name is a product of our deep commitment to data-driven analysis and our mission to support the global trading community.",
    "email": "support@greeks.live",
    "logo": {
        "@type": "ImageObject",
        "url": "https://options.greeks.live/wp-content/uploads/2025/07/Greeks.Live-Logo-Icon.svg"
    },
    "hasPart": [
        {
            "@type": "WebSite",
            "name": "About Us",
            "url": "https://about.greeks.live"
        },
        {
            "@type": "WebSite",
            "name": "App Download Page",
            "url": "https://about.greeks.live/#/download/basic_trade"
        },
        {
            "@type": "WebSite",
            "name": "Newcomers' Guide",
            "url": "https://twisty-sign-c8b.notion.site/Guide-for-Greeks-live-X-Deribit-Newbies-5a08a3052822427d800af6eaf3704c8d"
        },
        {
            "@type": "WebSite",
            "name": "Knowledge Base",
            "url": "https://linktr.ee/greeks.live"
        },
        {
            "@type": "WebSite",
            "name": "Option Terminology",
            "url": "https://greekslive.notion.site/88dfc00e7c584d4d8969b6302a79a12f?pvs=4"
        },
        {
            "@type": "WebSite",
            "name": "Terms of Service",
            "url": "https://greeks.live/#/tos"
        },
        {
            "@type": "WebSite",
            "name": "Disclaimer",
            "url": "https://greeks.live/#/disclaimer"
        }
    ],
    "sameAs": [
        "https://x.com/greekslive",
        "https://youtube.com/@greeks_live?si=-KjT0Lkw4WUCI0tD",
        "https://t.me/greekslive_notifications",
        "https://t.me/greekslive",
        "https://pinterest.com/greekslive/"
    ],
    "makesOffer": [
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "RFQ Platform",
                "url": "https://rfq.greeks.live",
                "description": "Execute institutional-grade block trades for crypto options and futures. This platform provides deep, over-the-counter (OTC) liquidity via a professional Request for Quote system.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Lending Tools",
                "url": "https://lend.greeks.live",
                "description": "Manage crypto lending and borrowing activities to earn yield or secure loans. This suite of tools helps users analyze interest rates and manage collateralized debt positions.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Data Lab",
                "url": "https://greeks.live/#/deribit/tools/datalab/BTC",
                "description": "Analyze historical and real-time options data with advanced metrics. This tool is designed for backtesting strategies and identifying market trends through comprehensive data visualization.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Profit & Loss Analysis (PnL)",
                "url": "https://greeks.live/#/deribit/tools/pnl_analysis",
                "description": "Track and analyze the Profit and Loss (PnL) of your options portfolio. This tool provides detailed performance metrics to help traders evaluate and refine their strategies.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Position Visualization",
                "url": "https://greeks.live/#/deribit/tools/pv/BTC",
                "description": "Visualize complex options positions and their corresponding risk profiles. This tool generates payoff diagrams to help traders intuitively understand potential profit, loss, and exposure.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Options Calculator",
                "url": "https://greeks.live/#/deribit/tools/calculator",
                "description": "Calculate the theoretical price and risk parameters ('the Greeks') of crypto options. An essential tool for pricing new trades and analyzing the sensitivity of existing positions.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Greeks.live Main Platform",
                "url": "https://greeks.live/",
                "description": "The central hub for the Greeks.live suite of professional cryptocurrency options and derivatives trading tools. Access analytics, manage positions, and explore the ecosystem.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Community Forum",
                "url": "https://t.greeks.live",
                "description": "Join the official Greeks.live community. Connect with other traders, share insights, and receive the latest updates directly from the team.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Greeks.live for Deribit",
                "url": "http://deribit.greeks.live",
                "description": "A dedicated interface for trading on the Deribit exchange. This platform leverages Greeks.live's advanced analytics and tools specifically for users of Deribit's options and futures markets.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Greeks.live for OKX",
                "url": "http://okx.greeks.live",
                "description": "A dedicated interface for trading on the OKX exchange. This platform integrates Greeks.live's powerful analytics with the OKX marketplace, focusing on its options and derivatives products.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "GLVS.AI Trading Platform",
                "url": "https://www.glvs.ai/",
                "description": "An AI-powered platform for automated crypto options trading. Leverage advanced algorithms and data-driven signals to develop and deploy sophisticated, hands-free trading strategies.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "API Testnet & Sandbox",
                "url": "https://test.greeks.live",
                "description": "A dedicated testnet environment for developers to test their API integrations and automated trading strategies. This sandbox allows for full functionality testing without risking real funds.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        }
    ],
    "subOrganization": [
        {
            "@type": "Organization",
            "name": "GreeksLive HK Co., Limited",
            "email": "support@greeks.live",
            "telephone": "+852-56418949",
            "address": {
                "@type": "PostalAddress",
                "streetAddress": "Unit 11, 27/F, K. Wah Centre, 191 Java Road",
                "addressLocality": "Hong Kong",
                "addressRegion": "North Point",
                "addressCountry": "CN",
                "postalCode": "0000"
            },
            "geo": {
                "@type": "GeoCoordinates",
                "latitude": "22.2932357",
                "longitude": "114.2022026"
            },
            "image": "https://options.greeks.live/wp-content/uploads/2025/08/Wah-Centre-Hong-Kong.jpg"
        }
    ]
}
```

```json
{
    "@context": "https://schema.org",
    "@type": "Article",
    "mainEntityOfPage": {
        "@type": "WebPage",
        "@id": "https://options.greeks.live/question/what-constitutes-a-commercially-reasonable-procedure-when-obtaining-valuation-quotes/"
    },
    "headline": "What Constitutes a \"Commercially Reasonable Procedure\" When Obtaining Valuation Quotes? \u25b4 Question",
    "description": "A commercially reasonable procedure is a defensible, documented system for deriving fair value through objective inputs and sound methodologies. \u25b4 Question",
    "url": "https://options.greeks.live/question/what-constitutes-a-commercially-reasonable-procedure-when-obtaining-valuation-quotes/",
    "datePublished": "2025-08-13T20:09:30+00:00",
    "dateModified": "2025-08-13T20:09:32+00:00",
    "articleSection": [
        "Question"
    ],
    "author": {
        "@id": "https://greeks.live/#organization"
    },
    "publisher": {
        "@id": "https://greeks.live/#organization"
    },
    "image": {
        "@type": "ImageObject",
        "url": "https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-system-optimizing-high-fidelity-block-trade-liquidity-and-multi-leg-spread-precision.jpg",
        "caption": "This abstract, precision-engineered system embodies a sophisticated institutional-grade platform for digital asset derivatives. Its architecture signifies an advanced RFQ protocol, enabling atomic settlement and optimal liquidity aggregation for complex Bitcoin options and Ethereum futures. The intersecting elements illustrate dynamic market microstructure, facilitating best execution and portfolio margin optimization. It\u2019s a core component of a Prime RFQ, mitigating counterparty risk and enhancing alpha generation through intelligent order book dynamics and pre-trade analytics."
    },
    "keywords": [
        "ASC 820",
        "Audit Trail",
        "Broker-Dealer Quotes",
        "Commercially Reasonable",
        "Fair Value",
        "Fair Value Measurement",
        "Fiduciary Duty",
        "Illiquid Assets",
        "Level 3 Inputs",
        "Price Discovery",
        "Third-Party Valuation",
        "Valuation Committee",
        "Valuation Governance",
        "Valuation Quotes"
    ]
}
```

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


---

**Original URL:** https://options.greeks.live/question/what-constitutes-a-commercially-reasonable-procedure-when-obtaining-valuation-quotes/
