# What Distinguishes a Reportable Event from a Non-Reportable One in the CAT Framework for RFQs? ▴ Question

**Published:** 2025-07-29
**Categories:** Question

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

![Teal capsule represents a private quotation for multi-leg spreads within a Prime RFQ, enabling high-fidelity institutional digital asset derivatives execution. Dark spheres symbolize aggregated inquiry from liquidity pools](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-derivatives-rfq-prime-os-high-fidelity-execution.jpg)

## Concept

The regulatory architecture of the [Consolidated Audit Trail](https://prime.greeks.live/area/consolidated-audit-trail/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (CAT) operates on a precise principle of actionability. The distinction between a reportable and a non-reportable event within the [Request for Quote](https://prime.greeks.live/area/request-for-quote/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (RFQ) protocol hinges on the transformation of a communication from an inquiry into a firm, electronically executable expression of trading interest. An RFQ itself, as a solicitation for liquidity, is an antecedent to a potential transaction and remains outside the reporting mandate.

The system’s focus is on the lifecycle of an order. Therefore, the reporting obligation activates at the moment a response to that solicitation solidifies into a tradable instrument.

![Central intersecting blue light beams represent high-fidelity execution and atomic settlement. Mechanical elements signify robust market microstructure and order book dynamics](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-engine-visualizing-market-microstructure-for-high-fidelity-alpha-generation-via-prime-os.jpg)

## The Threshold of Actionability

A response to a bilateral [price discovery](https://prime.greeks.live/area/price-discovery/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) request becomes a CAT-reportable event when it meets two primary criteria ▴ it represents a firm commitment and it is [immediately actionable](https://prime.greeks.live/area/immediately-actionable/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) by the recipient. A firm commitment is a price and size that the responder is obligated to honor. Immediate actionability means the solicitor can execute against that quote without any further confirmation or action from the responding dealer. This delineates a clear boundary.

An indicative quote, a verbal discussion over the phone, or a message requiring a final “done” from the responder all fall outside this boundary. The system is designed to capture the birth of an order, and an [actionable quote](https://prime.greeks.live/area/actionable-quote/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) is functionally identical to a new order sent to a specific counterparty.

> The CAT framework’s reporting trigger for RFQs is the conversion of a responsive quote into a firm, electronically executable order.

![Sleek metallic components with teal luminescence precisely intersect, symbolizing an institutional-grade Prime RFQ. This represents multi-leg spread execution for digital asset derivatives via RFQ protocols, ensuring high-fidelity execution, optimal price discovery, and capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-best-execution-system.jpg)

## Systemic Role of Communication Protocols

The method of transmission is a critical determinant in the reporting calculus. The CAT framework places significant weight on communications transmitted via standard electronic formats, such as the Financial Information eXchange (FIX) protocol. Such formats provide a structured, unambiguous data record that a system can interpret and act upon without manual intervention.

This structured nature is what enables a quote to be “immediately actionable.” In contrast, unstructured communications like instant messages or emails lack the systemic certainty required for automated execution and thus typically fall outside the reporting requirement, pending specific regulatory relief expirations. The protocol is the medium, and in this context, the medium defines the reportability of the message.

![Polished metallic disc on an angled spindle represents a Principal's operational framework. This engineered system ensures high-fidelity execution and optimal price discovery for institutional digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/08/high-fidelity-digital-asset-derivatives-rfq-execution-platform.jpg)

![A specialized hardware component, showcasing a robust metallic heat sink and intricate circuit board, symbolizes a Prime RFQ dedicated hardware module for institutional digital asset derivatives. It embodies market microstructure enabling high-fidelity execution via RFQ protocols for block trade and multi-leg spread](https://options.greeks.live/wp-content/uploads/2025/08/prime-os-dedicated-hardware-for-institutional-rfq-execution.jpg)

## Strategy

An institution’s strategy for engaging with off-book liquidity sourcing must be built upon a deep understanding of its [CAT reporting](https://prime.greeks.live/area/cat-reporting/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) obligations. The objective is to architect a workflow that optimizes for execution quality and information control while ensuring flawless [compliance](https://prime.greeks.live/area/compliance/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). This involves making deliberate choices about communication channels and internal system configurations to manage the regulatory footprint associated with different forms of quote solicitation.

![Sharp, intersecting elements, two light, two teal, on a reflective disc, centered by a precise mechanism. This visualizes institutional liquidity convergence for multi-leg options strategies in digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-block-trade-execution.jpg)

## Architecting Compliant Liquidity Sourcing

A firm’s operational strategy must systematically differentiate between [RFQ](https://prime.greeks.live/area/rfq/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) workflows that generate reportable events and those that do not. This requires a conscious design of communication protocols. A desk might strategically utilize both FIX-based RFQ platforms for standardized instruments and less formal channels for highly bespoke or illiquid positions. The choice of channel becomes a strategic decision, balancing the efficiency of electronic actionability against the reporting implications.

A robust supervisory framework, as mandated by [FINRA](https://prime.greeks.live/area/finra/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), is essential for this process. The firm’s [Written Supervisory Procedures](https://prime.greeks.live/area/written-supervisory-procedures/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (WSPs) must clearly define the approved protocols for different transaction types and the corresponding reporting logic for each.

> Strategic management of RFQ workflows involves balancing execution efficiency with the precise reporting requirements of the CAT NMS Plan.

![Abstract forms depict institutional liquidity aggregation and smart order routing. Intersecting dark bars symbolize RFQ protocols enabling atomic settlement for multi-leg spreads, ensuring high-fidelity execution and price discovery of digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-high-fidelity-execution-2.jpg)

## How Does Protocol Choice Impact Information Leakage?

The selection of an RFQ protocol carries direct consequences for information leakage and market impact. Fully electronic, actionable RFQs that generate reportable events create a permanent, traceable data trail within the CAT system. While this provides regulatory transparency, it also means the firm’s trading interest is recorded.

Firms must weigh this against the benefits of accessing firm liquidity. Protocols that involve manual handling or are non-actionable may offer more discretion in the short term but can introduce operational friction and may still be subject to future reporting requirements as exemptions evolve.

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

## Comparative Analysis of RFQ Workflows

The following table outlines the strategic considerations for different RFQ communication methods within the CAT framework.

| RFQ Workflow Type | Communication Protocol | CAT Reportability Status | Strategic Implication |
| --- | --- | --- | --- |
| Actionable Electronic Response | FIX Protocol | Reportable as a new order event | Provides access to firm liquidity with high execution certainty; requires robust automated reporting infrastructure. |
| Indicative Electronic Quote | FIX, API | Non-Reportable | Allows for price discovery without creating an immediate order record; requires a secondary step to place the final order. |
| Manual Response | Phone, Instant Message | Currently Exempt (subject to change) | Offers maximum discretion for complex or sensitive trades; introduces operational risk and lacks systemic audit trails. |
| RFQ Platform Inquiry | Proprietary Platform | Depends on platform’s structure | The platform provider may have reporting duties, altering the firm’s direct reporting burden. |

![An arc of interlocking, alternating pale green and dark grey segments, with black dots on light segments. This symbolizes a modular RFQ protocol for institutional digital asset derivatives, representing discrete private quotation phases or aggregated inquiry nodes](https://options.greeks.live/wp-content/uploads/2025/07/modular-rfq-protocol-segments-for-institutional-digital-asset-derivatives.jpg)

![An exposed institutional digital asset derivatives engine reveals its market microstructure. The polished disc represents a liquidity pool for price discovery](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-digital-asset-derivatives-rfq-execution-system.jpg)

## Execution

The precise execution of CAT reporting for RFQs requires that a firm’s [Order Management System](https://prime.greeks.live/area/order-management-system/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (OMS) and [Execution Management System](https://prime.greeks.live/area/execution-management-system/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (EMS) are correctly calibrated to identify and flag reportable events. The technical implementation hinges on capturing specific data fields at the moment an actionable quote response is received, treating it as the origination of a new order for reporting purposes.

![A precisely engineered system features layered grey and beige plates, representing distinct liquidity pools or market segments, connected by a central dark blue RFQ protocol hub. Transparent teal bars, symbolizing multi-leg options spreads or algorithmic trading pathways, intersect through this core, facilitating price discovery and high-fidelity execution of digital asset derivatives via an institutional-grade Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-engine-facilitating-high-fidelity-multi-leg-options-spread-execution-best-price-discovery-and-latent-liquidity-access-for-prime-brokerage.jpg)

## Technical Implementation for Reporting

When an RFQ response is identified as a reportable event, it must be submitted to the Central Repository with all the required data elements of a new order. A critical data field in this context is the solicitationFlag. This flag must be set to ‘true’ to indicate that the order originated from a solicitation.

Failure to correctly populate this flag constitutes a reporting violation. Firms must work with their technology vendors to ensure their systems can parse incoming quote messages, evaluate them against the criteria for actionability, and automatically generate the corresponding CAT report with the correct flags and timestamps.

![The abstract image visualizes a central Crypto Derivatives OS hub, precisely managing institutional trading workflows. Sharp, intersecting planes represent RFQ protocols extending to liquidity pools for options trading, ensuring high-fidelity execution and atomic settlement](https://options.greeks.live/wp-content/uploads/2025/07/rfq-protocols-for-institutional-digital-asset-derivatives-prime-os-execution.jpg)

## What Are the Core Attributes of a Reportable RFQ Response?

A firm’s compliance architecture must be configured to monitor for a specific set of attributes that define a reportable RFQ response. The system’s logic must validate the presence of these elements before triggering a reporting event.

- **Firmness** ▴ The response contains a non-indicative price and size that the sender is obligated to honor.

- **Actionability** ▴ The recipient can execute the trade through a single electronic action without further communication.

- **Electronic Format** ▴ The communication occurs over a structured channel like FIX, not via a manual method.

- **Solicitation Context** ▴ The system must link this [new order event](https://prime.greeks.live/area/new-order-event/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) back to the initial RFQ, populating the solicitationFlag correctly.

![A reflective metallic disc, symbolizing a Centralized Liquidity Pool or Volatility Surface, is bisected by a precise rod, representing an RFQ Inquiry for High-Fidelity Execution. Translucent blue elements denote Dark Pool access and Private Quotation Networks, detailing Institutional Digital Asset Derivatives Market Microstructure](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-high-fidelity-execution.jpg)

## Event Reporting Scenarios

The operational workflow for handling RFQ responses dictates the specific CAT reporting outcome. The table below details the reporting requirements for common scenarios, highlighting the critical distinctions in execution.

| Scenario | Systemic Action | CAT Event to Report | Key Data Field |
| --- | --- | --- | --- |
| Winning Actionable Quote | Solicitor executes against the received actionable quote. | New Order Event (from Responder), Order Execution (for both parties). | solicitationFlag=true |
| Non-Winning Actionable Quote | Solicitor receives but does not act on an actionable quote. | New Order Event (from Responder), Order Canceled Event (from Responder). | solicitationFlag=true |
| Indicative Quote Received | Solicitor receives a quote that is not immediately executable. | No reportable event for the quote itself. | N/A |
| Verbal Quote on Phone | Parties agree to terms over the phone. | Exempt from reporting under current relief. | N/A |

> Accurate CAT reporting execution for RFQs demands that a firm’s trading systems correctly identify actionable quotes and populate the solicitationFlag.

Firms must conduct rigorous testing of their reporting logic, especially ahead of compliance deadlines for new phases of CAT. This includes validating that both winning and non-winning actionable quotes are captured and reported correctly, as both represent firm expressions of trading interest. The failure to repair reporting errors by the T+3 deadline is a common finding in regulatory examinations and underscores the need for robust post-reporting reconciliation processes.

![A reflective sphere, bisected by a sharp metallic ring, encapsulates a dynamic cosmic pattern. This abstract representation symbolizes a Prime RFQ liquidity pool for institutional digital asset derivatives, enabling RFQ protocol price discovery and high-fidelity execution](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-institutional-digital-asset-derivatives-rfq-execution-1.jpg)

## References

- FINRA CAT, LLC. “RFQ Overview Phase 2c & 2d CAT Reporting.” CAT NMS Plan, 4 Mar. 2021.

- FINRA. “Consolidated Audit Trail (CAT).” FINRA.org, 2023.

- FINRA CAT, LLC. “CAT Reporting Technical Specifications for Industry Members.” CAT NMS Plan, 24 Jul. 2024.

- FINRA. “2022 Report on FINRA’s Examination and Risk Monitoring Program.” FINRA.org, 2022.

![A pristine white sphere, symbolizing an Intelligence Layer for Price Discovery and Volatility Surface analytics, sits on a grey Prime RFQ chassis. A dark FIX Protocol conduit facilitates High-Fidelity Execution and Smart Order Routing for Institutional Digital Asset Derivatives RFQ protocols, ensuring Best Execution](https://options.greeks.live/wp-content/uploads/2025/08/institutional-grade-digital-asset-derivatives-rfq-protocols-optimizing-high-fidelity-execution-via-prime-os-intelligence.jpg)

## Reflection

The architecture of your firm’s compliance and trading systems is a direct reflection of its strategic priorities. Understanding the nuances of the CAT framework for bilateral price discovery is foundational. The deeper challenge is to see this regulatory requirement as a design parameter for a superior operational system. How does your current workflow for sourcing liquidity not only meet but leverage these reporting structures?

The data generated through compliance can become a source of internal intelligence, refining your understanding of counterparty behavior and execution quality. The ultimate objective is a state where [regulatory compliance](https://prime.greeks.live/area/regulatory-compliance/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) and peak operational performance are two outputs of the same unified, intelligently designed system.

![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)

## Glossary

<a href="https://prime.greeks.live/area/consolidated-audit-trail/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A precise metallic central hub with sharp, grey angular blades signifies high-fidelity execution and smart order routing. Intersecting transparent teal planes represent layered liquidity pools and multi-leg spread structures, illustrating complex market microstructure for efficient price discovery within institutional digital asset derivatives RFQ protocols](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-for-high-fidelity-execution-across-market-microstructure-dynamics.jpg)

## Consolidated Audit Trail

Meaning ▴ The Consolidated Audit Trail (CAT) is a comprehensive, centralized database designed to capture and track every order, quote, and trade across US equity and options markets. </a><a href="https://prime.greeks.live/area/request-for-quote/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![An abstract digital interface features a dark circular screen with two luminous dots, one teal and one grey, symbolizing active and pending private quotation statuses within an RFQ protocol. Below, sharp parallel lines in black, beige, and grey delineate distinct liquidity pools and execution pathways for multi-leg spread strategies, reflecting market microstructure and high-fidelity execution for institutional grade digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-protocol-displaying-multi-leg-execution-status-and-optimal-liquidity-pathways.jpg)

## Request for Quote

Meaning ▴ A Request for Quote, or RFQ, constitutes a formal communication initiated by a potential buyer or seller to solicit price quotations for a specified financial instrument or block of instruments from one or more liquidity providers. </a><a href="https://prime.greeks.live/area/immediately-actionable/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A reflective, metallic platter with a central spindle and an integrated circuit board edge against a dark backdrop. This imagery evokes the core low-latency infrastructure for institutional digital asset derivatives, illustrating high-fidelity execution and market microstructure dynamics](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-rfq-execution-infrastructure-precision.jpg)

## Immediately Actionable

Meaning ▴ The term "Immediately Actionable" refers to a state of data, an insight, or a system signal that is sufficiently processed, validated, and contextualized to permit direct, automated execution of a pre-defined operational response without requiring further human deliberation or analytical processing. </a><a href="https://prime.greeks.live/area/price-discovery/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Central, interlocked mechanical structures symbolize a sophisticated Crypto Derivatives OS driving institutional RFQ protocol. Surrounding blades represent diverse liquidity pools and multi-leg spread components](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-architecture-optimizing-high-fidelity-execution-across-diverse-liquidity-pools.jpg)

## Price Discovery

Meaning ▴ Price discovery is the continuous, dynamic process by which the market determines the fair value of an asset through the collective interaction of supply and demand. </a><a href="https://prime.greeks.live/area/actionable-quote/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Intersecting sleek conduits, one with precise water droplets, a reflective sphere, and a dark blade. This symbolizes institutional RFQ protocol for high-fidelity execution, navigating market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-framework-optimizing-latent-liquidity-discovery-and-atomic-settlement-protocols.jpg)

## Actionable Quote

Meaning ▴ An Actionable Quote represents a firm, executable price and corresponding size offered by a liquidity provider, signifying a binding commitment to transact at the specified terms. </a><a href="https://prime.greeks.live/area/cat-reporting/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek Execution Management System diagonally spans segmented Market Microstructure, representing Prime RFQ for Institutional Grade Digital Asset Derivatives. It rests on two distinct Liquidity Pools, one facilitating RFQ Block Trade Price Discovery, the other a Dark Pool for Private Quotation](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-execution-optimizing-rfq-protocols-across-segmented-liquidity-pools.jpg)

## Cat Reporting

Meaning ▴ CAT Reporting, or Consolidated Audit Trail Reporting, mandates the comprehensive capture and reporting of all order and trade events across US equity and and options markets. </a><a href="https://prime.greeks.live/area/compliance/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A precise teal instrument, symbolizing high-fidelity execution and price discovery, intersects angular market microstructure elements. These structured planes represent a Principal's operational framework for digital asset derivatives, resting upon a reflective liquidity pool for aggregated inquiry via RFQ protocols](https://options.greeks.live/wp-content/uploads/2025/07/precision-engineered-institutional-digital-asset-derivatives-trading-platform-underpinning-rfq-protocol-liquidity-aggregation-and-high-fidelity-execution.jpg)

## Compliance

Meaning ▴ Compliance, within the context of institutional digital asset derivatives, signifies the rigorous adherence to established regulatory mandates, internal corporate policies, and industry best practices governing financial operations. </a><a href="https://prime.greeks.live/area/rfq/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A luminous central hub with radiating arms signifies an institutional RFQ protocol engine. It embodies seamless liquidity aggregation and high-fidelity execution for multi-leg spread strategies](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-hub-for-optimal-liquidity-aggregation.jpg)

## Rfq

Meaning ▴ Request for Quote (RFQ) is a structured communication protocol enabling a market participant to solicit executable price quotations for a specific instrument and quantity from a selected group of liquidity providers. </a><a href="https://prime.greeks.live/area/written-supervisory-procedures/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Precision-engineered metallic discs, interconnected by a central spindle, against a deep void, symbolize the core architecture of an Institutional Digital Asset Derivatives RFQ protocol. This setup facilitates private quotation, robust portfolio margin, and high-fidelity execution, optimizing market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-core-infrastructure.jpg)

## Written Supervisory Procedures

Meaning ▴ Written Supervisory Procedures represent the formal documentation outlining the operational controls and compliance obligations within a regulated financial entity. </a><a href="https://prime.greeks.live/area/finra/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![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)

## Finra

Meaning ▴ FINRA, the Financial Industry Regulatory Authority, functions as the largest independent regulator for all securities firms conducting business in the United States. </a><a href="https://prime.greeks.live/area/execution-management-system/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A transparent, blue-tinted sphere, anchored to a metallic base on a light surface, symbolizes an RFQ inquiry for digital asset derivatives. A fine line represents low-latency FIX Protocol for high-fidelity execution, optimizing price discovery in market microstructure via Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-rfq-protocol-sphere-high-fidelity-execution-gateway.jpg)

## Execution Management System

Meaning ▴ An Execution Management System (EMS) is a specialized software application engineered to facilitate and optimize the electronic execution of financial trades across diverse venues and asset classes. </a><a href="https://prime.greeks.live/area/order-management-system/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![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)

## Order Management System

Meaning ▴ A robust Order Management System is a specialized software application engineered to oversee the complete lifecycle of financial orders, from their initial generation and routing to execution and post-trade allocation. </a><a href="https://prime.greeks.live/area/new-order-event/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Two interlocking textured bars, beige and blue, abstractly represent institutional digital asset derivatives platforms. A blue sphere signifies RFQ protocol initiation, reflecting latent liquidity for atomic settlement](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-for-prime-os-execution.jpg)

## New Order Event

Meaning ▴ A New Order Event signifies the precise digital instruction transmitted from an institutional execution system to a market venue or broker's gateway, initiating the placement of a novel trading instruction. </a><a href="https://prime.greeks.live/area/regulatory-compliance/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, multi-component device in dark blue and beige, symbolizing an advanced institutional digital asset derivatives platform. The central sphere denotes a robust liquidity pool for aggregated inquiry](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-execution-platform-system.jpg)

## Regulatory Compliance

Meaning ▴ Adherence to legal statutes, regulatory mandates, and internal policies governing financial operations, especially in institutional digital asset derivatives. </a>

**Tags:** [Written Supervisory Procedures](https://options.greeks.live/area/written-supervisory-procedures/), [Audit Trail](https://options.greeks.live/area/audit-trail/), [FIX Protocol](https://options.greeks.live/area/fix-protocol/), [CAT Reporting](https://options.greeks.live/area/cat-reporting/), [Immediately Actionable](https://options.greeks.live/area/immediately-actionable/), [Market Microstructure](https://options.greeks.live/area/market-microstructure/)	

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### [How Can Technology Be Used to Automate Capital Allocation Based on Quote Activity?](https://options.greeks.live/question/how-can-technology-be-used-to-automate-capital-allocation-based-on-quote-activity/)
![A precision-engineered teal metallic mechanism, featuring springs and rods, connects to a light U-shaped interface. This represents a core RFQ protocol component enabling automated price discovery and high-fidelity execution. It signifies a Principal's operational framework for institutional block trades, multi-leg spreads, and optimizing latency within a Crypto Derivatives OS.](https://options.greeks.live/wp-content/uploads/2025/07/rfq-execution-engine-component-for-institutional-digital-asset-derivatives.jpg)

Automated capital allocation uses quote data to transform trade execution from a manual art into a systematic, data-driven science.

- 
### [What Are the Specific Record-Keeping Requirements for Demonstrating Best Execution in an RFQ Trade?](https://options.greeks.live/question/what-are-the-specific-record-keeping-requirements-for-demonstrating-best-execution-in-an-rfq-trade/)
![A complex sphere, split blue implied volatility surface and white, balances on a beam. A transparent sphere acts as fulcrum. This illustrates institutional digital asset derivative RFQ execution, enabling optimal price discovery, leveraging Prime RFQ for high-fidelity execution across fragmented market microstructure and dark liquidity pools.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-balancing-liquidity.jpg)

A firm must create a verifiable, time-stamped narrative of the RFQ lifecycle to prove diligent execution.

- 
### [What Are the Technological Requirements for Integrating a Firm Quote RFQ System?](https://options.greeks.live/question/what-are-the-technological-requirements-for-integrating-a-firm-quote-rfq-system/)
![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)

An integrated RFQ system codifies bilateral price discovery, creating a secure, auditable, and efficient liquidity sourcing protocol.

- 
### [How Does the SEC’s Proposed Reclassification of RFQ Platforms Impact TCA and Compliance Workflows?](https://options.greeks.live/question/how-does-the-secs-proposed-reclassification-of-rfq-platforms-impact-tca-and-compliance-workflows/)
![Sleek, dark components with a bright turquoise data stream symbolize a Principal OS enabling high-fidelity execution for institutional digital asset derivatives. This infrastructure leverages secure RFQ protocols, ensuring precise price discovery and minimal slippage across aggregated liquidity pools, vital for multi-leg spreads.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-rfq-protocol-systemic-execution-interface.jpg)

The SEC's reclassification of RFQ platforms mandates a systemic shift, transforming ephemeral quotes into a permanent data substrate that redefines TCA and compliance workflows.

- 
### [Can a Hybrid Model Combining CLOB and RFQ Features Provide Superior Price Discovery for Illiquid Options?](https://options.greeks.live/question/can-a-hybrid-model-combining-clob-and-rfq-features-provide-superior-price-discovery-for-illiquid-options/)
![Intersecting translucent aqua blades, etched with algorithmic logic, symbolize multi-leg spread strategies and high-fidelity execution. Positioned over a reflective disk representing a deep liquidity pool, this illustrates advanced RFQ protocols driving precise price discovery within institutional digital asset derivatives market microstructure.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-optimized-algorithmic-execution-microstructure-for-price-discovery.jpg)

A hybrid model provides superior price discovery by using RFQ to establish a firm baseline and the CLOB for risk-free price improvement.

- 
### [How Does the Consolidated Audit Trail Differentiate between an IOI Message and an Actionable RFQ Response?](https://options.greeks.live/question/how-does-the-consolidated-audit-trail-differentiate-between-an-ioi-message-and-an-actionable-rfq-response/)
![A glowing, intricate blue sphere, representing the Intelligence Layer for Price Discovery and Market Microstructure, rests precisely on robust metallic supports. This visualizes a Prime RFQ enabling High-Fidelity Execution within a deep Liquidity Pool via Algorithmic Trading and RFQ protocols.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-core-intelligence-layer-for-rfq.jpg)

CAT distinguishes IOIs as non-firm inquiries from actionable RFQ responses, which are firm orders triggering reporting.

- 
### [Can an RFQ Be Used for Options on Futures Contracts?](https://options.greeks.live/question/can-an-rfq-be-used-for-options-on-futures-contracts/)
![A precision metallic dial on a multi-layered interface embodies an institutional RFQ engine. The translucent panel suggests an intelligence layer for real-time price discovery and high-fidelity execution of digital asset derivatives, optimizing capital efficiency for block trades within complex market microstructure.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-high-fidelity-execution-system.jpg)

Yes, an RFQ is a core mechanism for trading options on futures, enabling discreet, competitive price discovery for large or complex strategies.

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---

**Original URL:** https://options.greeks.live/question/what-distinguishes-a-reportable-event-from-a-non-reportable-one-in-the-cat-framework-for-rfqs/
