# What Is the Role of Counterparty Due Diligence in a Best Execution Policy? ▴ Question

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

---

![Abstract geometric forms in dark blue, beige, and teal converge around a metallic gear, symbolizing a Prime RFQ for institutional digital asset derivatives. A sleek bar extends, representing high-fidelity execution and precise delta hedging within a multi-leg spread framework, optimizing capital efficiency via RFQ protocols](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-digital-asset-derivatives-rfq-execution-engine-architecture.jpg)

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

## Concept

[Counterparty due diligence](https://prime.greeks.live/area/counterparty-due-diligence/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) represents a foundational pillar within a firm’s [best execution policy](https://prime.greeks.live/area/best-execution-policy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), serving as a critical input to the overarching obligation to deliver the most favorable terms for a client. It is the systematic process of verifying a potential counterparty’s credentials, financial stability, and operational integrity before establishing a trading relationship. This process moves beyond a simple check-the-box exercise; it is an analytical deep dive into the counterparty’s ability to meet its obligations, not just at the point of trade, but through to settlement and beyond. The insights gleaned from this diligence directly inform the selection of execution venues and counterparties, ensuring that the firm is not only seeking the best price but also managing the multifaceted risks inherent in any financial transaction.

> A rigorous counterparty due diligence process is the bedrock upon which a resilient and effective best execution policy is built.

The imperative for thorough counterparty [due diligence](https://prime.greeks.live/area/due-diligence/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) is underscored by a complex and ever-evolving regulatory landscape. In Europe, the Markets in Financial Instruments Directive II (MiFID II) imposes a stringent [best execution framework](https://prime.greeks.live/area/best-execution-framework/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) that compels investment firms to take all sufficient steps to obtain the best possible result for their clients. This obligation extends beyond the simple consideration of price and costs to include factors such as speed, likelihood of execution and settlement, size, and nature of the order.

Within this context, the selection of counterparties is not a peripheral concern but a core component of the [best execution](https://prime.greeks.live/area/best-execution/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) analysis. A firm cannot claim to be acting in its client’s best interest if it has not taken adequate steps to ensure that its chosen counterparties are reliable, financially sound, and operationally robust.

Similarly, in the United States, the [Financial Industry Regulatory Authority](https://prime.greeks.live/area/financial-industry-regulatory-authority/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (FINRA) Rule 5310 mandates that firms use “reasonable diligence” to ascertain the best market for a security and to buy or sell in that market so that the price to the customer is as favorable as possible under prevailing market conditions. The rule explicitly lists several factors to be considered in this “reasonable diligence” inquiry, including the character of the market for the security, the size and type of the transaction, and the accessibility of quotations. While not as explicit as [MiFID II](https://prime.greeks.live/area/mifid-ii/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) in its language on counterparty due diligence, the principle is the same ▴ a firm’s duty of best execution is intrinsically linked to its choice of trading partners. A failure to properly vet a counterparty can lead to execution failures, settlement issues, and ultimately, client harm, all of which would be considered a breach of the firm’s best execution obligations.

![Modular institutional-grade execution system components reveal luminous green data pathways, symbolizing high-fidelity cross-asset connectivity. This depicts intricate market microstructure facilitating RFQ protocol integration for atomic settlement of digital asset derivatives within a Principal's operational framework, underpinned by a Prime RFQ intelligence layer](https://options.greeks.live/wp-content/uploads/2025/07/modular-high-fidelity-execution-architecture-for-institutional-digital-asset-derivatives-rfq-protocol-integration-and-principals-operational-framework-optimization.jpg)

![A sharp, metallic instrument precisely engages a textured, grey object. This symbolizes High-Fidelity Execution within institutional RFQ protocols for Digital Asset Derivatives, visualizing precise Price Discovery, minimizing Slippage, and optimizing Capital Efficiency via Prime RFQ for Best Execution](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-rfq-protocols-precision-execution-prime-os-liquidity.jpg)

## Strategy

A strategic approach to counterparty due diligence within a best execution framework involves the development of a comprehensive and risk-based program for assessing and monitoring counterparties. This program should be tailored to the firm’s specific business model, client base, and the types of financial instruments it trades. The goal is to create a systematic and repeatable process that allows the firm to make informed decisions about which counterparties to trade with, and to continuously monitor those relationships for any signs of deterioration.

![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)

## The Three Pillars of a Counterparty Due Diligence Strategy

A robust counterparty due diligence strategy can be built upon three key pillars ▴ initial onboarding, [ongoing monitoring](https://prime.greeks.live/question/what-are-the-primary-responsibilities-of-a-broker-dealer-in-the-ongoing-monitoring-of-its-control-locations/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), and a risk-based approach. Each of these pillars is essential for creating a comprehensive and effective program.

- **Initial Onboarding** ▴ This is the first line of defense. Before any trading relationship is established, a firm must conduct a thorough due diligence review of the potential counterparty. This review should cover a wide range of areas, including the counterparty’s financial health, regulatory history, operational capabilities, and reputation. The information gathered during this initial onboarding process will form the basis for the firm’s decision on whether to approve the counterparty for trading.

- **Ongoing Monitoring** ▴ [Counterparty risk](https://prime.greeks.live/area/counterparty-risk/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) is not static. A counterparty that is financially sound today may face challenges tomorrow. Therefore, it is essential to have a process for ongoing monitoring of all approved counterparties. This monitoring should be conducted at regular intervals and should be designed to detect any changes in the counterparty’s risk profile. This may include reviewing financial statements, tracking regulatory filings, and staying abreast of any news or events that could impact the counterparty.

- **Risk-Based Approach** ▴ Not all counterparties pose the same level of risk. A large, well-established financial institution is likely to be less risky than a small, newly formed proprietary trading firm. Therefore, a firm’s due diligence efforts should be tailored to the level of risk posed by each counterparty. This means that more intensive due diligence should be conducted on higher-risk counterparties, while a more streamlined approach may be appropriate for lower-risk counterparties.

> A dynamic, risk-based approach to counterparty due diligence is essential for navigating the complexities of modern financial markets.

![Abstract spheres depict segmented liquidity pools within a unified Prime RFQ for digital asset derivatives. Intersecting blades symbolize precise RFQ protocol negotiation, price discovery, and high-fidelity execution of multi-leg spread strategies, reflecting market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-1.jpg)

## Integrating Due Diligence with Best Execution

The insights gained from the counterparty [due diligence process](https://prime.greeks.live/area/due-diligence-process/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) must be integrated into the firm’s best execution framework. This means that the information gathered on each counterparty should be used to inform the firm’s order routing decisions. For example, a firm may choose to route more order flow to counterparties that have a strong financial position and a clean regulatory record, while limiting its exposure to counterparties that are deemed to be higher risk.

The following table provides an example of how a firm might use a quantitative scoring model to assess counterparty risk:

### Counterparty Risk Scoring Model

| Risk Category | Data Points | Weighting | Score (1-5) | Weighted Score |
| --- | --- | --- | --- | --- |
| Financial Stability | Credit rating, capital adequacy ratio, leverage ratio | 40% | 4 | 1.6 |
| Regulatory History | Regulatory fines, enforcement actions, compliance record | 30% | 5 | 1.5 |
| Operational Capabilities | Settlement efficiency, technology infrastructure, business continuity plan | 20% | 3 | 0.6 |
| Reputation | Adverse media, market perception, industry standing | 10% | 4 | 0.4 |
| Total | | 100% | | 4.1 |

In this example, the firm has assigned a weighting to each risk category based on its perceived importance. The firm then scores each counterparty on a scale of 1 to 5 for each category, with 5 being the best possible score. The weighted scores are then summed to arrive at a total counterparty risk score. This score can then be used to rank counterparties and to inform the firm’s order routing decisions.

![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)

![Abstract geometric forms converge around a central RFQ protocol engine, symbolizing institutional digital asset derivatives trading. Transparent elements represent real-time market data and algorithmic execution paths, while solid panels denote principal liquidity and robust counterparty relationships](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-core-for-high-fidelity-execution.jpg)

## Execution

The execution of a counterparty due [diligence program](https://prime.greeks.live/question/what-are-the-core-components-of-a-customer-due-diligence-program/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) requires a well-defined process, clear roles and responsibilities, and the right technology and tools. The following sections provide a detailed overview of the key components of a successful counterparty due diligence program.

![A sleek, futuristic object with a glowing line and intricate metallic core, symbolizing a Prime RFQ for institutional digital asset derivatives. It represents a sophisticated RFQ protocol engine enabling high-fidelity execution, liquidity aggregation, atomic settlement, and capital efficiency for multi-leg spreads](https://options.greeks.live/wp-content/uploads/2025/07/advanced-institutional-digital-asset-derivatives-rfq-protocol-execution-engine-for-optimal-liquidity-aggregation-and-atomic-settlement.jpg)

## The Due Diligence Process

The due [diligence process](https://prime.greeks.live/question/how-does-operational-due-diligence-differ-from-financial-due-diligence/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) should be structured and systematic, with clear steps and defined timelines. The following is a typical due diligence process for a new counterparty:

- **Information Gathering** ▴ The first step is to gather all relevant information about the potential counterparty. This may include financial statements, regulatory filings, corporate governance documents, and any other publicly available information.

- **[Due Diligence Questionnaire](https://prime.greeks.live/area/due-diligence-questionnaire/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (DDQ)** ▴ The firm should send a detailed DDQ to the potential counterparty to gather more specific information about its business, operations, and [risk management](https://prime.greeks.live/area/risk-management/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) practices.

- **Verification** ▴ The information provided by the counterparty should be independently verified. This may involve cross-referencing information with public records, conducting background checks on key personnel, and speaking with references.

- **[Risk Assessment](https://prime.greeks.live/area/risk-assessment/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite)** ▴ Once all the information has been gathered and verified, the firm should conduct a comprehensive risk assessment of the counterparty. This should include an analysis of the counterparty’s [financial stability](https://prime.greeks.live/area/financial-stability/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), regulatory history, operational capabilities, and reputation.

- **Approval** ▴ Based on the results of the risk assessment, the firm will decide whether to approve the counterparty for trading. This decision should be documented and approved by the appropriate senior management.

![A polished glass sphere reflecting diagonal beige, black, and cyan bands, rests on a metallic base against a dark background. This embodies RFQ-driven Price Discovery and High-Fidelity Execution for Digital Asset Derivatives, optimizing Market Microstructure and mitigating Counterparty Risk via Prime RFQ Private Quotation](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-best-execution-protocol.jpg)

## The Due Diligence Questionnaire

The DDQ is a critical component of the due diligence process. It should be designed to gather all the information necessary to conduct a thorough risk assessment of the counterparty. The following table provides an example of the types of questions that might be included in a DDQ:

### Sample Due Diligence Questionnaire

| Section | Sample Questions |
| --- | --- |
| Corporate Structure and Governance | – Provide a copy of your articles of incorporation and bylaws. – List all directors and senior officers, along with their biographies. – Describe your corporate governance structure and any relevant committees. |
| Financial Information | – Provide your last three years of audited financial statements. – What is your current credit rating from a major rating agency? – Describe your capital adequacy and liquidity management policies. |
| Regulatory and Compliance | – Are you regulated by any financial authorities? If so, please list them. – Have you been the subject of any regulatory investigations or enforcement actions in the past five years? – Please provide a copy of your anti-money laundering (AML) and sanctions compliance policies. |
| Operational and Technology | – Describe your trade processing and settlement procedures. – What technology platforms do you use for trading and risk management? – Please provide a copy of your business continuity and disaster recovery plans. |

> A well-designed DDQ is an invaluable tool for gathering the information needed to make informed decisions about counterparties.

![A sophisticated institutional-grade device featuring a luminous blue core, symbolizing advanced price discovery mechanisms and high-fidelity execution for digital asset derivatives. This intelligence layer supports private quotation via RFQ protocols, enabling aggregated inquiry and atomic settlement within a Prime RFQ framework](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-prime-os-core-intelligence.jpg)

## Technology and Tools

Technology can play a crucial role in streamlining the counterparty due diligence process. There are a number of software solutions available that can help firms to automate the information gathering process, manage DDQs, and track ongoing monitoring activities. These tools can help to improve the efficiency and effectiveness of the due diligence process, while also providing a clear audit trail of all due diligence activities.

In addition to specialized due diligence software, firms can also leverage other technology tools to enhance their counterparty risk management capabilities. For example, data analytics tools can be used to analyze large datasets and to identify potential red flags or anomalies. Social media monitoring tools can be used to track news and events that could impact a counterparty’s reputation. By embracing technology, firms can build a more robust and sophisticated counterparty due diligence program.

![A sleek spherical mechanism, representing a Principal's Prime RFQ, features a glowing core for real-time price discovery. An extending plane symbolizes high-fidelity execution of institutional digital asset derivatives, enabling optimal liquidity, multi-leg spread trading, and capital efficiency through advanced RFQ protocols](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-platform-for-high-fidelity-execution-and-optimal-liquidity.jpg)

## References

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

- Financial Industry Regulatory Authority. (2021). FINRA Rule 5310 ▴ Best Execution and Interpositioning.

- KPMG. (2012). Counterparty Due Diligence.

- Barclays. (2022). MiFID Best Execution Policy ▴ Client Summary.

- Partners Group. (2023). Best Execution Directive.

- BCS Global Markets. (2021). Best Execution Policy.

- 21 Analytics. (2024). What to Consider When Performing Counterparty Due Diligence.

- Bank for International Settlements. (2023). Guidelines for counterparty credit risk management.

- McKinsey & Company. (2023). Moving from crisis to reform ▴ Examining the state of counterparty credit risk.

- Latham & Watkins LLP. (2018). Global Developments on Best Execution.

![An advanced digital asset derivatives system features a central liquidity pool aperture, integrated with a high-fidelity execution engine. This Prime RFQ architecture supports RFQ protocols, enabling block trade processing and price discovery](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-rfq-protocol-execution-system-architecture.jpg)

## Reflection

The integration of a robust counterparty due diligence program into a best [execution policy](https://prime.greeks.live/area/execution-policy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) is not merely a matter of [regulatory compliance](https://prime.greeks.live/area/regulatory-compliance/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite); it is a strategic imperative for any firm that seeks to operate with integrity and to protect the interests of its clients. The framework outlined in this guide provides a roadmap for building such a program, but it is by no means exhaustive. The financial markets are constantly evolving, and so too must the approach to risk management. The most successful firms will be those that are able to adapt to this changing landscape, to embrace new technologies, and to continuously refine their processes for assessing and managing counterparty risk.

Ultimately, the goal is to create a culture of risk awareness that permeates every level of the organization, from the front-line traders to the senior management. It is this cultural shift, more than any single policy or procedure, that will provide the greatest protection against the unforeseen risks that lie ahead.

![The image depicts an advanced intelligent agent, representing a principal's algorithmic trading system, navigating a structured RFQ protocol channel. This signifies high-fidelity execution within complex market microstructure, optimizing price discovery for institutional digital asset derivatives while minimizing latency and slippage across order book dynamics](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-optimizing-market-microstructure-for-principal-trading-intelligence-layer.jpg)

## Glossary

<a href="https://prime.greeks.live/area/counterparty-due-diligence/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Intricate blue conduits and a central grey disc depict a Prime RFQ for digital asset derivatives. A teal module facilitates RFQ protocols and private quotation, ensuring high-fidelity execution and liquidity aggregation within an institutional framework and complex market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-rfq-engine-for-digital-asset-derivatives-best-execution-1.jpg)

## Counterparty Due Diligence

Meaning ▴ Counterparty Due Diligence refers to the systematic process of evaluating the financial stability, operational capabilities, and regulatory compliance of an entity with which an institution intends to conduct business. </a><a href="https://prime.greeks.live/area/best-execution-policy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Abstract intersecting beams with glowing channels precisely balance dark spheres. This symbolizes institutional RFQ protocols for digital asset derivatives, enabling high-fidelity execution, optimal price discovery, and capital efficiency within complex market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-derivatives-rfq-best-execution-prime-os-infrastructure.jpg)

## Best Execution Policy

Meaning ▴ The Best Execution Policy defines the obligation for a broker-dealer or trading firm to execute client orders on terms most favorable to the client. </a><a href="https://prime.greeks.live/area/best-execution-framework/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Abstract, sleek components, a dark circular disk and intersecting translucent blade, represent the precise Market Microstructure of an Institutional Digital Asset Derivatives RFQ engine. It embodies High-Fidelity Execution, Algorithmic Trading, and optimized Price Discovery within a robust Crypto Derivatives OS](https://options.greeks.live/wp-content/uploads/2025/07/principals-rfq-system-for-digital-asset-derivatives-execution.jpg)

## Best Execution Framework

Meaning ▴ The Best Execution Framework defines a structured methodology for achieving the most advantageous outcome for client orders, considering price, cost, speed, likelihood of execution and settlement, order size, and any other relevant considerations. </a><a href="https://prime.greeks.live/area/due-diligence/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A luminous central hub, representing a dynamic liquidity pool, is bisected by two transparent, sharp-edged planes. This visualizes intersecting RFQ protocols and high-fidelity algorithmic execution within institutional digital asset derivatives market microstructure, enabling precise price discovery](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-rfq-execution-protocols-microstructure-engine.jpg)

## Due Diligence

Meaning ▴ Due diligence refers to the systematic investigation and verification of facts pertaining to a target entity, asset, or counterparty before a financial commitment or strategic decision is executed. </a><a href="https://prime.greeks.live/area/best-execution/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Close-up of intricate mechanical components symbolizing a robust Prime RFQ for institutional digital asset derivatives. These precision parts reflect market microstructure and high-fidelity execution within an RFQ protocol framework, ensuring capital efficiency and optimal price discovery for Bitcoin options](https://options.greeks.live/wp-content/uploads/2025/07/engineered-core-systems-driving-institutional-digital-asset-derivatives-rfq-protocol-execution.jpg)

## Best Execution

Meaning ▴ Best Execution is the obligation to obtain the most favorable terms reasonably available for a client's order. </a><a href="https://prime.greeks.live/area/financial-industry-regulatory-authority/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A reflective surface supports a sharp metallic element, stabilized by a sphere, alongside translucent teal prisms. This abstractly represents institutional-grade digital asset derivatives RFQ protocol price discovery within a Prime RFQ, emphasizing high-fidelity execution and liquidity pool optimization](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-derivatives-rfq-prime-os-microstructure-optimization.jpg)

## Financial Industry Regulatory Authority

Meaning ▴ The Financial Industry Regulatory Authority, commonly known as FINRA, operates as the largest independent regulator for all securities firms conducting business with the public in the United States. </a><a href="https://prime.greeks.live/area/mifid-ii/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![An abstract metallic circular interface with intricate patterns visualizes an institutional grade RFQ protocol for block trade execution. A central pivot holds a golden pointer with a transparent liquidity pool sphere and a blue pointer, depicting market microstructure optimization and high-fidelity execution for multi-leg spread price discovery](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-derivatives-rfq-market-microstructure-optimization.jpg)

## Mifid Ii

Meaning ▴ MiFID II, the Markets in Financial Instruments Directive II, constitutes a comprehensive regulatory framework enacted by the European Union to govern financial markets, investment firms, and trading venues. </a><a href="https://prime.greeks.live/question/what-are-the-primary-responsibilities-of-a-broker-dealer-in-the-ongoing-monitoring-of-its-control-locations/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A beige spool feeds dark, reflective material into an advanced processing unit, illuminated by a vibrant blue light. This depicts high-fidelity execution of institutional digital asset derivatives through a Prime RFQ, enabling precise price discovery for aggregated RFQ inquiries within complex market microstructure, ensuring atomic settlement](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-engine-prime-os-3.jpg)

## Ongoing Monitoring

A broker-dealer's continuous monitoring of control locations is the architectural safeguard ensuring client assets are operationally segregated. </a><a href="https://prime.greeks.live/area/counterparty-risk/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Robust metallic infrastructure symbolizes Prime RFQ for High-Fidelity Execution in Market Microstructure. An overlaid translucent teal prism represents RFQ for Price Discovery, optimizing Liquidity Pool access, Multi-Leg Spread strategies, and Portfolio Margin efficiency](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-engine-prime-os.jpg)

## Counterparty Risk

Meaning ▴ Counterparty risk denotes the potential for financial loss stemming from a counterparty's failure to fulfill its contractual obligations in a transaction. </a><a href="https://prime.greeks.live/area/due-diligence-process/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, pointed object, merging light and dark modular components, embodies advanced market microstructure for digital asset derivatives. Its precise form represents high-fidelity execution, price discovery via RFQ protocols, emphasizing capital efficiency, institutional grade alpha generation](https://options.greeks.live/wp-content/uploads/2025/07/institutional-grade-digital-asset-rfq-execution-system-microstructure.jpg)

## Due Diligence Process

Meaning ▴ The Due Diligence Process constitutes a systematic, comprehensive investigative protocol preceding significant transactional or strategic commitments within the institutional digital asset derivatives domain. </a><a href="https://prime.greeks.live/question/what-are-the-core-components-of-a-customer-due-diligence-program/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Abstract structure combines opaque curved components with translucent blue blades, a Prime RFQ for institutional digital asset derivatives. It represents market microstructure optimization, high-fidelity execution of multi-leg spreads via RFQ protocols, ensuring best execution and capital efficiency across liquidity pools](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-optimizing-market-microstructure-for-high-fidelity-execution-best-execution-price-discovery-across-liquidity-pools-and-prime-os.jpg)

## Diligence Program

A Customer Due Diligence program is the data architecture that quantifies counterparty risk to ensure institutional integrity. </a><a href="https://prime.greeks.live/question/how-does-operational-due-diligence-differ-from-financial-due-diligence/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sophisticated control panel, featuring concentric blue and white segments with two teal oval buttons. This embodies an institutional RFQ Protocol interface, facilitating High-Fidelity Execution for Private Quotation and Aggregated Inquiry](https://options.greeks.live/wp-content/uploads/2025/07/institutional-grade-rfq-protocol-interface-for-digital-asset-derivatives-execution.jpg)

## Diligence Process

Financial diligence verifies an asset's recorded value; operational diligence assesses its system's potential to create future value. </a><a href="https://prime.greeks.live/area/due-diligence-questionnaire/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Two sharp, intersecting blades, one white, one blue, represent precise RFQ protocols and high-fidelity execution within complex market microstructure. Behind them, translucent wavy forms signify dynamic liquidity pools, multi-leg spreads, and volatility surfaces](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-optimized-liquidity-aggregation-principal-prime-os-intelligence-layer.jpg)

## Due Diligence Questionnaire

Meaning ▴ The Due Diligence Questionnaire, or DDQ, represents a formalized, structured instrument engineered for the systematic collection of critical operational, financial, and compliance information from a prospective counterparty or service provider within the institutional digital asset ecosystem. </a><a href="https://prime.greeks.live/area/risk-management/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![The image depicts two intersecting structural beams, symbolizing a robust Prime RFQ framework for institutional digital asset derivatives. These elements represent interconnected liquidity pools and execution pathways, crucial for high-fidelity execution and atomic settlement within market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-cross-market-execution-architecture-for-digital-assets.jpg)

## Risk Management

Meaning ▴ Risk Management is the systematic process of identifying, assessing, and mitigating potential financial exposures and operational vulnerabilities within an institutional trading framework. </a><a href="https://prime.greeks.live/area/financial-stability/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sophisticated, multi-layered trading interface, embodying an Execution Management System EMS, showcases institutional-grade digital asset derivatives execution. Its sleek design implies high-fidelity execution and low-latency processing for RFQ protocols, enabling price discovery and managing multi-leg spreads with capital efficiency across diverse liquidity pools](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-trading-platform-market-microstructure.jpg)

## Financial Stability

Meaning ▴ Financial Stability denotes a state where the financial system effectively facilitates the allocation of resources, absorbs economic shocks, and maintains continuous, predictable operations without significant disruptions that could impede real economic activity. </a><a href="https://prime.greeks.live/area/risk-assessment/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A precise metallic cross, symbolizing principal trading and multi-leg spread structures, rests on a dark, reflective market microstructure surface. Glowing algorithmic trading pathways illustrate high-fidelity execution and latency optimization for institutional digital asset derivatives via private quotation](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-protocol-execution-architecture.jpg)

## Risk Assessment

Meaning ▴ Risk Assessment represents the systematic process of identifying, analyzing, and evaluating potential financial exposures and operational vulnerabilities inherent within an institutional digital asset trading framework. </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">
![Stacked, glossy modular components depict an institutional-grade Digital Asset Derivatives platform. Layers signify RFQ protocol orchestration, high-fidelity execution, and liquidity aggregation](https://options.greeks.live/wp-content/uploads/2025/07/layered-digital-asset-derivatives-rfq-protocol-stack-for-prime-brokerage.jpg)

## Regulatory Compliance

Meaning ▴ Adherence to legal statutes, regulatory mandates, and internal policies governing financial operations, especially in institutional digital asset derivatives. </a><a href="https://prime.greeks.live/area/execution-policy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Intersecting concrete structures symbolize the robust Market Microstructure underpinning Institutional Grade Digital Asset Derivatives. Dynamic spheres represent Liquidity Pools and Implied Volatility](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-framework-optimizing-rfq-execution-and-liquidity-for-principal-trading.jpg)

## Execution Policy

Meaning ▴ An Execution Policy defines a structured set of rules and computational logic governing the handling and execution of financial orders within a trading system. </a>

**Tags:** [Risk Assessment](https://options.greeks.live/area/risk-assessment/), [Best Execution Policy](https://options.greeks.live/area/best-execution-policy/), [Due Diligence Process](https://options.greeks.live/area/due-diligence-process/), [FINRA Rule 5310](https://options.greeks.live/area/finra-rule-5310/), [MiFID II](https://options.greeks.live/area/mifid-ii/), [Counterparty Due Diligence](https://options.greeks.live/area/counterparty-due-diligence/)	

## Discover More

- 
### [What Are the Key Differences between Proving Best Execution and Commercial Reasonableness?](https://options.greeks.live/question/what-are-the-key-differences-between-proving-best-execution-and-commercial-reasonableness/)
![A central glowing core within metallic structures symbolizes an Institutional Grade RFQ engine. This Intelligence Layer enables optimal Price Discovery and High-Fidelity Execution for Digital Asset Derivatives, streamlining Block Trade and Multi-Leg Spread Atomic Settlement.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-microstructure-core.jpg)

Best Execution is the forensic proof of a trade's quality; Commercial Reasonableness is the strategic justification of its total cost.

- 
### [How Should a Best Execution Committee Document Its “Regular and Rigorous” Reviews for Regulators?](https://options.greeks.live/question/how-should-a-best-execution-committee-document-its-regular-and-rigorous-reviews-for-regulators/)
![A precision execution pathway with an intelligence layer for price discovery, processing market microstructure data. A reflective block trade sphere signifies private quotation within a dark pool. This visualizes high-fidelity execution and capital efficiency for institutional digital asset derivatives via RFQ protocols.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-precision-execution.jpg)

A Best Execution Committee's documentation must form a defensible, data-driven narrative of its systematic process for regulatory review.

- 
### [What Are the Key Differences in Best Execution Requirements between MiFID II and FINRA?](https://options.greeks.live/question/what-are-the-key-differences-in-best-execution-requirements-between-mifid-ii-and-finra/)
![A dual-toned cylindrical component features a central transparent aperture revealing intricate metallic wiring. This signifies a core RFQ processing unit for Digital Asset Derivatives, enabling rapid Price Discovery and High-Fidelity Execution. It embodies an advanced Prime RFQ component, optimizing Liquidity Pool access and Market Microstructure via Algorithmic Trading.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-core-best-execution-prime-os.jpg)

MiFID II demands demonstrable "all sufficient steps" via public data, while FINRA requires "reasonable diligence" proven through internal reviews.

- 
### [How Does MiFID II Define the Scope of Best Execution Differently than FINRA?](https://options.greeks.live/question/how-does-mifid-ii-define-the-scope-of-best-execution-differently-than-finra/)
![Abstract system interface on a global data sphere, illustrating a sophisticated RFQ protocol for institutional digital asset derivatives. The glowing circuits represent market microstructure and high-fidelity execution within a Prime RFQ intelligence layer, facilitating price discovery and capital efficiency across liquidity pools.](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-protocol-execution-prime-os.jpg)

MiFID II codifies a prescriptive, data-driven "all sufficient steps" duty, while FINRA mandates a principles-based "reasonable diligence" standard.

- 
### [What Are the Primary Regulatory Differences Governing Best Execution in Equities and Fixed Income?](https://options.greeks.live/question/what-are-the-primary-regulatory-differences-governing-best-execution-in-equities-and-fixed-income/)
![A metallic circular interface, segmented by a prominent 'X' with a luminous central core, visually represents an institutional RFQ protocol. This depicts precise market microstructure, enabling high-fidelity execution for multi-leg spread digital asset derivatives, optimizing capital efficiency across diverse liquidity pools.](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-digital-asset-derivatives-rfq-execution-microstructure.jpg)

Best execution regulations diverge based on market structure: equities rules presume transparency, while fixed income rules demand a documented process of price discovery.

- 
### [What Are the Key Differences between MiFID II and MiCA Best Execution Requirements?](https://options.greeks.live/question/what-are-the-key-differences-between-mifid-ii-and-mica-best-execution-requirements/)
![Multi-faceted, reflective geometric form against dark void, symbolizing complex market microstructure of institutional digital asset derivatives. Sharp angles depict high-fidelity execution, price discovery via RFQ protocols, enabling liquidity aggregation for block trades, optimizing capital efficiency through a Prime RFQ.](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-derivatives-rfq-protocol-liquidity-aggregation-engine.jpg)

MiFID II and MiCA differ in their application, with MiFID II governing traditional financial instruments and MiCA targeting crypto-assets.

- 
### [What Are the Primary Regulatory Challenges in Proving Best Execution for OTC Derivatives?](https://options.greeks.live/question/what-are-the-primary-regulatory-challenges-in-proving-best-execution-for-otc-derivatives/)
![An abstract, precisely engineered construct of interlocking grey and cream panels, featuring a teal display and control. This represents an institutional-grade Crypto Derivatives OS for RFQ protocols, enabling high-fidelity execution, liquidity aggregation, and market microstructure optimization within a Principal's operational framework for digital asset derivatives.](https://options.greeks.live/wp-content/uploads/2025/08/integrated-principal-trading-system-modules-for-institutional-digital-asset-derivatives-rfq-execution-and-optimized-market-microstructure.jpg)

Proving best execution for OTC derivatives is a challenge of applying a quantitative, venue-based framework to a bespoke, bilateral market.

- 
### [How Do Regulators Define Best Execution for Fixed Income Securities?](https://options.greeks.live/question/how-do-regulators-define-best-execution-for-fixed-income-securities/)
![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)

Regulators define best execution for fixed income not as achieving the best price, but as the demonstrable application of reasonable diligence through a robust, data-driven process.

- 
### [What Are the Primary Differences in RFQ Compliance Obligations between US and EU Regulations?](https://options.greeks.live/question/what-are-the-primary-differences-in-rfq-compliance-obligations-between-us-and-eu-regulations/)
![Sleek, engineered components depict an institutional-grade Execution Management System. The prominent dark structure represents high-fidelity execution of digital asset derivatives. Behind it, sweeping forms illustrate latent liquidity and price discovery within a dark pool. The distinct green plane signifies atomic settlement and capital efficiency via RFQ protocols.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-for-optimized-price-discovery-high-fidelity-execution-and-market-microstructure.jpg)

US and EU RFQ compliance diverges on principles versus prescription, shaping distinct best execution, transparency, and reporting architectures.

---

## 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 Is the Role of Counterparty Due Diligence in a Best Execution Policy?",
            "item": "https://options.greeks.live/question/what-is-the-role-of-counterparty-due-diligence-in-a-best-execution-policy/"
        }
    ]
}
```

```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-is-the-role-of-counterparty-due-diligence-in-a-best-execution-policy/"
    },
    "headline": "What Is the Role of Counterparty Due Diligence in a Best Execution Policy? \u25b4 Question",
    "description": "Counterparty due diligence is the analytical verification of a trading partner's integrity, ensuring best execution by mitigating risk. \u25b4 Question",
    "url": "https://options.greeks.live/question/what-is-the-role-of-counterparty-due-diligence-in-a-best-execution-policy/",
    "datePublished": "2025-08-07T11:22:24+00:00",
    "dateModified": "2025-08-07T11:22:30+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/digital-asset-derivatives-rfq-prime-os-microstructure-optimization.jpg",
        "caption": "A sleek, reflective surface anchors a sharp metallic blade via a spherical pivot, with faceted teal prisms suggesting complex structures. This symbolizes the Prime RFQ enabling institutional-grade digital asset derivatives trading, where RFQ protocol facilitates private quotation and price discovery. It highlights high-fidelity execution, market microstructure optimization, and the analytical depth for managing multi-leg spreads and implied volatility surfaces, ensuring capital efficiency."
    },
    "keywords": [
        "Best Execution",
        "Best Execution Framework",
        "Best Execution Policy",
        "Counterparty Due Diligence",
        "Counterparty Risk",
        "Due Diligence",
        "Due Diligence Process",
        "Due Diligence Questionnaire",
        "Execution Policy",
        "Financial Industry Regulatory Authority",
        "Financial Stability",
        "FINRA Rule 5310",
        "MiFID II",
        "Operational Risk",
        "Regulatory Compliance",
        "Risk Assessment",
        "Risk Management"
    ]
}
```

```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-is-the-role-of-counterparty-due-diligence-in-a-best-execution-policy/
