Difference between revisions of "Multilateral trading facility"

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(Add description about 'venue' meaning 'system'. Source: EC Europa Glossary http://ec.europa.eu/internal_market/securities/docs/glossary_en.pdf)
(Note covered by MAR.)
 
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''MiFID Level 1 Directive. Articles 4(15), 13, 14, 25, 26, Annex I, Section A.''
 
''MiFID Level 1 Directive. Articles 4(15), 13, 14, 25, 26, Annex I, Section A.''
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Participants in MTFs are also subject to the Market Abuse Regulation (MAR).
  
  
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The MTF system is sometimes also known as a 'venue'.  In practice the venue would normally be a virtual venue, rather than a physical location.
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The MTF system is sometimes also known as a 'venue'.   
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In practice the venue would normally be a virtual venue, rather than a physical location.
  
  
 
== See also ==
 
== See also ==
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*[[Broker crossing network]]
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*[[Market Abuse Regulation]]
 
*[[MiFID]]
 
*[[MiFID]]
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*[[Organised trading facility]]
 
*[[Regulated market]]
 
*[[Regulated market]]
 
*[[Systematic internaliser]]
 
*[[Systematic internaliser]]
*[[Broker crossing network]]
 
  
 
[[Category:Corporate_finance]]
 
[[Category:Corporate_finance]]
 
[[Category:Compliance_and_audit]]
 
[[Category:Compliance_and_audit]]
 
[[Category:Manage_risks]]
 
[[Category:Manage_risks]]

Latest revision as of 16:32, 4 August 2018

(MTF).

A facility for trading which is less formal than a fully established exchange.


Operating a Multilateral trading facility is an investment service to which MiFID regulation applies.


An MTF is defined for MiFID purposes as:

  1. A multilateral system
  2. Operated by an investment firm or a market operator
  3. Which brings together multiple third-party buying and selling interests in financial instruments
  4. In the multilateral system
  5. In accordance with non-discretionary rules
  6. In a way that results in a contract.


MTFs are required under MiFID to comply with regulations about:

  1. Organisation
  2. Transparency and
  3. Market surveillance.


The regulations for MTFs are similar to those applying to larger and more formal regulated markets (RMs).

However, the regulatory requirements for MTFs are lighter than the requirements for regulated markets.


MiFID Level 1 Directive. Articles 4(15), 13, 14, 25, 26, Annex I, Section A.


Participants in MTFs are also subject to the Market Abuse Regulation (MAR).


MTFs were formerly known as Alternative Trading Systems (ATSs).


The MTF system is sometimes also known as a 'venue'.

In practice the venue would normally be a virtual venue, rather than a physical location.


See also