Multilateral Trading Facility
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A Multilateral Trading Facility is a system that brings together multiple parties (e.g. retail investors or other investment firms) that are interested in buying and selling financial instruments and enables them to do so. These systems can be crossing networks or matching engines that are operated by an investment firm or a market operator. Instruments may include shares, bonds and derivatives. This is done within the MTF operator's system.
Initial authorization conditions and ongoing regulatory requirements are set by the Markets in Financial Instruments Directive (MiFID), which also sets the rules for Regulated Markets and investment firms in Europe. According to MiFID rules, entities trading with financial instruments must be organized as either a regulated market or a multilateral trading facility. Different standards apply to each. The financial instruments traded on an MTF are not subject to the strict rules that apply in the regulated market.[1]
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References
- ↑ "Slovakia: Multilateral trading facilities. International Financial Law Review. Retrieved on September 11, 2008.
