Multilateral Trading Facility
A multilateral trading system (English Multilateral Trading Facility - MTF) is to bring together a of a financial service, an investment firm or a market operator furnished and driven, exchange- similar network or a multilateral system with the aim of a large number of buyers and sellers in the financial market according to certain rules.
Background
In accordance with the Markets in Financial Instruments Directive of the European Union made extensive disclosure requirements for such service. The operation of such a system applicable in Germany since 2006 as a securities or financial services.
- § / Maintenance / buzer para set 1a sentence 2 numbers 1 to 10 and Clause 3 of the Banking Act: What is to be regarded as financial services, is finally in § 1Vorlage.
- The operation of a multilateral trading system is regulated in § 2 par 3 No. 8 WpHG.
A multilateral trading system is an exchange-like trading platform (mostly Internet- based) compared to regulated markets can be broadly matching requirements, such as on
- Admission of trading members
- Rules for price determination and conducting business,
- Control procedures and
- Pre-and post by BaFin.
The difference to the regulated market is that no requirements for the inclusion of trade in financial instruments and issuers and also no admission requirements exist. This means that financial institutions get the opportunity to jointly set up a trading system that is traded on the securities. Financial institutions able to deal with internally securities orders from customers thus. (English: cleared ), which remains the seller denied the regulated market.
The first MTF in Germany was operated in Berlin trading platform Tradegate. Meanwhile, the trading platform was admitted to the stock exchange. Wearer of Tradegate Exchange is the Tradegate GmbH. Furthermore Turquoise MTF counts as the major banks. Both are in competition with the established exchanges.