A new definition of what constitutes a trading facility
could mean that any brokers offering an electronic platform
will be subject to increased transparency requirements and
As well as reassessing the division between official
exchanges and multilateral trading facilities (MTFs), the
European Commission review of the Markets in Financial
Instruments Directive (Mifid) is also proposing to add an
entirely new category of trading venue, referred to as
organised trading facilities (OTF).
This is designed to acknowledge those facilities operated by
brokers and bank that bring together buyers and sellers that
look like mini-MTFs, and which the legislators think should be
subject to similar regulation.
This would catch, for example, those banks that operate