411:
262:
84:
58:. The term 'non-discretionary rules' means that the investment firm operating an MTF has no discretion as to how interests may interact. Interests are brought together by forming a contract and the execution takes place under the system's rules or by means of the system's protocols or internal operating procedures.
243:
and pay fees; this allows the operator to ensure that only appropriate securities are available for trading. This may involve requirements about the number of shares that are available, standards around how the accounts of the company are maintained or strict rules about how news is released to the
247:
Whether or not a security has been "admitted to trading on a regulated market" is a key concept within MiFID, and is fundamental in how the rules apply to trading in the security. MTFs do not have a standard listing process and cannot change the regulatory status of a security.
507:
New entrant MTFs have had a considerable impact on
European share-trading. MiFID enabled trading venues to compete with one another. The legacy exchanges largely chose to keep to their existing business models and scope, but new entrant MTFs have made a significant impact.
55:
multilateral system, operated by an investment firm or a market operator, which brings together multiple third-party buying and selling interests in financial instruments – in the system and in accordance with non-discretionary rules – in a way that results in a
571:
Although they have forced significant adjustments within the equity trading markets, the MTFs themselves have had limited success. Chi-X Europe claims to be profitable, however Nasdaq OMX Europe was shut down in 2010 and
Turquoise was bought by the LSE.
61:
The MTF can be operated by a market operator or an investment firm whereas the operation of a regulated market is not considered an investment service and is carried out exclusively by market operators that are authorised to do so. The
530:, where liquidity for one security is no-longer concentrated on one exchange but across multiple venues. This in turn forced traders to make use of more sophisticated trading strategies such as
907:
192:. The rules for operating exchanges varied from country to country, with some exchanges granted exclusivity over certain services for that country's market. Consequently, European
575:
Many consider the MTF business model unsustainable, although
Alisdair Haynes, the Chi-X Europe CEO, said "We are not going to raise prices, though most people expect we have to".
797:
748:
236:
MTFs are a kind of "exchange lite" because they provide similar or competing trading services and have similar structures, like rulebooks and market surveillance departments.
872:
563:
These all made the new venues highly attractive and to take market share. In turn, existing venues were forced to discount heavily, significantly impacting revenues.
428:
279:
101:
583:
Most investment banks run an internal crossing system. These systems cross clients' orders against one another, or fill the orders directly off the bank's book.
600:
The exact regulatory status of broker crossing systems is a matter of debate and controversy. It is expected to be an area of future regulatory intervention.
228:
Permission to run any of the three types of service was required from an appropriate regulator, with the existing exchanges registering as regulated markets.
900:
47:
50:(MiFID), a European Directive designed to harmonise retail investors protection and allow investment firms to provide services throughout the EU.
689:
658:
893:
475:
326:
148:
1138:
734:
447:
298:
120:
825:
454:
305:
127:
804:
752:
494:
345:
167:
848:
1163:
614:
461:
312:
134:
863:
432:
283:
105:
775:
443:
294:
116:
654:
1640:
1580:
1376:
1282:
556:
Maker/taker pricing, paying members to trade on the platform as long as the trading adds liquidity rather than takes it;
703:
1366:
1334:
1238:
1192:
1175:
1128:
634:
559:
Trading incentives, often called jump-balls, in which stakes are given to trading members in return for volume traded.
520:
589:
has converted its internal crossing system, NX, into an MTF. Nomura said its decision was for "commercial purposes".
1151:
1145:
609:
67:
421:
272:
94:
221:
1540:
1215:
239:
Market operators are also arbiters for securities. Companies wishing to list upon a regulated market undergo a
1494:
1355:
1250:
1133:
705:
Waivers from Pre-trade
Transparency Obligations under the Markets in Financial Instruments Directive (MiFID)
619:
35:
468:
319:
141:
1382:
547:
1686:
1520:
1329:
185:
681:
512:, the largest MTF by volume, is also the largest trading venue in Europe according to some statistics.
180:
Before the introduction of MiFID trading in stocks and shares was typically centred on large national
1655:
1575:
1340:
1324:
1287:
1169:
1112:
1080:
212:
31:
1585:
1530:
1454:
1314:
1244:
1073:
1046:
193:
1434:
1625:
1600:
1560:
1545:
1464:
1403:
1361:
1105:
1015:
1005:
749:"E-Forex Magazine | Special Report | LMAX Exchange. Exchange style trading for spot FX"
730:
396:
There must be a rulebook advising how the system works and a means for applying for membership.
369:
An MTF may be exempted from pre-trade transparency via use of an appropriate waiver, such as a
1489:
1474:
1226:
1590:
1510:
1306:
1187:
1063:
982:
938:
916:
624:
46:
in securities, typically using electronic systems. The concept was introduced within the
1665:
1660:
1595:
1570:
1505:
1479:
1459:
1418:
1413:
1408:
1393:
1388:
1276:
1210:
1202:
1090:
977:
821:
840:
1620:
1615:
1515:
1500:
1261:
1256:
1221:
1020:
987:
933:
925:
201:
181:
39:
28:
783:
593:
has established UBS MTF, this works in conjunction with its crossing system, UBS PIN.
1680:
1484:
1469:
1444:
1398:
1350:
1053:
1010:
997:
948:
594:
516:
63:
1645:
1565:
1535:
1525:
1345:
1319:
1068:
1058:
1041:
972:
967:
943:
586:
509:
43:
196:
tended to be conducted on one specific venue, like the
Euronext Paris market for
1650:
1630:
1610:
1605:
1550:
1439:
1371:
410:
261:
83:
515:
MTFs have been launched in other asset classes as well, one of the examples is
1635:
1555:
1232:
1095:
393:
Prices and charges must be public and applied consistently across all members.
1271:
1266:
1181:
1100:
709:
629:
546:
High trading speeds, using technology to make their platforms attractive to
378:
366:, the price of existing orders must be made available on market data feeds.
1449:
1085:
189:
390:, any trades carried out on the platform must be published in real-time.
1293:
435: in this section. Unsourced material may be challenged and removed.
286: in this section. Unsourced material may be challenged and removed.
108: in this section. Unsourced material may be challenged and removed.
1036:
197:
885:
822:"NASDAQ OMX to Close Its Pan-European Equity MTF NASDAQ OMX Europe"
553:
Low cost bases, running their organisations with minimal headcount;
959:
865:
Review of the
Markets in Financial Instruments Directive (MIFID)
889:
590:
404:
358:
MiFID lays out a number of obligations for an MTF to operate:
255:
77:
803:(Press release). Chi-X Europe. 12 July 2010. Archived from
523:
regulated MTF for trading spot FX and precious metals.
776:"Deutsche Boerse swings to first ever quarterly loss"
1427:
1302:
1201:
1121:
1029:
996:
957:
923:
207:MiFID II classified three types of trading venue:
841:"Chi-X Europe CEO plans to keep low-fee strategy"
597:has also announced that it will launch an MTF.
901:
38:. These are alternatives to the traditional
8:
824:(Press release). Nasdaq OMX. 28 April 2010.
798:"Chi-X Europe posts another record quarter"
908:
894:
886:
48:Markets in Financial Instruments Directive
495:Learn how and when to remove this message
346:Learn how and when to remove this message
168:Learn how and when to remove this message
53:Article 4 (15) of MiFID describes MTF as
377:waiver - in this case the MTF will be a
862:European Commission (8 December 2010),
646:
692:from the original on 23 December 2010.
659:Official Journal of the European Union
878:from the original on 15 December 2010
851:from the original on 4 December 2010.
737:from the original on 13 January 2011.
217:A multilateral trading facility (MTF)
7:
433:adding citations to reliable sources
284:adding citations to reliable sources
106:adding citations to reliable sources
774:Taylor, Edward (16 February 2010).
682:"Whose move in the Chi-X end game?"
526:This is part of a process known as
232:Comparison with "regulated markets"
828:from the original on 14 July 2011.
680:Grant, Jeremy (17 December 2010).
14:
211:A regulated market (RM) run by a
1164:Electronic communication network
839:Baird, Jane (14 February 2010).
615:Electronic communication network
409:
260:
82:
542:The new MTFs were notable for:
444:"Multilateral trading facility"
420:needs additional citations for
295:"Multilateral trading facility"
271:needs additional citations for
117:"Multilateral trading facility"
93:needs additional citations for
16:Type of financial trading venue
1:
1158:Multilateral trading facility
708:, 20 May 2009, archived from
21:multilateral trading facility
1581:Returns-based style analysis
1377:Post-modern portfolio theory
1283:Security characteristic line
1335:Efficient-market hypothesis
1239:Capital asset pricing model
1176:Straight-through processing
635:Electronic trading platform
1703:
1152:Alternative Trading System
610:Alternative trading system
567:Limited individual success
401:Impact on European trading
222:organised trading facility
200:securities or the LSE for
188:(LSE), Deutsche Börse and
68:alternative trading system
34:term for a self-regulated
1216:Arbitrage pricing theory
1495:Initial public offering
1356:Modern portfolio theory
1251:Dividend discount model
1134:List of stock exchanges
731:"Market Share by Index"
620:Swap Execution Facility
36:financial trading venue
1383:Random walk hypothesis
655:"Directive 2004/39/EC"
548:high frequency traders
388:post-trade transparent
1521:Market capitalization
1330:Dollar cost averaging
364:pre-trade transparent
186:London Stock Exchange
1341:Fundamental analysis
1325:Contrarian investing
1288:Security market line
1193:Liquidity aggregator
1170:Direct market access
1081:Quantitative analyst
782:. UK. Archived from
579:Investment bank MTFs
429:improve this article
280:improve this article
102:improve this article
1586:Reverse stock split
1531:Market manipulation
1455:Dual-listed company
1315:Algorithmic trading
1245:Capital market line
1047:Inter-dealer broker
686:The Financial Times
532:smart order routing
1626:Stock market index
1465:Efficient frontier
1404:Technical analysis
1362:Momentum investing
1184:(private exchange)
1074:Proprietary trader
1016:Shares outstanding
1006:Authorised capital
755:on 16 January 2014
1674:
1673:
1475:Flight-to-quality
1227:Buffett indicator
917:Financial markets
505:
504:
497:
479:
375:price referencing
356:
355:
348:
330:
178:
177:
170:
152:
66:equivalent is an
1694:
1591:Share repurchase
1303:Trading theories
1188:Crossing network
1146:Over-the-counter
983:Restricted stock
939:Secondary market
910:
903:
896:
887:
880:
879:
877:
870:
859:
853:
852:
836:
830:
829:
818:
812:
811:
809:
802:
794:
788:
787:
786:on 16 July 2012.
771:
765:
764:
762:
760:
751:. Archived from
745:
739:
738:
727:
721:
720:
719:
717:
700:
694:
693:
677:
671:
670:
668:
666:
651:
625:Crossing network
500:
493:
489:
486:
480:
478:
437:
413:
405:
351:
344:
340:
337:
331:
329:
288:
264:
256:
173:
166:
162:
159:
153:
151:
110:
86:
78:
1702:
1701:
1697:
1696:
1695:
1693:
1692:
1691:
1677:
1676:
1675:
1670:
1661:Voting interest
1571:Public offering
1506:Mandatory offer
1480:Government bond
1460:DuPont analysis
1423:
1419:Value investing
1414:Value averaging
1409:Trend following
1394:Style investing
1389:Sector rotation
1304:
1298:
1277:Net asset value
1203:Stock valuation
1197:
1117:
1025:
992:
978:Preferred stock
953:
919:
914:
884:
883:
875:
868:
861:
860:
856:
838:
837:
833:
820:
819:
815:
810:on 8 July 2011.
807:
800:
796:
795:
791:
773:
772:
768:
758:
756:
747:
746:
742:
733:. BATS Europe.
729:
728:
724:
715:
713:
712:on 21 July 2011
702:
701:
697:
679:
678:
674:
664:
662:
653:
652:
648:
643:
606:
581:
569:
540:
501:
490:
484:
481:
438:
436:
426:
414:
403:
352:
341:
335:
332:
289:
287:
277:
265:
254:
252:Operating rules
241:listing process
234:
213:market operator
182:stock exchanges
174:
163:
157:
154:
111:
109:
99:
87:
76:
40:stock exchanges
17:
12:
11:
5:
1700:
1698:
1690:
1689:
1679:
1678:
1672:
1671:
1669:
1668:
1663:
1658:
1653:
1648:
1643:
1638:
1633:
1628:
1623:
1621:Stock exchange
1618:
1616:Stock dilution
1613:
1608:
1603:
1598:
1593:
1588:
1583:
1578:
1573:
1568:
1563:
1558:
1553:
1548:
1543:
1541:Mean reversion
1538:
1533:
1528:
1523:
1518:
1516:Market anomaly
1513:
1508:
1503:
1498:
1492:
1487:
1482:
1477:
1472:
1467:
1462:
1457:
1452:
1447:
1442:
1437:
1435:Bid–ask spread
1431:
1429:
1425:
1424:
1422:
1421:
1416:
1411:
1406:
1401:
1396:
1391:
1386:
1380:
1374:
1369:
1364:
1359:
1353:
1348:
1343:
1338:
1332:
1327:
1322:
1317:
1311:
1309:
1300:
1299:
1297:
1296:
1291:
1285:
1280:
1274:
1269:
1264:
1262:Earnings yield
1259:
1257:Dividend yield
1254:
1248:
1242:
1236:
1230:
1224:
1219:
1213:
1207:
1205:
1199:
1198:
1196:
1195:
1190:
1185:
1179:
1173:
1167:
1161:
1155:
1149:
1148:(off-exchange)
1143:
1142:
1141:
1136:
1125:
1123:
1122:Trading venues
1119:
1118:
1116:
1115:
1110:
1109:
1108:
1098:
1093:
1088:
1083:
1078:
1077:
1076:
1071:
1061:
1056:
1051:
1050:
1049:
1044:
1033:
1031:
1027:
1026:
1024:
1023:
1021:Treasury stock
1018:
1013:
1008:
1002:
1000:
994:
993:
991:
990:
988:Tracking stock
985:
980:
975:
970:
964:
962:
955:
954:
952:
951:
946:
941:
936:
934:Primary market
930:
928:
921:
920:
915:
913:
912:
905:
898:
890:
882:
881:
854:
831:
813:
789:
766:
740:
722:
695:
672:
645:
644:
642:
639:
638:
637:
632:
627:
622:
617:
612:
605:
602:
580:
577:
568:
565:
561:
560:
557:
554:
551:
539:
538:Impact on fees
536:
503:
502:
417:
415:
408:
402:
399:
398:
397:
394:
391:
384:
383:
382:
354:
353:
268:
266:
259:
253:
250:
233:
230:
226:
225:
218:
215:
202:United Kingdom
176:
175:
90:
88:
81:
75:
72:
44:market is made
29:European Union
15:
13:
10:
9:
6:
4:
3:
2:
1699:
1688:
1685:
1684:
1682:
1667:
1664:
1662:
1659:
1657:
1654:
1652:
1649:
1647:
1644:
1642:
1639:
1637:
1634:
1632:
1629:
1627:
1624:
1622:
1619:
1617:
1614:
1612:
1609:
1607:
1604:
1602:
1599:
1597:
1596:Short selling
1594:
1592:
1589:
1587:
1584:
1582:
1579:
1577:
1574:
1572:
1569:
1567:
1564:
1562:
1559:
1557:
1554:
1552:
1549:
1547:
1544:
1542:
1539:
1537:
1534:
1532:
1529:
1527:
1524:
1522:
1519:
1517:
1514:
1512:
1509:
1507:
1504:
1502:
1499:
1496:
1493:
1491:
1488:
1486:
1485:Greenspan put
1483:
1481:
1478:
1476:
1473:
1471:
1470:Financial law
1468:
1466:
1463:
1461:
1458:
1456:
1453:
1451:
1448:
1446:
1445:Cross listing
1443:
1441:
1438:
1436:
1433:
1432:
1430:
1428:Related terms
1426:
1420:
1417:
1415:
1412:
1410:
1407:
1405:
1402:
1400:
1399:Swing trading
1397:
1395:
1392:
1390:
1387:
1384:
1381:
1378:
1375:
1373:
1370:
1368:
1367:Mosaic theory
1365:
1363:
1360:
1357:
1354:
1352:
1351:Market timing
1349:
1347:
1344:
1342:
1339:
1336:
1333:
1331:
1328:
1326:
1323:
1321:
1318:
1316:
1313:
1312:
1310:
1308:
1301:
1295:
1292:
1289:
1286:
1284:
1281:
1278:
1275:
1273:
1270:
1268:
1265:
1263:
1260:
1258:
1255:
1252:
1249:
1246:
1243:
1240:
1237:
1234:
1231:
1228:
1225:
1223:
1220:
1217:
1214:
1212:
1209:
1208:
1206:
1204:
1200:
1194:
1191:
1189:
1186:
1183:
1180:
1177:
1174:
1171:
1168:
1165:
1162:
1159:
1156:
1153:
1150:
1147:
1144:
1140:
1139:Trading hours
1137:
1135:
1132:
1131:
1130:
1127:
1126:
1124:
1120:
1114:
1111:
1107:
1104:
1103:
1102:
1099:
1097:
1094:
1092:
1089:
1087:
1084:
1082:
1079:
1075:
1072:
1070:
1067:
1066:
1065:
1062:
1060:
1057:
1055:
1054:Broker-dealer
1052:
1048:
1045:
1043:
1040:
1039:
1038:
1035:
1034:
1032:
1028:
1022:
1019:
1017:
1014:
1012:
1011:Issued shares
1009:
1007:
1004:
1003:
1001:
999:
998:Share capital
995:
989:
986:
984:
981:
979:
976:
974:
971:
969:
966:
965:
963:
961:
956:
950:
949:Fourth market
947:
945:
942:
940:
937:
935:
932:
931:
929:
927:
922:
918:
911:
906:
904:
899:
897:
892:
891:
888:
874:
867:
866:
858:
855:
850:
846:
842:
835:
832:
827:
823:
817:
814:
806:
799:
793:
790:
785:
781:
777:
770:
767:
754:
750:
744:
741:
736:
732:
726:
723:
711:
707:
706:
699:
696:
691:
687:
683:
676:
673:
660:
656:
650:
647:
640:
636:
633:
631:
628:
626:
623:
621:
618:
616:
613:
611:
608:
607:
603:
601:
598:
596:
595:Goldman Sachs
592:
588:
584:
578:
576:
573:
566:
564:
558:
555:
552:
549:
545:
544:
543:
537:
535:
533:
529:
528:fragmentation
524:
522:
518:
517:LMAX Exchange
513:
511:
499:
496:
488:
477:
474:
470:
467:
463:
460:
456:
453:
449:
446: –
445:
441:
440:Find sources:
434:
430:
424:
423:
418:This section
416:
412:
407:
406:
400:
395:
392:
389:
385:
380:
376:
372:
371:large in size
368:
367:
365:
361:
360:
359:
350:
347:
339:
328:
325:
321:
318:
314:
311:
307:
304:
300:
297: –
296:
292:
291:Find sources:
285:
281:
275:
274:
269:This section
267:
263:
258:
257:
251:
249:
245:
242:
237:
231:
229:
223:
219:
216:
214:
210:
209:
208:
205:
203:
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91:This section
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64:United States
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1687:Stock market
1646:Tender offer
1566:Public float
1536:Market trend
1526:Market depth
1346:Growth stock
1320:Buy and hold
1229:(Cap-to-GDP)
1157:
1069:Floor trader
1059:Market maker
1042:Floor broker
1030:Participants
973:Golden share
968:Common stock
944:Third market
864:
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805:the original
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427:Please help
422:verification
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278:Please help
273:verification
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100:Please help
95:verification
92:
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1651:Uptick rule
1631:Stock split
1611:Squeeze-out
1606:Speculation
1551:Open outcry
1440:Block trade
1372:Pairs trade
386:It must be
362:It must be
1656:Volatility
1636:Stock swap
1556:Order book
1307:strategies
1233:Book value
1101:Arbitrager
1096:Speculator
688:. London.
641:References
455:newspapers
373:waiver or
306:newspapers
184:, such as
128:newspapers
32:regulatory
1272:Fed model
1267:EV/EBITDA
1182:Dark pool
1113:Regulator
958:Types of
924:Types of
759:27 August
716:3 January
630:Dark pool
485:July 2021
379:dark pool
336:July 2021
158:July 2021
1681:Category
1601:Slippage
1561:Position
1546:Momentum
1450:Dividend
1129:Exchange
1086:Investor
873:archived
849:Archived
826:Archived
735:Archived
690:Archived
665:20 March
604:See also
244:market.
190:Euronext
56:contract
42:where a
1490:Haircut
1294:T-model
1106:Scalper
926:markets
845:Reuters
780:Reuters
469:scholar
320:scholar
142:scholar
74:History
27:) is a
1511:Margin
1379:(PMPT)
1241:(CAPM)
1091:Hedger
1064:Trader
1037:Broker
960:stocks
847:. UK.
661:. 2004
587:Nomura
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198:French
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1666:Yield
1641:Trade
1576:Rally
1497:(IPO)
1385:(RMH)
1358:(MPT)
1337:(EMH)
1290:(SML)
1279:(NAV)
1253:(DDM)
1247:(CML)
1218:(APT)
1211:Alpha
1178:(STP)
1172:(DMA)
1166:(ECN)
1160:(MTF)
1154:(ATS)
876:(PDF)
869:(PDF)
808:(PDF)
801:(PDF)
476:JSTOR
462:books
327:JSTOR
313:books
224:(OTF)
149:JSTOR
135:books
1501:Long
1305:and
1235:(BV)
1222:Beta
761:2013
718:2011
667:2008
448:news
299:news
121:news
591:UBS
521:FCA
519:an
431:by
282:by
220:An
104:by
25:MTF
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