Q&A · ESMA
Organized Trading facilities OTFs - Difference with MTFs
Answered
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OTFs differ from MTFs in that they trade only non-equity instruments, allow the operator more matched principal and own-account activity (but not combined with an SI), require the operator to exercise discretion, and have clients rather than members, so client-facing rules such as best execution apply; physically settled REMIT energy products on an OTF are not financial instruments.
Details
| Reference | ESMA_QA_1644 |
|---|---|
| Issuer | ESMA |
| Published | 3 Apr 2017 |
| Answered | 3 Apr 2017 |
| Submitted | 3 Apr 2017 |
| ESMA topics | Multilateral and bilateral systems |
| Earlier Q&A document | ESMA 70-872942901-38 MiFID II MiFIR market structures Q&A, Q&A 5.12 |
Provisions it relates to
- Article 4 MiFID II · DefinitionsInferred · 75%
- Article 20 MiFID II · Specific requirements for OTFsInferred · 85%
- MiFID II (whole act)Explicit reference