Q&A · ESMA
Organized Trading facilities OTFs
Answered
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Not every form of discretion makes a venue an OTF: Article 20(6) discretion means real judgement over placing or retracting orders (order discretion) and over whether, when and how much to match (execution discretion), actually exercised in the ordinary course of business and explainable to the authority; following client instructions or best execution, random decisions, pre-trade controls and post-trade choices do not count.
Details
| Reference | ESMA_QA_1651 |
|---|---|
| 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 5.19 |
Provisions it relates to
- Article 20 MiFID II · Specific requirements for OTFsInferred · 95%
- MiFID II (whole act)Explicit reference