Organised Trading Facilities (OTFs)
Organised Trading Facilities (OTFs)

The following Financial Services practice note provides comprehensive and up to date legal information covering:

  • Organised Trading Facilities (OTFs)
  • OTFs—introduction
  • OTFs and the Market Abuse Regulation
  • The regulation of OTFs in the UK
  • What is an OTF?
  • Authorisation of OTFs under MiFID II
  • Register of OTFs under MiFID II
  • Operating an OTF in the UK
  • OTFs and passporting
  • OTFs—trading process requirements
  • More...

BREXIT: 11pm (GMT) on 31 December 2020 (‘IP completion day’) marked the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. Following IP completion day, key transitional arrangements come to an end and significant changes begin to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see: Brexit and financial services: materials on the post-Brexit UK/EU regulatory regime.

The recast Markets in Financial Instruments Directive (Directive 2014/65/EU) (MiFID II) and the Markets in Financial Instruments Regulation (Regulation (EU) 600/2014) (MiFIR), which were adopted in 2014 and came into effect on 3 January 2018, replaced the Markets in Financial Instruments Directive (Directive 2004/39/EC) (MiFID). MiFID II and MiFIR introduced a new type of trading venue, the 'organised trading facility' or 'OTF', in order to capture broker-crossing networks and other multilateral systems for trading in bonds, structured finance products, emission allowances or derivatives that fall outside the categories of regulated markets (RMs), multilateral trading facilities (MTFs) and systematic internalisers (SIs). OTFs are also intended to include systems for trading derivatives that are eligible for clearing under Regulation (EU) 648/2012 (the European Markets Infrastructure Regulation or EMIR). This Practice Note focuses on the regulation of OTFs under MiFID II and MiFIR, as implemented in the UK. In addition, the Market Abuse Regulation (Regulation

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