ESMA · ESMA_QA_1643 Answer Published

Organized Trading facilities OTFs

Regulation
Markets in Financial Instruments Directive II (MiFID II) Directive 2014/65/EU- Secondary Markets
Topic
Multilateral and bilateral systems
Submitted
2017-04-03
Answered
2017-04-03
Browse MiFID Register → More Q&As on this regulation →

Question

Does the concept of OTF apply to voice trading and, if yes, when an investment firm executing transactions through voice negotiation should be considered as falling under the definition of OTF?

Answer

[ESMA 70-872942901-38 MiFID II MiFIR market structures Q&A, Q&A 5.11] Yes. MiFID II is technology neutral and the OTF definition includes voice trading in the same way as the definition of regulated markets and MTFs include voice trading systems. An investment firm executing transactions through voice negotiation would be considered as falling under the definition of an OTF where the arrangements in place would meet the conditions set out in Q&A 1635 .
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This Q&A is published by European Securities and Markets Authority and is non-binding. It does not constitute legal advice. Updated weekly from official ESA sources.

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