Operating a multilateral trading facility (MTF)
Running a multilateral venue that brings together several third parties' buying and selling interests in financial instruments needs an investment firm licence under MiFID II Annex I, Section A(8). The operator keeps a transparent, non-discretionary rulebook, runs market surveillance and provides pre- and post-trade transparency, then can passport the venue across the EEA.
Definition
Running a multilateral system, other than a regulated market, that matches third-party interests in financial instruments under non-discretionary rules.
- MiFID II, Annex I, Section A(8): official text
Which licence you need
Licence families that typically permit this activity:
- IF · Cyprus
Cyprus Investment Firm (CIF) authorisation
CySEC
- IF · Czech Republic
Investment Firm licence
CNB
- IF · Dubai International Financial Centre (DIFC)
Investment firm licence
Financial Services Permission for Dealing in Investments as Agent or Operating an Alternative Trading System (Category 3A)DFSA
- IF · Estonia
Authorisation as an investment firm
FI
- IF · Germany
Investment firm licence
BaFin
- IF · Hong Kong
Type 7 Licence for Providing Automated Trading Services
SFC
- IF · Ireland
Investment Firm Authorisation (MiFID II)
CBI
- IF · Italy
Investment firm licence (SIM)
CONSOB
- IF · Latvia
Investment firm licence
LB
- IF · Lithuania
Financial brokerage firm licence
LB
- IF · Luxembourg
Investment firm authorisation
CSSF
- IF · Malta
Investment services licence (Category 1, 2, or 3)
MFSA
- IF · Netherlands
Investment firm licence
Investment firm licence (Vergunning beleggingsonderneming) under Wft Article 2:96 and MiFID IIAFM
- IF · Poland
Brokerage House licence (dom maklerski)
KNF
- IF · Slovakia
Investment firm licence
NBS
- IF · Spain
AV) investment firm licence
CNMV
Where it can be licensed
Frequently asked questions
How does a multilateral trading facility differ from a regulated market?
A regulated market, a traditional stock exchange among them, needs its own stock exchange authorisation with statutory listing powers. An MTF instead runs on an investment firm licence with more flexible admission criteria, though both still enforce non-discretionary trading rules and full trade surveillance.
Can an MTF operator trade against its own book within the facility?
No. An MTF operator cannot execute client orders against its own capital inside the system it runs. The platform has to stay strictly multilateral and neutral, so third-party buying and selling interests interact without the operator stepping in.
Sources
- MiFID II Annex I, Section A(8) · retrieved 2026-09-24
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