Regulated activity

Operating a multilateral trading facility (MTF)

Operating a multilateral system bringing together multiple third-party buying and selling interests in financial instruments requires an investment firm licence under MiFID II Annex I, Section A(8). Authorised MTF operators can passport trading venues across the EEA, and must maintain transparent, non-discretionary rulebooks, market surveillance systems and pre- and post-trade transparency.

Last verified 2026-09-24Markdown · Data (CC BY 4.0)
Operating a multilateral trading facility (MTF): regulated activityMiFID

Definition

Running a multilateral system, other than a regulated market, that matches third-party interests in financial instruments under non-discretionary rules.

Which licence you need

Licence families that typically permit this activity:

Where it can be licensed

Jurisdictions where operating a multilateral trading facility (mtf) can be licensedCyprusCzech RepublicEstoniaGermanyIrelandItalyLatviaLithuaniaLuxembourgNetherlandsPolandSlovakiaSpainDubai International Financial Centre (DIFC)Hong KongMalta
Licences in the Atlas that permit this activity
EU/EEA passportDomestic
Cyprus: Cyprus Investment Firm (CIF) authorisation✓
Czech Republic: Investment Firm licence (povolení k činnosti obchodníka s cennými papíry - OCP)✓
Dubai International Financial Centre (DIFC): Financial Services Permission for Dealing in Investments as Agent or Operating an Alternative Trading System (Category 3A)✓
Estonia: Authorisation as an investment firm✓
Germany: Investment firm licence (Erlaubnis zur Erbringung von Wertpapierdienstleistungen nach § 15 WpIG)✓
Hong Kong: Type 7 Licence for Providing Automated Trading Services✓
Ireland: Investment Firm Authorisation (MiFID II)✓
Italy: Società di Intermediazione Mobiliare (SIM) investment firm licence✓
Latvia: Investment firm licence✓
Lithuania: Financial brokerage firm licence✓
Luxembourg: Investment firm authorisation✓
Malta: Investment services licence (Category 1, 2, or 3)✓
Netherlands: Investment firm licence (Vergunning beleggingsonderneming) under Wft Article 2:96 and MiFID II✓
Poland: Brokerage House licence (dom maklerski)✓
Slovakia: Investment firm licence (povolenie na poskytovanie investičných služieb pre obchodníka s cennými papiermi)✓
Spain: Sociedad de Valores y Agencia de Valores (SV / AV) investment firm licence✓

Frequently asked questions

How does a multilateral trading facility differ from a regulated market?

Regulated markets, such as traditional stock exchanges, require dedicated stock exchange authorisation with statutory listing powers. MTFs operate under investment firm licences with flexible admission criteria, though both must enforce non-discretionary trading rules and comprehensive trade surveillance.

Can an MTF operator trade against its own book within the facility?

No, operators of multilateral trading facilities are prohibited from executing client orders against proprietary capital within the system. The platform must remain strictly multilateral and neutral, allowing third-party buying and selling interests to interact without operator intervention.

Last verified 2026-09-24Author Danil Marmysh, Founder & CEO, ProtegraReviewed by Anastasia Sidorenkova, Head of Licensing, ProtegraReport an errorReference information, not legal advice.

Sources

  1. MiFID II Annex I, Section A(8) · retrieved 2026-09-24

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