# Operating a multilateral trading facility (MTF)

Source page: https://protegra.io/licensing/activities/operating-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.

## 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](https://eur-lex.europa.eu/eli/dir/2014/65/oj)

## Which licence you need

Licence families that typically permit this activity:

- [Investment firm / broker-dealer](https://protegra.io/licensing/licences/investment-firm/)

- [IF · CyprusCyprus Investment Firm (CIF) authorisationCySEC](https://protegra.io/licensing/licences/investment-firm/cyprus-cif/)
- [IF · Czech RepublicInvestment Firm licence (povolení k činnosti obchodníka s cennými papíry - OCP)CNB](https://protegra.io/licensing/licences/investment-firm/czech-republic/)
- [IF · Dubai International Financial Centre (DIFC)Financial Services Permission for Dealing in Investments as Agent or Operating an Alternative Trading System (Category 3A)DFSA](https://protegra.io/licensing/licences/investment-firm/difc-cat3a/)
- [IF · EstoniaAuthorisation as an investment firmFI](https://protegra.io/licensing/licences/investment-firm/estonia/)
- [IF · GermanyInvestment firm licence (Erlaubnis zur Erbringung von Wertpapierdienstleistungen nach § 15 WpIG)BaFin](https://protegra.io/licensing/licences/investment-firm/germany/)
- [IF · Hong KongType 7 Licence for Providing Automated Trading ServicesSFC](https://protegra.io/licensing/licences/investment-firm/hong-kong-type7/)
- [IF · IrelandInvestment Firm Authorisation (MiFID II)CBI](https://protegra.io/licensing/licences/investment-firm/ireland/)
- [IF · ItalySocietà di Intermediazione Mobiliare (SIM) investment firm licenceCONSOB](https://protegra.io/licensing/licences/investment-firm/italy-sim/)
- [IF · LatviaInvestment firm licenceLB](https://protegra.io/licensing/licences/investment-firm/latvia/)
- [IF · LithuaniaFinancial brokerage firm licenceLB](https://protegra.io/licensing/licences/investment-firm/lithuania/)
- [IF · LuxembourgInvestment firm authorisationCSSF](https://protegra.io/licensing/licences/investment-firm/luxembourg/)
- [IF · MaltaInvestment services licence (Category 1, 2, or 3)MFSA](https://protegra.io/licensing/licences/investment-firm/malta/)
- [IF · NetherlandsInvestment firm licence (Vergunning beleggingsonderneming) under Wft Article 2:96 and MiFID IIAFM](https://protegra.io/licensing/licences/investment-firm/netherlands/)
- [IF · PolandBrokerage House licence (dom maklerski)KNF](https://protegra.io/licensing/licences/investment-firm/poland-brokerage/)
- [IF · SlovakiaInvestment firm licence (povolenie na poskytovanie investičných služieb pre obchodníka s cennými papiermi)NBS](https://protegra.io/licensing/licences/investment-firm/slovakia/)
- [IF · SpainSociedad de Valores y Agencia de Valores (SV / AV) investment firm licenceCNMV](https://protegra.io/licensing/licences/investment-firm/spain-broker-dealer/)

## Where it can be licensed

| | EU/EEA passport | Domestic |
| --- | --- | --- |
| [Cyprus: Cyprus Investment Firm (CIF) authorisation](https://protegra.io/licensing/licences/investment-firm/cyprus-cif/) | ✓ | |
| [Czech Republic: Investment Firm licence (povolení k činnosti obchodníka s cennými papíry - OCP)](https://protegra.io/licensing/licences/investment-firm/czech-republic/) | ✓ | |
| [Dubai International Financial Centre (DIFC): Financial Services Permission for Dealing in Investments as Agent or Operating an Alternative Trading System (Category 3A)](https://protegra.io/licensing/licences/investment-firm/difc-cat3a/) | | ✓ |
| [Estonia: Authorisation as an investment firm](https://protegra.io/licensing/licences/investment-firm/estonia/) | ✓ | |
| [Germany: Investment firm licence (Erlaubnis zur Erbringung von Wertpapierdienstleistungen nach § 15 WpIG)](https://protegra.io/licensing/licences/investment-firm/germany/) | ✓ | |
| [Hong Kong: Type 7 Licence for Providing Automated Trading Services](https://protegra.io/licensing/licences/investment-firm/hong-kong-type7/) | | ✓ |
| [Ireland: Investment Firm Authorisation (MiFID II)](https://protegra.io/licensing/licences/investment-firm/ireland/) | ✓ | |
| [Italy: Società di Intermediazione Mobiliare (SIM) investment firm licence](https://protegra.io/licensing/licences/investment-firm/italy-sim/) | ✓ | |
| [Latvia: Investment firm licence](https://protegra.io/licensing/licences/investment-firm/latvia/) | ✓ | |
| [Lithuania: Financial brokerage firm licence](https://protegra.io/licensing/licences/investment-firm/lithuania/) | ✓ | |
| [Luxembourg: Investment firm authorisation](https://protegra.io/licensing/licences/investment-firm/luxembourg/) | ✓ | |
| [Malta: Investment services licence (Category 1, 2, or 3)](https://protegra.io/licensing/licences/investment-firm/malta/) | ✓ | |
| [Netherlands: Investment firm licence (Vergunning beleggingsonderneming) under Wft Article 2:96 and MiFID II](https://protegra.io/licensing/licences/investment-firm/netherlands/) | ✓ | |
| [Poland: Brokerage House licence (dom maklerski)](https://protegra.io/licensing/licences/investment-firm/poland-brokerage/) | ✓ | |
| [Slovakia: Investment firm licence (povolenie na poskytovanie investičných služieb pre obchodníka s cennými papiermi)](https://protegra.io/licensing/licences/investment-firm/slovakia/) | ✓ | |
| [Spain: Sociedad de Valores y Agencia de Valores (SV / AV) investment firm licence](https://protegra.io/licensing/licences/investment-firm/spain-broker-dealer/) | ✓ | |

## 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.

## Sources

1. [MiFID II Annex I, Section A(8)](https://eur-lex.europa.eu/eli/dir/2014/65/oj): retrieved 2026-09-24

Last verified 2026-09-24 · Author: Danil Marmysh · Reviewed by Anastasia Sidorenkova · © Protegra. Data: CC BY 4.0, cite "Protegra Licensing Atlas". Not legal advice.