Operating an organised trading facility (OTF)
Operating a discretionary multilateral trading system for non-equity instruments such as bonds and derivatives requires an investment firm licence under MiFID II Annex I, Section A(9). Authorised OTF operators can passport across the EEA, and are permitted to exercise discretion when routing orders and facilitating negotiations between professional market participants.
Definition
Running a multilateral system for non-equity instruments where the operator exercises discretion over order execution.
- MiFID II, Annex I, Section A(9): 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 (povolení k činnosti obchodníka s cennými papíry - OCP)
CNB
- IF · Estonia
Authorisation as an investment firm
FI
- IF · Germany
Investment firm licence (Erlaubnis zur Erbringung von Wertpapierdienstleistungen nach § 15 WpIG)
BaFin
- IF · Ireland
Investment Firm Authorisation (MiFID II)
CBI
- IF · Italy
Società di Intermediazione Mobiliare (SIM) investment firm licence
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 (Vergunning beleggingsonderneming) under Wft Article 2:96 and MiFID II
AFM
- IF · Poland
Brokerage House licence (dom maklerski)
KNF
- IF · Slovakia
Investment firm licence (povolenie na poskytovanie investičných služieb pre obchodníka s cennými papiermi)
NBS
- IF · Spain
Sociedad de Valores y Agencia de Valores (SV / AV) investment firm licence
CNMV
Where it can be licensed
Frequently asked questions
Which financial instruments can be traded on an organised trading facility?
OTFs are restricted to non-equity instruments, including government and corporate bonds, structured finance products, emission allowances and financial derivatives. Equities and exchange-traded funds cannot be admitted to trading on an OTF.
How does operator discretion work on an OTF?
Unlike MTFs with deterministic rulebooks, an OTF operator may exercise discretion at two stages: when deciding to place or retract an order on the facility, and when deciding whether and when to match two or more client orders.
Sources
- MiFID II Annex I, Section A(9) · retrieved 2026-09-24
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