UK multilateral trading facility (UK MTF)

Glossary

In UK MiFIR, a multilateral system, operated by a UK investment firm or UK market operator, which both:

Brings together multiple third-party buying and selling interests in financial instruments (in the system and in accordance with non-discretionary rules) in a way which results in a contract.
Complies, as applicable, with:
- paragraph 9A of the Schedule to the Financial Services and Markets Act 2000 (Recognition Requirements for Investment Exchanges, Clearing Houses and Central Securities Depositories) (SI 2001/995);
- the EU regulations specified in Schedule 2 to UK MiFIR;
- rules made by the Financial Conduct Authority (FCA) governing the operating conditions of investment firms so far as they apply to MTFs.

A UK investment firm or UK market operator is one that has its head office in the UK.

(Article 2(1)(14A), UK MiFIR).

The UK Takeover Code adopts this definition in UK MiFIR in defining "UK multilateral trading facility".

For example, AIM is a UK MTF operated by the London Stock Exchange (LSE) as a UK recognised investment exchange (UK RIE).

A UK MTF is a UK trading venue under UK MiFIR and is distinct from a UK regulated market.

For more information, see Practice note, Exchanges and markets: UK MTFs operated by UK RIEs.

When considering this term in the context of financial services reference should be made to the FCA Handbook glossary definition of UK MTF.

UK multilateral trading facility (UK MTF) | Practical Law