ESMA_QA_1643

Status: ✅ Answer Published

Link to ESMA Q&A tool: https://www.esma.europa.eu/publications-data/questions-answers/1643

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Regulatory Context

Regulation : MIF2

Level 1 Regulation: Markets in Financial Instruments Directive II (MiFID II) Directive 2014/65/EU- Secondary Markets

Level 2 Regulation: No information available

Level 3 Regulation: No information available

Topic: Multilateral and bilateral systems

Subject Matter: Organized Trading facilities OTFs

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Question

Submission Date: 03 April 2017

Does the concept of OTF apply to voice trading and, if yes, when an investment firm executing transactions through voice negotiation should be considered as falling under the definition of OTF?

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ESMA Answer

Answer Date: 03-04-2017

[ESMA 70-872942901-38 MiFID II MiFIR market structures Q&A, Q&A 5.11] Yes. MiFID II is technology neutral and the OTF definition includes voice trading in the same way as the definition of regulated markets and MTFs include voice trading systems. An investment firm executing transactions through voice negotiation would be considered as falling under the definition of an OTF where the arrangements in place would meet the conditions set out in Q&A 1635.

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This document was automatically extracted from the ESMA EMIR Q&A database.