ERM Glossary: Organised trading facility (OTF)

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An organised trading facility is any facility or system that is designed to bring together buyers and sellers of financial instruments. No rules were introduced on such facilities by the original MIFID directive, but at the time of writing (early 2012) MIFID II is planning to regulate such facilities in much the same way as Multilateral trading facilities.


OTFs are similar in scope to swap execution facilities (SEFs) created by the Dodd-Frank Act in the USA, with the aim of bringing greater transparency and structure to the OTC derivative market.


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