Multilateral Trading Facility (MTF) is an electronic trading system that allows multiple parties to place orders to buy and sell financial instruments. MTF serves as an alternative to traditional exchanges, providing participants with additional opportunities for conducting transactions.
Key characteristics of MTF include:
Openness: MTF is open to the participation of various market participants, including investors, brokers, and other financial institutions. This creates a more competitive and open environment.
Transparency: MTF provides information on current prices, trade volumes, and other data, contributing to a high level of market transparency.
Independence: MTF is not an exchange and does not have its own securities. It acts as an intermediary, providing an environment for transactions between participants.
Flexibility: MTF participants can place various types of orders, such as market orders, limit orders, stop orders, and others. This gives traders greater flexibility in managing their transactions.
Liquidity: MTF aggregates liquidity from various sources, including banks, brokers, and other market participants.
Low Transaction Costs: Due to competition among different MTFs and exchanges, traders may benefit from lower transaction costs.
Electronic Trading: MTF operates in an electronic format, ensuring fast and efficient trade execution.
