MiFID II will significantly increase the regulation of almost all types of secondary market trading activities and functions. It will introduce a new multilateral trading venue, known as an Organised Trading Facility (OTF) and extend the bilateral Systematic Internaliser (SI) regime beyond equity instruments to certain investment firms that trade in bonds, derivatives and equity-like instruments.

What is a multilateral venue?

There will be three multilateral venues under MiFID II, as follows:

  • A Regulated Market (RM), which is a multilateral system operated by a market operator, which brings together or facilitates the bringing together of multiple third-party buying and selling interests in financial instruments – in the system and in accordance with its non-discretionary rules – in a way that results in a contract, in respect of financial instruments admitted to trading under its rules and/or systems, and which is authorised and functions regularly and in accordance with Title III of MiFID II. The list of RMs currently includes the London Stock Exchange Main Market, BATS Europe, Intercontinental Exchange Futures Europe, Euronext London and LIFFE.