Risk glossary

Organised trading facilities are multilateral trading venues in the European Union enabling third parties to trade bonds, derivatives, structured finance products and emission allowances but not equities. In contrast to multilateral trading facilities, the operator of an OTF exercises discretion in the order matching process. OTF transactions can involve voice trading. Those using OTFs are characterised as clients rather than participants or members. The operator of an OTF cannot own a systematic internaliser in the same legal entity.

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