Organized trading facility (OTF) - Financial definition
Financial acronyms
The entire acronym collection of this site is now also available offline with this new app for iPhone and iPad.
Concise definition of the term organized trading facility
An organized trading facility is a multilateral system that is not a regulated market or a multilateral trading facility (MTF). Within an OTF, multiple third-party buyers and sellers in bonds, structured finance products, emission allowances or derivatives are able to interact in a way that results in a contract. Equities are not allowed to be traded through an OTF.
Comprehensive definition of the term organized trading facility
OTF is a new category of trading venue that has been introduced by MiFID II, in addition to two existing types, which are regulated markets (RMs) and multilateral trading facilities (MTFs) and which had been introduced by the first MiFID regulation.