Q&A · ESMA
Organized Trading facilities OTFs
Answered
Read the official text on the ESMA website(opens in a new tab)AI-generated Summary
A fully automated system can still be an OTF: discretion over placing, retracting or matching orders can be exercised through algorithms if they take account of external factors and apply best execution or client instructions, whereas human intervention without real judgement is not discretion.
Details
| Reference | ESMA_QA_1653 |
|---|---|
| Issuer | ESMA |
| Published | 3 Apr 2017 |
| Answered | 3 Apr 2017 |
| Submitted | 3 Apr 2017 |
| ESMA topics | Multilateral and bilateral systems |
| Earlier Q&A document | ESMA 70-872942901-38 MiFID II MiFIR market structures Q&A, Q&A 5.21 |
Provisions it relates to
- Article 20 MiFID II · Specific requirements for OTFsInferred · 90%
- MiFID II (whole act)Explicit reference