Discover the advantages of a multilateral trading facility (MTF) – including non-discretionary rules, transparent pricing and MiFID II compliance – as well as the specific benefits of using Spectrum Markets.
This is because MTFs are independent of any buying and selling interests, and simply connect the two to execute trades. This differs from some over-the-counter markets, where orders can be cancelled in certain circumstances – for example, if the market maker decides it doesn’t want to take on too much exposure at a certain price.
Post-trade, users can see the time, price and volume of all trading activity on the MTF. These details can be downloaded for any time period, which gives traders the opportunity to analyse how buying and selling pressures have changed.
Such orders can be placed at any price – potentially inside the spread – so these interactions can influence pricing across the MTF. And, because of the transparency rules that govern multilateral trading facilities, traders can see if anyone else has executed a trade at a better price.
These regulations ensure that all trades executed on an MTF are subject to the same standards, regardless of which broker and market maker are connected for the purposes of the trade. They have also increased competition between market makers by requiring complete transparency on pricing.
