Entire Section
GEN 2.22 GEN 2.22 Operating an alternative trading system
GEN 2.22.1 GEN 2.22.1
(1) In Rule 2.2.2,Operating an Alternative Trading System means:(a) operating aMultilateral Trading Facility ("MTF"); or(b) operating anOrganised Trading Facility ("OTF").(2) In (1)(a), aPerson operates an MTF if thatPerson operates a system which brings together multiple third party buying and selling interests inInvestments , in accordance with its non-discretionary rules, in a way that results in a contract in respect of suchInvestments .(3) In (1)(b), aPerson operates an OTF if that Person operates a system which brings together multiple third party buying and selling interests inInvestments , in accordance with its discretionary rules, in a way that results in a contract in respect of suchInvestments .[Added][VER4/08-05]
[Amended] DFSA RM119/2013 (Made 14th July 2013). [VER33/07-13]GEN 2.22.1 Guidance
The main distinction between operating an
MTF and operating anOTF is that the former is operated in accordance with the non-discretionary rules adopted and implemented by the operator, whereas the latter is operated in accordance with the discretionary rules of the operator. Accordingly, aPerson operating anOTF has more flexibility relating to how it applies its rules to participants on its facility, whereas aPerson operating anMTF is required to apply its rules in a non-discretionary manner across all participants on its facility.[Added] DFSA RM119/2013 (Made 14th July 2013). [VER33/07-13]Exclusion
GEN 2.22.2
A
Person does not carry on the activity of the kind specified in Rule 2.22.1 if it operates a facility which is merely an order routing system where buying and selling interests in, or orders for,Investments are merely transmitted but do not interact.[Added][VER4/08-05]
[Amended] DFSA RM119/2013 (Made 14th July 2013). [VER33/07-13]GEN 2.22.3
A
Crowdfunding Operator does notOperate an Alternative Trading System to the extent that itOperates a Crowdfunding Platform .[Added] DFSA RMI201/2017 (Made 14th June 2017). [VER40/08-17]