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  • 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 a Multilateral Trading Facility ("MTF"); or
      (b) operating an Organised Trading Facility ("OTF").
      (2) In (1)(a), a Person operates an MTF if that Person operates a system which brings together multiple third party buying and selling interests in Investments, in accordance with its non-discretionary rules, in a way that results in a contract in respect of such Investments.
      (3) In (1)(b), a Person operates an OTF if that Person operates a system which brings together multiple third party buying and selling interests in Investments, in accordance with its discretionary rules, in a way that results in a contract in respect of such Investments.
      [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 an OTF 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, a Person operating an OTF has more flexibility relating to how it applies its rules to participants on its facility, whereas a Person operating an MTF 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 not Operate an Alternative Trading System to the extent that it Operates a Crowdfunding Platform.

        [Added] DFSA RMI201/2017 (Made 14th June 2017). [VER40/08-17]