Entire Section

  • 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]