Securities Law & Instruments


OSC STAFF NOTICE 21-711 MULTILATERAL TRADING FACILITIES –

EXEMPTION FROM REQUIREMENT TO BE RECOGNIZED AS AN EXCHANGE

A multilateral trading facility (MTF) is a multilateral system, operated in the European Union by an investment firm or market operator, which brings together multiple third-party buying and selling interests in financial instruments in accordance with non-discretionary rules in a way that results in a contract.

Because MTFs have self-regulatory responsibilities, they are considered “exchanges” under Ontario securities law. If an MTF provides access to participants in Ontario, it is considered to be doing business in Ontario and must be recognized as an exchange or obtain an exemption from recognition.

Bloomberg Trading Facility Limited (Bloomberg MTF) has been authorized by the U.K. Financial Conduct Authority to act as the operator of a MTF. Bloomberg MTF has applied for, and the Commission has issued, an interim order exempting Bloomberg MTF from the requirement to be recognized as an exchange, subject to the terms and conditions set out in the order. A copy of the interim exemption order is in chapter 2 of the Bulletin and on the OSC website.

Please refer any questions to

Timothy Baikie
Senior Legal Counsel, Market Regulation
416-593-8136
tbaikie@osc.gov.on.ca

Louis-Philippe Pellegrini
Legal Counsel, Market Regulation
416-593-8270
lpellegrini@osc.gov.on.ca

Alex Petro
Trading Specialist, Market Regulation
416-263-3796
apetro@osc.gov.on.ca