Knowledge Base

Which type of execution venue under MiFID II specialises in non-equity instruments and allows discretionary rules to be applied?

Regulated Market (RM)

Multilateral Trading Facility (MTF)

Organised Trading Facility (OTF)

Systematic Internaliser (SI)

Which execution method is particularly suited for less liquid bond markets?

Trading in the central limit order book (CLOB)

Market making

Request for Quote (RFQ)

Fixing

What role do market makers play in market making?

They set a single equilibrium price at fixed times

They provide continuous two-way quotes to ensure liquidity

They execute client orders against their own capital

They trade exclusively in continuous mode

What is the fundamental characteristic that distinguishes a Multilateral Trading Facility (MTF) from a Regulated Market under MiFID II?

The MTF can apply discretionary rules for order matching

The MTF can be operated by an investment firm in addition to a market operator

The MTF can only trade non-equity instruments

The MTF does not need to comply with pre- and post-trade transparency rules

Regulated Market (MiFID II)

Click to see answer

Dark pools are generally considered Multilateral Trading Facilities (MTFs) where post-trade transparency is reduced.

True

False

A Systematic Internaliser (SI) must publish firm quotes for liquid instruments with a minimum size of 10% of the standard market size.

True

False