Knowledge Base

Which mechanism ensures that all orders are processed according to the same objective criteria on a regulated market?

Time-price priority

Price-time priority

Random priority

Priority by order size

What is the primary objective of the 2012 EMIR regulation concerning OTC derivatives?

To increase OTC market liquidity

To reduce systemic risks by imposing central clearing for certain derivatives

To completely eliminate OTC markets

To standardise all OTC contracts

What is the main distinguishing criterion between a regulated market and a multilateral trading facility (MTF) under MiFID II?

The type of financial instruments traded

The admission regime for instruments and members

The geographical location of the market

The language used for transactions

What is a key characteristic of over-the-counter (OTC) markets?

They use a centralised order book

They involve bilateral transactions without a central order book

They are always guaranteed by a clearing house

They are reserved for large companies

Transactions on a regulated market always benefit from the guarantee of a clearing house.

True

False

Multilateral trading facilities (MTFs) must meet the same admission criteria as regulated markets.

True

False

Definition of an MTF

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Categorize items by dragging them to the appropriate zones

Items to categorize:

Central order book

Non-discretionary rules

Strict admission regime

Bilateral transactions

Categories:

Regulated markets (R)

Multilateral trading facilities (M)

Over-the-counter markets (O)