Regulated Markets, Alternative Trading Venues & Systematic Internalisers in Europe

The purpose of this paper is to explain the similarities and differences between regulated markets (RMs), alternative trading venues (i.e. multilateral trading facilities / MTFs and organised trading facilities / OTFs), and systematic internalisers (SIs) in Europe. The structure of the paper is as follows. Paragraph II provides an overview of the main terms and definitions. Subsequently, the authors discuss the MiFID II scope in relation to RMs, alternative trading venues, and SIs (paragraph III). This is followed by a treatment of the organisational requirements for RMs, alternative trading venues, and SIs (paragraph IV). Then, the MiFID II pre- and post-trade transparency rules are discussed, both for equity (paragraph V) and nonequity (paragraph VI). The authors end with some concluding observations (paragraph VII).