Recital 4

(4) Article 1(7) of Directive 2014/65/EU requires systems and facilities in which multiple third-party buying and selling trading interests in financial instruments are able to interact (‘multilateral systems’) to operate in accordance with the requirements concerning regulated markets, multilateral trading facilities (MTFs) or organised trading facilities (OTFs). However, market practice, as evidenced by the European Supervisory Authority (European Securities and Markets Authority) (ESMA) established by Regulation (EU) No 1095/2010 of the European Parliament and of the Council (5) in its final report of 23 March 2021 on the functioning of organised trading facilities, has shown that the principle of multilateral trading activity requiring authorisation has not been upheld in the Union, which has led to an uneven playing field between multilateral systems that are authorised as a regulated market, an MTF or an OTF and multilateral systems that are not authorised as such. In addition, that situation has created legal uncertainty for certain market participants as to the regulatory expectations for such multilateral systems. To provide market participants with clarity, to safeguard a level playing field, to improve the functioning of the internal market and to ensure the uniform application of the requirement that hybrid systems perform multilateral trading activities only where they are authorised as a regulated market, an MTF or an OTF, the content of Article 1(7) of Directive 2014/65/EU should be moved from Directive 2014/65/EU to Regulation (EU) No 600/2014. In view of the removal of multilateral systems from the scope of Article 1(7) of Directive 2014/65/EU and their inclusion within the scope of Regulation (EU) No 600/2014, it is also appropriate to move the definition of ‘multilateral system’ to that Regulation.

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Source: EUR-Lex (Cellar) · retrieved 2026-10-16 · Text as adopted (Official Journal); later amendments are not incorporated in this text.