What Is a Multilateral Trading Facility (MTF)?

A multilateral trading facility (MTF) is a European word for a trading system that allows numerous parties to trade financial products.
MTFs enable authorized contract participants to gather and transfer a wide range of securities, including those with no formal market. Electronic systems managed by approved market operators or larger investment institutions are frequently used to provide these services. Traders often place orders online, and a matching software engine connects buyers and sellers.