Multilateral trading facilities

Abstract

This paper describes the impact on Financial Markets of the implementation of the MiFID Directive in 2007, which allowed the liberalization of financial services, promoting the creation of a Single Market, characterized by free competition between the different trading venues for Financial Instruments. It explains how Multilateral Trading Systems work, being one of the trading alternatives admitted by the Directive, as well as the main types of MTFs that predominate both in Spain and in Europe. On the other hand, it describes the functioning of the dark pools, being another type of MTF, which is characterized by operating with large trading volumes where there is no pre-trade transparency. Finally, we study the market share held by these SMNs in Spain for the periods between 2016 and 2019, which were delayed due to the existing post-contracting infrastructure in our country.