MTF advantages

A Multilateral Trading Facility (or MTF) is a specific type of European financial trading system.
MTF operates as an exchange lite, with a key difference between an exchange (such as NYSE, LSE, NASDAQ) being that an MTF cannot trade IPOs.

Key features of the LMAX MTF are:

  • LMAX platform is fully developed using Java and uses world's leading ultra-fast messaging technologies;
  • Liquidity providers stream prices into the MTF using FIX protocol as limit orders;
  • Due do non-matching rules between liquidity providers, traders can benefit from 0-spreads;
  • Matching occurs directly at the MTF book, and execution reports then sent out to the trader, clearing broker and the counterparty;
  • Due to the fact that matching occurs inside the MTF venue, ultra-fast execution is guaranteed, there's no possibility for requotes and slippages are minimal;
  • Many ECNs and other brokers are using LMAX MTF as execution venue for their trades, deepening the liquidity;
  • Regulated by FSA.


To address the general confusion between ECN and MTF please see a diagram below: