Trading center
The trading center ( English trading venue ) is a legal term from the stock market , financial market surveillance - and securities law , among exchanges , multilateral trading facilities and organized trading systems are to be understood.
General
This legal definition from Section 2 (5) of the BörsG makes it clear that not only geographical locations such as securities and commodity exchanges are considered trading venues , but also computer-based trading systems with special software. Trading venue is a central term of MiFID II , to which the BörsG expressly refers ( § 26d BörsG). These three types of trading venues are based on the 2nd FiMaNoG.
Legal issues
In terms of securities law , a trading venue is an organized market , a multilateral trading facility or an organized trading facility in accordance with Section 2 (22) WpHG . According to Section 2 (11) of the WpHG, an organized market is a multilateral system that is operated or administered in Germany, in another EU member state or in another signatory to the Agreement on the European Economic Area , approved, regulated and monitored by government agencies and which serves the interests of a large number of people brings together or promotes the bringing together of persons involved in the purchase and sale of financial instruments admitted to trading there within the system and in accordance with non-discretionary provisions in a manner that leads to a contract for the purchase of these financial instruments. According to Section 2 (21) of the WpHG, a multilateral system is a system or a mechanism that brings together the interests of a large number of third parties in the purchase and sale of financial instruments within the system. According to Section 2 (8) No. 9 WpHG, an organized trading system is the operation of a multilateral system that is not an organized market or a multilateral trading system and that serves the interests of a large number of third parties in the purchase and sale of bonds and structured financial products , Carbon credits or derivatives within the system in a way that results in a contract for the purchase of these financial instruments.
The only exception is for operators of organized trading systems who are allowed to trade for their own account in the system with regard to illiquid public debt instruments ( section 75 (3) of the WpHG). The off-exchange trading is not a trading center because, as the interbank market is not and does not take place in a single location with a single trading system.
economic aspects
Bilateral systems must be distinguished from multilateral systems . Bilateral systems are characterized by the fact that the system operator trades in the system for his own account. However, the exact delimitation of multilateral and bilateral systems is controversial among various European supervisory authorities . Accordingly, it is currently not possible in many EU countries - with the exception of Germany - to organize multilateral trading within the framework of a single market maker system in which only one market maker sets prices and is the counterparty to all buyers and sellers . Systematic internalisers and other OTC market makers operate bilateral systems and trade with their customers in the system for their own account.
Others
The trading center is also a place where there is intensive trade in goods . The seaports and Hanseatic cities have always been important trading centers .
Individual evidence
- ↑ Federal Law Gazette . Retrieved September 20, 2017 .
- ↑ Christoph Kumpan / Hendrik Müller-Lankow: One-Market-Maker-Systems in the new capital market regulation - differentiation between multilateral and bilateral systems . In: WM . 2017, p. 1777 ff .
- ^ Gabler Wirtschaftslexikon, Over-the-Counter Market
