A trading model which allows all market participants to trade directly with each other, as opposed to traditional client-to-dealer or client-to-client models, providing access to a broad range of liquidity.
APA - Approved publication arrangement
A requirement introduced under MiFID II intended to increase transparency in OTC markets. Firms executing transactions must publish trade reports through an APA, which checks trade reports for accuracy, before publishing to the wider market in a prescribed standard.
COFIA - Classification of Financial Instruments
Classes of financial instruments approach, proposed by ESMA as a method of assessing whether a non-equity instrument is liquid enough to be subject to pre-trade transparency rules under MIFID II, by grouping instruments into broad classes.
IBIA - Instrument by instrument approach
Instrument-by-instrument approach proposed by EMSA as a method of assessing whether a non-equity instrument is liquid enough to be subject to pre-trade transparency rules based on its individual characteristics under MiFID II.
MiFIR - Markets in Financial Instruments Regulation
European regulation that complements the measures in MiFID II but be applied in local law as drafted, with no scope for interpretation.
OTF - Organised trading facility
Mandated in Europe under MiFID II, organised trading facilities are systems designed to bring together buying and selling interests in non-equities that allow discretion in trading behaviour. OTFs only represent non-equity markets while MTFs represent all securities markets.