MTF (multilateral trading facility) definition
Under MiFID in European law, a multilateral trading facility provides a different venue for investors or investment firms to trade on formal exchanges.
These facilities are alternatives and competition to traditional stock exchanges, and are self-regulated. Investors can use multilateral trading facilities to trade in different securities, including instruments that may not be listed on an official market. These facilities are run by market makers and large investment banks, which help to pair buyers and sellers looking to trade.
The US equivalent of multilateral trading facilities are known as alternative trading systems.