MTFs are operated by regulated market operators or large investment firms. They are based on sophisticated electronic systems and matching software that allow for very fast order execution. They are meant to enhance competition within the European Union trading services market.[

A MTF facilitates the exchange of financial instruments between multiple parties. Multilateral trading facilities allows eligible contract participants to gather and transfer a variety of securities, especially instruments that may not have an official market. These facilities are often electronic systems controlled by approved market operators or larger investment banks. Traders will usually submit orders electronically, where a matching software engine is used to pair buyers with sellers.

Multilateral trading facilities offer retail investors and investment firms an alternative venue to trading on formal exchanges. Additionally, MTFs have less restrictions surrounding the admittance of financial instruments for trading, allowing participants to exchange more exotic assets.

As of May 2014, the European Securities and Markets Authority (ESMA) has identified 145 MTFs operating in continental Europe and the U.K. The list includes MTFs owned by BGC Partners, Inc., Cantor, Chi-X, Eurex, GFI Group, ICAP, Liquidnet, MarketAxess, MF Global, NYSE, Nasdaq OMX, Reuters, Tullett Prebon, and Tradeweb.