MTF brokers have a green light for promotion in France

JFD Brokers, a broker offering FX services, focusing primarily on the French market, said that he is working on the introduction of a new product based on the MTF model. This is to be a way to continue the offensive on the French market.

Advertising ban on development motivation?

At the beginning of this year, AMF, the French equivalent of the KNF, introduced new regulations that impose a number of new obligations on Forex brokers providing services on the local market (including the introduction of Stop Loss order execution guarantees). There are also new bans - no possibility of advertising (of a certain type) on the Forex and binary options markets. We wrote more about it in a separate article. It's just that these entries resulting from the Sapin 2 Act do not include the MTF model.

Extending the offer towards the exchange of orders is opening the door to continuing free operations on the French market. Is it possible to conclude that the advertising ban itself somehow leads to the development of this market? For many investors, the MTF model is extremely valued and sought after. IG Group in its annual report also mentions the ongoing work on the introduction of MTF-based products for European customers to the offer.

What is the MTF model

An MTF broker, or Multilateral Trading Facility, is a company operating in the stock exchange order execution model. For a trader, in practice, this means, first of all, there is no possibility of a conflict of interest on the broker <-> client line. Every client's order, even the smallest one, has to go through the order book. Additionally, there is no "last look" phenomenon (read what is "Last Look"), and this has a significant impact on the price of the order, as well as the speed of execution.

Be sure to read: MTF Stock Model 

One of the first brokers in the world to decide to operate in the MTF model, which has also been focusing on the development of this technology for years, is the British LMAX Exchange.