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Execution venues can be defined as a regulated market but as a whole is a broad financial term that covers a wide scope of trading terminology.
A market in which government and regulatory bodies supervise and exert some degree of control is known as a regulated market.
Execution venues may also include an organized trading facility, systemic internalizers, market makers, multilateral trading facility, or other liquidity providers that operate under a similar capacity but generally from a third world country.
What is an Execution Venue Composed of?
A system or any facility that is designed to connect both buying and selling interests along with market orders regarding financial instruments is known as an organized trading facility.
Generally, organized trading facilities are operated by an investment firm, market operator, or a credit institution.
A systemic internalizer is an investment firm that deals their own account by executing clients’ orders outside a regulated market on a structured, reoccurring, and systemic basis.
Also known as a liquidity provider, a market maker is a generally a company or sometimes an individual that aims to make a profit on the bid-ask spread by quoting both the buy and sell price of a financial instrument or held commodity.
A multilateral trading facility (MTF) is a European regulatory term used to describe a self-regulated financial trading venue.
These typically serves as alternatives to the traditional stock exchanges through the use of electronic systems.
An execution venue may also be used to describe exchange-traded funds and equity cash funds.