[ESMA 70-872942901-38 MiFID II MiFIR market structures Q&A, Q&A 5.9b]

Multilateral systems are defined by MiFID II in relation to financial instruments. Securities financing transactions include, according to Article 3(11) of Regulation (UE) 2015/2365 (SFTR), repurchase transactions, securities financing lending or borrowing, buy-back or sell-buy back transactions and margin lending transactions, and such transactions can involve financial instruments. Therefore, ESMA considers that securities financing transactions could be treated as transactions in financial instruments, for the purpose of this question.

In particular, an entity operating a system in which multiple third-party buying and selling trading interests in securities financing transactions relating to financial instruments are able to interact, should seek authorisation to operate a trading venue and the relevant provisions should apply.