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Equities are much too fragmented and OTFs would have introduced another layer of fragmentation, Hardt said.
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The United States has finalised rules for its own version of OTFs to rival existing exchanges.
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The aim of OTFs is to provide a platform for diverse instruments currently traded off an exchange.
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The OTF plans are part a draft EU securities law to reform the current markets in financial instruments directive or MiFID.
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London, however, is likely to emerge a winner as home to OTFs, just as it is did to alternative share trading platforms.
Usage of organised trading facility in English
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The planned new breed of OrganisedTradingFacility (OTF) platform for trading contracts currently handled between banks should be limited to non-equities, meaning mainly derivatives.