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Function that specifies how different spatial frequencies are handled by the system; describes how the optics project light from the object or scene onto a photographic film, detector array, retina, screen, etc.
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.
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This would force shares currently traded off an exchange to move on to bourses or similar platforms that are more heavily regulated than OTFs.
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Exchanges argue there is no need for a new OTF category and that contracts should be channelled to the existing, more strictly platforms like themselves.
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The planned new breed of Organised Trading Facility (OTF) platform for trading contracts currently handled between banks should be limited to non-equities, meaning mainly derivatives.