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Regulated Trading Facilities

Definition

Regulated trading facilities are venues where financial assets are exchanged under specific governmental oversight. These are platforms, such as stock exchanges or derivatives markets, that operate under the direct supervision of financial authorities to ensure fair and transparent trading practices. They adhere to strict rules regarding market conduct, participant eligibility, reporting requirements, and capital adequacy. Their purpose is to provide a secure and orderly environment for price discovery and liquidity, protecting investors from manipulation and fraud.