The growth of MTFs, i.e. trading, social trading or signalling platforms is noticeable in Serbia in recent period.
The Law on Capital Markets provides a framework for incorporation of trading, social trading or signalizing platforms, and defines them as multilateral trading facility/platforms (the „MTF“). MTF is a multilateral system, operated by an investment firm or a market operator, which brings together multiple third-parties buying and selling interests in financial instruments – within the system and in accordance with its non-discretionary rules – in a way that results in a contract in accordance with the Law on Capital Markets.
The Law on Capital Markets and relevant bylaws provides the requirements for license which must be obtained by an entity which will organize trading on the MTF, i.e. market operator. The license is not required for the establishment of the MTF, but for an entity which will establish the MTF. The investment companies may establish the MTF if it obtains a specific license for market operator from the Commission.
The license for market operator will be issued by the Commission after the complete documentation is submitted, which includes general acts, business models, information on organizational structure and members of the corporate government, as well as capital requirements proofs, and fees evidence to the Commission. Fees include fees for obtaining the license or amendments to the license in accordance with Commission’s bylaws. In regard to the capital requirements, initial capital for the MTF market operator amounts EUR 730,000 depending on type of services. The MTF market operator should maintain minimum capital requirements in accordance with the Commission’s regulations.
Relatively small and undeveloped market. There is no publicly available information about the number of customers of companies operating in the sector of trading, social trading or signalling platforms. A list of registered companies to perform this activity can be found on: http://www.sec.gov.rs/index.php/en/.