In the mid-1990s, scandal at the Nasdaq led to a change in order-handling rules and ushered in the era of the ECN
It began with ECNs
, but is rapidly moving beyond them to a new frontier.
They punished the collusion by broadening public access to the market, and opened the door to new ECNs
should theoretically aggregate the postings of all participating market-makers, perhaps on a consolidated basis in the near future.
It is one of the four original ECNs
approved in January 1997 by the SEC.
ColorBook integrates the full depth of order books from ECNs
, exchanges and other liquidity sources into a premium, high-performance, real-time data feed.
Adds Robert Iati, research director for Securities and Capital Markets at TowerGroup, "Combining two of the largest, and more technologically-advanced and open ECNs
will certainly go a long way toward building an accessible, concentrated liquidity pool-something institutional and individual investors have been seeking," he said.
and to extend the network through partnership arrangements with third party distributors including software and application providers, ECNs
The announcement means that three of the largest ECNs
in the country -- Island ECN
, Archipelago, and REDIBook -- now participate in 3DStockChart's 'virtual' limit order book.
Interestingly, as the NASDAQ Composite fell and liquidity began to dry up in early April, the ECNs
began to account for more of NASDAQ trading, suggesting that NASDAQ investors have been more successful finding liquidity in the ECNs
in the less active periods.
, brokerage firms and financial institutions means that MidasTrade GDAN is now truly a two way network providing both incoming and outgoing orders between Korea and the U.
, or Electronic Communications Networks, operate as Internet-based alternatives to the established NYSE and Nasdaq exchanges.