electronic communications network


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Electronic Communication Network

A computer system that facilitates over-the-counter trading as well as exchange trading. The electronic communication network sends buy or sell orders to the appropriate specialist on the floor of a stock exchange, bypassing the floor broker. A company running an ECN charges a fee for its services.

electronic communications network (ECN)

A computerized trading network that matches buy and sell orders entered electronically by customers. Orders that cannot be immediately matched are posted for viewing by investors who may wish to take an offsetting position. Instinet became the first ECN when it started business in 1969. Archipelago and Island are two other large electronic communications networks. One study indicated that in January 2001 ECNs handled over 50% of all Nasdaq transactions.

Electronic communications network (ECN).

An ECN is an alternative securities trading system that collects, displays, and executes orders electronically without a middleman, such as a specialist or market maker.

Trading on an ECN allows institutional and individual investors to buy and sell anonymously. Further, ECNs facilitate extended, or after-hours, trading.

ECN trade execution can be faster and less expensive than trades handled through screen-based or traditional markets, though the volume is sometimes thin.

However, some ECNs have been approved for official stock exchange status, expanding the number of stocks that can be traded on their systems.

References in periodicals archive ?
Overall, the delegations support the proposal's objective of cutting civil engineering costs, which can account for up to 80% of total deployment costs, and of fully exploiting synergy between electronic communications networks and other utilities.
Electronic communications networks (ECNs), however, represent an emerging band of competitors.
Directive 98/10/EC will in due course be replaced by a new Directive on Universal Service and Users' Rights*, relating to Electronic Communications Networks and Services.
Individual investors may be reaping the benefits of the explosive growth of electronic communications networks (ECNs), but institutional investors may be suffering.
Electronic communications, including studies of performance: The construction and maintenance of civil engineering, electronic communications networks, the work of wiring electronic communications networks.

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