ECN

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ECN (1)

Electronic Communications Network. Defined under Rule 11Ac1- 1(a)(8) under the U.S. Securities Exchange Act of 1934.

ECN (2)

See: Emerging company marketplace

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.

ECN

See electronic communications network.

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.

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References in periodicals archive ?
In the mid-1990s, scandal at the Nasdaq led to a change in order-handling rules and ushered in the era of the ECN.
Electronic trading: portal to the future? Technological advances are moving markets toward an all-electronic environment, thanks in part to the growth of electronic exchanges. But the specialist system is far from dead, and some experts see a continuing need for at least occasional human intervention
The fundamental difference between ECNs and NYSE and Nasdaq market makers is that the ECNs are electronic auction systems that can execute trades without human intervention.
THE INTERNET AND THE FUTURE OF FINANCIAL MARKETS
It began with ECNs, but is rapidly moving beyond them to a new frontier.
ECN: A new force in the stock markets? (Global Securities)
These ECNs did many of the same things as Instinet - and, in some cases, more.
The Trade Show
For example, direct client-to-client matches account for approximately 45 percent of daily trading volume on the Hotspot FXi ECN, totaling several billion dollars.
Aegis Software Extends Algo Trading to Foreign Exchange; Multi-Asset Order Execution Platform Establishes Montage Across Cash FX ECNs
Yet ECNs can perform the same function - the unique role of a market-maker is providing liquidity when no one else is willing to do so.
A Forecast: Trading in 2001: Of Markets and Mania
and to extend the network through partnership arrangements with third party distributors including software and application providers, ECNs and exchanges.
Blue System and Transaction Network Services Ink Three-Year Marketing Collaboration Agreement
ECNs, brokerage firms and financial institutions to trade Korean securities, futures and options.
MidasTrade to Integrate GDAN for Direct Access Executions for Korea Stock & Futures Exchange
Headquartered in the US with a rapidly expanding Belfast, Northern Ireland development center, Wombat's distributed architecture underpins automated market-making systems, electronic-trading floors and tick-capture platforms around the world, exploiting direct-data feeds from OPRA, ECNs, NASDAQ and CTA with volumes exceeding 500 million records per day.
Wombat Names Ken Barnes, Former Reuters America Marketing Director for Direct Data Feeds and DataScope, as Vice President, Business And Planning
NEW YORK -- Electronic Specialist, LLC (ESP) announced today that TradeStream Global has completed the integration of its advanced trading application with ESP's Global Direct Market Access Network and Electronic Algorithm Routing Network (EARN(TM)), which provides buy-side institutions with access to more than 75 algorithms, crossing networks, exchanges and ECNs, on either an anonymous or fully-attributed basis, through one seamless gateway.
TradeStream Global Completes Integration with ESP's Global DMA Network and EARN(TM) Strategy Portal
Technology: communications technologies will continue to advance as will electronic trading, leading to higher volumes, lower costs and increased competition from ECNs and other variants.
Research and Markets: World Exchanges, Global Industry Outlook and Investment Analysis: 5 Key Factors Influencing Exchanges' Operations and Future Plans
Conduits are increasingly diversifying away from third-party support to leverage off the internal liquidity inherent within the asset portfolios backing conduits, particularly through the use of repos and ECNs.
Fitch: Liquidity Support a Key Rating Driver in ABCP

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