An electronic communication network (ECN) is a financial term for a type of computer system that facilitates trading of financial products outside of stock exchanges. The primary products that are traded on ECNs are stocks and currencies. The first ECN, Instinet, was created in 1969. ECNs increase competition among trading firms by lowering transaction costs, giving clients full access to their order books, and offering order matching outside of traditional exchange hours. ECNs are sometimes also referred to as Alternative Trading Systems or Alternative Trading Networks.
Read more about Electronic Communication Network: Function, In The Stock Market, Fee Structure, Currency Trading, History
Famous quotes containing the words electronic and/or network:
“The new electronic interdependence recreates the world in the image of a global village.”
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—George Eliot [Mary Ann (or Marian)