What is electronic communication network trading system (ECN)?

Electronic communication network trading systems connect sellers and buyers to execute trades electronically. An ECN is an electronic system that largely caters to the orders of third parties made by an exchange market maker or over-the-counter market maker and permits the execution of such orders wholly or partly as per requirement.

What is an electronic communication network (ECN)?

An electronic communication network (ECN) is a computerized system that automatically matches buy and sell orders for securities in the market. ECN trading is especially helpful when investors in different geographic areas wish to complete a secure transaction without the use of a third party.

Are electronic communications networks redefining equity markets?

Electronic communications networks are redefining the U.S. equity markets. While established market centers are seeking to maintain their edge chiefly by investing in new technology and trading systems, ECNs appear confident that they have the automated capabilities to be major players in the new electronic environment.