Electronic communication network

ECNECNselectronic networksElectronic communication network (ECN)electronic communications networkelectronic tradingreal-time financial news
An electronic communication network (ECN) is a type of computerized forum or network that facilitates the trading of financial products outside traditional stock exchanges.wikipedia
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Stock exchange

stock exchangesexchangebourse
An electronic communication network (ECN) is a type of computerized forum or network that facilitates the trading of financial products outside traditional stock exchanges.
Usually, there is a central location at least for record keeping, but trade is increasingly less linked to a physical place, as modern markets use electronic networks, which give them advantages of increased speed and reduced cost of transactions.

Direct-access trading

direct access tradingdirect-access brokers
To trade with an ECN, one must be a subscriber or have an account with a broker that provides direct access trading.
Direct-access trading systems use front-end trading software and high-speed computer links to stock exchanges such as NASDAQ, NYSE and the various electronic communication networks.

Instinet

The first ECN, Instinet, was created in 1969. At that time major ECNs that became active were Instinet and Island (part of Instinet was spun off, merged with Island into Inet, and acquired by NASDAQ), Archipelago Exchange (which was acquired by the NYSE) and Brut (now acquired by NASDAQ).
Instinet was the dominant electronic communication network.

Stock

equitiesequityshares
The primary products that are traded on ECNs are stocks and currencies.
In the United States, through the intermarket trading system, stocks listed on one exchange can often also be traded on other participating exchanges, including electronic communication networks (ECNs), such as Archipelago or Instinet.

Matchbook FX

The first ECN for internet currency trading was New-York based Matchbook FX formed in 1999.
Matchbook FX was an internet-based electronic communication network ("ECN" or Electronic Trading Network) for trading currency online in the Spot-FX or Foreign exchange market.

Alternative trading system

ATS
ECNs are sometimes also referred to as alternative trading systems or alternative trading networks.
ATSs are generally electronic but don't have to be. ATSs can be distinguished from electronic communication networks (ECNs), which are a "fully electronic subset of ATSs that automatically and anonymously match orders".

Order matching system

order matchingmatching enginetrade matching
ECNs increase competition among trading firms by lowering transaction costs, giving clients full access to their order books, and offering order matching outside traditional exchange hours.
Electronic communication network

Crossing network

anonymous electronic trade matching system
As an ATS, ECNs exclude broker-dealers' internal crossing networks – i.e., systems that match orders in private using prices from a public exchange.
A crossing network is an alternative trading system (ATS) that matches buy and sell orders electronically for execution without first routing the order to an exchange or other displayed market, such as an electronic communication network (ECN), which displays a public quote.

Island ECN

Island ECN
Island ECN was one of the first electronic communication networks established for the trading equities in the United States.

Inet

Genium InetGenium trading platform
At that time major ECNs that became active were Instinet and Island (part of Instinet was spun off, merged with Island into Inet, and acquired by NASDAQ), Archipelago Exchange (which was acquired by the NYSE) and Brut (now acquired by NASDAQ).
Inet, like other electronic communication networks, was an order-pairing system that give brokerage firms the power to electronically track and match reciprocal buy and sell orders at the same limit price and lot size.

Nasdaq Market Makers Antitrust Litigation

antitrust lawsuit
These results led to an antitrust lawsuit being filed against NASDAQ.
Electronic communication network

Extended-hours trading

after-hours tradingextended hoursextended hours trading
Extended hours trading
The emergence of private trading systems, known as electronic communication networks (ECNs), has allowed individual investors to participate in after-hours trading.

Currency

currenciesforeign currencycoinage
The primary products that are traded on ECNs are stocks and currencies.

Order (exchange)

limit orderorderorders
ECN subscribers can enter orders into the ECN via a custom computer terminal or network protocols.

Auction

auctioneerauction houseauctions
The most common paradigm is the electronic auction type.

Electronic business

e-businesseBusinessonline business
As of 2005, most e-business negotiation systems can only support price negotiations.

Combinatorial auction

combinatorial clock roundscombinatorial double auctions
Multiattributive and combinatorial auction mechanisms are emerging to allow further types of negotiation.

Critical success factor

critical success factorsstrategic factorswinning strategy
Support for complex multi-attribute negotiations is a critical success factor for the next generation of electronic markets and, more generally, for all types of electronic exchanges.

Information technology

ITinformation technologiesIT services
Information technology has some potential to facilitate negotiation processes which is analyzed in research projects/prototypes such as INSPIRE, Negoisst or WebNS.

Infrastructure for Spatial Information in the European Community

INSPIRE INSPIRE GeoportalInfrastructure for Spatial Information in Europe (INSPIRE)
Information technology has some potential to facilitate negotiation processes which is analyzed in research projects/prototypes such as INSPIRE, Negoisst or WebNS.

Autonomous agent

autonomousautonomous actors or agentsautonomous agency
One research area that has paid particular attention to modeling automated negotiations is that of autonomous agents.

NASDAQ

NASDAQ Stock MarketNASDAQ Global Select MarketNASDAQ Stock Exchange
At that time major ECNs that became active were Instinet and Island (part of Instinet was spun off, merged with Island into Inet, and acquired by NASDAQ), Archipelago Exchange (which was acquired by the NYSE) and Brut (now acquired by NASDAQ). This structure is common on the NASDAQ market.

Transparency (behavior)

transparencytransparentgovernment transparency
By trading through an ECN, a currency trader generally benefits from greater price transparency, faster processing, increased liquidity and more availability in the marketplace.

Market liquidity

liquidityliquidilliquid
By trading through an ECN, a currency trader generally benefits from greater price transparency, faster processing, increased liquidity and more availability in the marketplace.

Bank

bankerbankingbanking system
Banks also reduce their costs as there is less manual effort involved in using an ECN for trading.