Archipelago

DEFINITION of 'Archipelago'

An electronic communications network (ECN) that merged with the New York Stock Exchange (NYSE) in 2006 to form the NYSE Arca exchange. Archipelago, created in 1996, was one of the first ECNs and a precursor to the Archipelago Exchange (ArcaEx) that was created in 2001 to facilitate electronic stock trading for the major U.S. stock exchanges.

BREAKING DOWN 'Archipelago'

Shortly after the merger with Archipelago, the NYSE became a publicly traded company with both new electronic and traditional floor-trading capabilities. The electronic NYSE Arca exchange allows stock and options trading and offers one of the largest ECNs in the world. ECNs allow for automated trading, passive order matching, after-hours trading and super-fast order execution.

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