Electronic Communication Network - ECN

What Does Electronic Communication Network - ECN Mean?
An electronic system that attempts to eliminate the role of a third party in the execution of orders entered by an exchange market maker or an over-the-counter market maker, and permits such orders to be entirely or partly executed.

Investopedia explains Electronic Communication Network - ECN
An ECN connects major brokerages and individual traders so that they can trade directly between themselves without having to go through a middleman.

Related Terms

Alternative Trading System - ATS
Hybrid Market
Market Maker
Order Audit Trail System - OATS
Over the Counter - OTC
Prop Shop
SelectNet
Small Order Execution System - SOES
Trading Session
Xetra
More Related Terms

Related Links

Electronic Trading: Electronic Communications Networks (ECNs) - We''ll give you an overview of the most popular electronic communication networks (ECNs).
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