A high-volume trading platform owned by Direct Edge ECN LLC, the third largest market center worldwide. EDGX is a type of electronic communication network (ECN) that allows traders to trade with one another directly on an exchange instead of having to go through a middleman. NYSE Arca, Nasdaq, and BATS are examples of other high-volume ECNs. In 2009, EDGX traded more than 2 billion shares of U.S. cash equity per day.


EDGX charges liquidity takers and rebates liquidity providers. As of 2009, EDGX provides a 0.0025 credit for adding liquidity. The charge for removing liquidity is 0.0028. This structure is appealing to limit traders. Direct Edge also has another ECN platform, EDGA, which does not charge to provide or take liquidity. These costs are important to the bottom line for active traders.

In mid-2009, Direct Edge applied to the SEC to convert the EDGX and EDGA platforms into stock exchanges.

  1. Liquidity

    The degree to which an asset or security can be quickly bought ...
  2. Electronic Communication Network ...

    An electronic system that attempts to eliminate the role of a ...
  3. Nasdaq

    A global electronic marketplace for buying and selling securities, ...
  4. NYSE Arca

    A securities exchange in the U.S. on which stocks and options ...
  5. Exchange

    A marketplace in which securities, commodities, derivatives and ...
  6. Trading Account

    1. An account similar to a traditional bank account, holding ...
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