Electronic Communication Network (ECN)

An Electronic Communication Network (ECN) is a system that matches buy and sell orders for securities, such as stocks, directly between investors without needing a traditional stock exchange. This technology allows for faster and more efficient trading by automatically connecting traders and executing orders electronically. ECNs help increase market transparency and can enable smaller investors to access the market more easily, often with lower fees. They play a vital role in modern finance by facilitating trading and enhancing liquidity in financial markets.