Electronic Communication Networks (ECN)

Electronic Communication Networks (ECNs) are computerized systems that facilitate direct trading of financial securities like stocks between investors and institutions without traditional stock exchanges. They automatically match buy and sell orders in real-time, often providing faster and more efficient execution at potentially better prices. ECNs operate 24/7, allowing for continuous trading and greater market transparency. They are commonly used by traders seeking to execute large orders discreetly or to access markets outside regular hours. Overall, ECNs enhance the efficiency, speed, and transparency of financial trading in today's digital landscape.