Electronic Communication Networks (ECNs)

Electronic Communication Networks (ECNs) are automated systems that match buy and sell orders for financial securities in real time. They enable direct trading between investors, bypassing traditional stock exchanges. By facilitating faster transactions and often lower fees, ECNs enhance market efficiency and liquidity. Investors can access ECNs through brokers, allowing them to trade a wide range of financial instruments, including stocks and currencies, during extended hours beyond regular market sessions. Overall, ECNs contribute to a more dynamic trading environment, offering greater transparency and efficiency in the financial markets.