Electronic Communication Network
An Electronic Communication Network (ECN ) is an electronic trading system of a third-party that is connected to the electronic system of the NASDAQ or the other stock exchange.
Can not run the security order in each ECN, it is forwarded to the example on NASDAQ. The first German ECN was Tradegate, the electronic trading system of Berlin-based Tradegate AG, securities trading bank in the year 2001; Tradegate Exchange has become a stock exchange.
The terms were set in January 1997 by the U.S. Securities Exchange Commission (SEC):
- The continuous dissemination of price information.
- Limit -book management or continuous auctions.
- The ( auto) merging of customer orders and their execution.
Darüberhinau must the operator of the ECN promise to pass on the best available to it, the market-maker orders to the Nasdaq system.