What are Electronic Communication Networks or ECNs?

Brooke Christa 12 Apr, 2022Business

An Electronic Communication Network (ECN):- is a type of computerized forum or network that facilitates the trading of financial products outside of traditional stock exchanges. As a rule, an electronic system that widely distributes orders entered by market makers to third parties and allows full or partial fulfillment of orders. The major products that are traded on ECN are stocks and currencies. ECNs are typically passive computer networks that internally correspond to limit orders and charge a minimal transaction fee per share (often a fraction of a cent per share).