ELECTRONIC COMMUNICATIONS NETWORKS (ECNs) as they be popularly cognize be well-established affair platforms in the unite States (USA). A New York era article reports that electronic affair is one in quartet transactions made by individual investors in USA. The clothed of ECNs is to cut out intermediaries among buyers and sellers in stock transactions. Today, ECNs enroll for approximately 30% of tally share volume and 40% of the horse volume traded in Nasdaq securities. ECNs account for approximately 3% of total share and dollar volume in listed securities.4 In contrast, in 1993, ECNs accounted for only 13% of share volume in Nasdaq securities and only 1.4% of listed share volume. (SEC Report, 2005, op. cit. 1.) Instinet, a Reuter subsidiary and a internet established in 1969 to grant mutual funds and divide institutional investors to post orders anonymously at prices inside the wide spreads remains the biggest ECN. It trades in more than than 40 stock marketplaces including the NYSE. most(prenominal) ECNs similar Instinet are for institutional customers only. However, The Island and Archipelago, own by Datek Holdings, an online profession self-colored accept trades from small investors. The Archipelago outline allows an order to give-up the ghost the internet once it is determined that null is willing to tax repay the opposite position and doctor posted onto the NASDAQ marketplace. The one tightness that hinders efficient performance of ECNs is volume.
wedded volatility of NASDAQ scrips it is important that an ECN pronto match orders lest the market melt away from the requested price. The construe technology revolution has provided investors with unused execution choices. Of special ordered argument are the juvenile growth of alternative employment systems known as electronic Communications Networks (ECNs) and the increased opportunities for trading in the after-hours market (SEC report, 2005, op. cit. 1.). ECNs emerged following a qualify in... If you ask to get a full essay, order it on our website: Ordercustompaper.com
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