Series 24: Electronic Communications Networks (ECNs)

Electronic Communications Networks (ECNs)

Electronic Communications Networks (ECNs) are automated trading systems registered with the SEC as broker-dealers that display and execute orders electronically for their private subscribers. ECNs post buy orders against sell orders and automatically complete transactions when they find matches. Subscribers to an ECN may include institutional investors, broker-dealers, and market makers. Individuals that wish to trade through an ECN must have an account with a broker-dealer.

If an ECN cannot match the orders internally, it submits them to another market center. When connected to Nasdaq, those order