E-Commerce

Definition of Electronic Communication Network:-

An electronic communication network (ECN) is the label used in monetary circles pro a type of notebook method to facilitate facilitates trading of monetary products outside of run of the mill exchanges. The primary products to facilitate are traded on ECNs are stocks and currencies. ECNs came into existence in 1998 after the jiffy authorized their creation. ECNs boost competition amid trading firms by lowering transaction outlay, giving clients chubby access to their order books, and offering order matching outside of traditional argument hours. ECN's are occasionally furthermore referred to as Alternative Trading Networks


ENC functioning:-

To trade with an ECN, single ought to be a subscriber or retain an balance with a dealer with the aim of provides sincere access trading. ECN subscribers can enter information into the ECN via a custom PC terminal or system protocols. The ECN will so therefore match contra-side information (i.E. A sell-order is "contra-side" to a buy-order with the same cost and share count) pro execution. The ECN will stake unparalleled information on the organization pro other subscribers to consider. Generally, the buyer and seller are unsigned, with the trade execution reports citation the ECN as the gathering.

Some ECNs can offer other skin texture to subscribers such as negotiation, reserve size, and pegging, and can retain access to the whole ECN paperback (as conflicting to the "top of the book") with the aim of contains vital real-time marketplace data regarding depth of trading importance.