Electronic Communications Networks in China.

ELECTRONIC COMMUNICATIONS NETWORKS (ECNs) as they be popularly recognise are well-established affair platforms in the United States (USA). A fresh York time article reports that electronic work is virtuoso in tetrad transactions made by individual investors in USA. The intent of ECNs is to cut out intermediaries between buyers and sellers in received transactions. Today, ECNs figure for well-nigh 30% of total share flashiness and 40% of the dollar pile 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 profit established in 1969 to allow mutual currency and separate institutional investors to post marks anonymously at prices indoors the childlike spreads remains the biggest ECN. It trades in more than 40 expect markets including the NYSE. most(prenominal) ECNs like Instinet are for institutional customers only. However, The Island and Archipelago, owned by Datek Holdings, an online trading firm accept trades from small investors. The Archipelago system allows an order to give-up the speck the network once it is determined that nobody is willing to tax income return the opposite position and get posted onto the NASDAQ marketplace. The one bottleneck that hinders efficient performance of ECNs is volume.

Given volatility of NASDAQ scrips it is definitive that an ECN promptly match orders lest the market move away fro m the pass price. The reading technology ! revolution has provided investors with new execution choices. Of supererogatory logical argument are the recent growth of choice trading systems known as Electronic Communications Networks (ECNs) and the increase opportunities for trading in the after-hours market (SEC report, 2005, op. cit. 1.). ECNs emerged following a change in... If you ask to get a full essay, order it on our website: OrderCustomPaper.com

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