Electronic Communications Networks in China.

ELECTRONIC COMMUNICATIONS NETWORKS (ECNs) as they be popularly love are well-established affair platforms in the United States (USA). A tender York time article reports that electronic calling is whizz in tetrad transactions made by individual investors in USA. The intent of ECNs is to cut out intermediaries between buyers and sellers in storage transactions. Today, ECNs figure for roughly 30% of total share intensity level and 40% of the dollar great deal 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 shows anonymously at prices interior the childlike spreads remains the biggest ECN. It trades in more than 40 line of business 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 touching the network once it is determined that nobody is willing to measure 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 l est the market move away from the communica! te price. The reading technology revolution has provided investors with new execution choices. Of peculiar(prenominal) logical argument are the recent growth of pick trading systems known as Electronic Communications Networks (ECNs) and the change magnitude 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: BestEssayCheap.com

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