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  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: UPDATE cache_filter SET data = '<h2>What is an ECN?</h2><br />An <strong>electronic communication network</strong>, or <strong>ECN</strong>, is an order&nbsp;matching platform which connects investors directly to brokerage houses, rather than processing trades through a middle man.&nbsp;By providing direct access to the ECN, brokerage houses are able to bring down costs and consquently offer lower commission schedules to their clients.&nbsp; <br /><br />ECN\'s will have an order book for each security and will display all buy and sell orders in real time which were placed&nbsp;by individual traders, broker/dealer, institutional investors, and even market makers.&nbsp; Individual traders must subscribe to an ECN through their online broker before they are able to transact on them.&nbsp; Orders wi<br /><br /><h2>ECN Variations</h2><br />There are a few different ECNs that exist out there:<br /><h3>Instinet</h3>Instinet is the oldest ECN out there, being established in 1969 to provide a block crossing capability for institutional investors.&nbsp; Basically, it created a facility to allow large institutional block orders to be transacted directly between institutions without&nbsp;<a href=\"/stocks/market-maker.html\">market maker</a> or specialist intervention.&nbsp; Today, Instinet has been expanded to trade many of the stocks listed on the <a href=\"/world-markets/nasdaq-composite.html\">Nasdaq Composite</a> and many of the other major exchanges.&nbsp; Instinet has also been cited as a pioneer for <a href=\"/stocks/after-hours-trading.html\">after hours trading</a>.<br /><h3>Small Order Execution System (SOES)</h3>SOES was established to resolve inefficiencies that would result in a panic type of market event where orders were coming in with enormous volume.&nbsp;&nbsp;SOES was set up to&nbsp;provide liquidity and automate order execution on transactions of less than 1000 shares.&nbsp; To trade on the SOES, a list of rules apply.&nbsp; Firstly, a trader cannot perform a transaction of more than 1000 shares at a time and if they choose to trade that stock again, they&nbsp;must wait 5 minutes.&nbsp; Secondly, no stocks over $250 are allowed to trade&nbsp;through this network.&nbsp; At the end of the day, SOES gives individual investors the ability to achieve the same executions that larger institutions are receiving.<br /><br /><h3>NYSE Arca</h3>NYSE Arca, also known as ArcaEx or Archipelago, is an ECN which&nbsp;trades stocks listed in NYSE, <a href=\"/world-markets/american-stock-exchange.html\">AMEX</a>&nbsp;&amp; Nasdaq.&nbsp; In addition to offering trading on equities, Arca Ex trades <a href=\"/options\">options</a> on indices,&nbsp;<a href=\"/stocks/etfs.html\">ETF</a>s, equities &amp;&nbsp;foreign exchange currency pairs.&nbsp; ArcaEx accounts for nearly 10% of&nbsp;NYSE&nbsp;volume&nbsp;and nearly 20% of volume at the Nasdaq.', created = 1566591300, expire = 1566677700, headers = '', serialized = 0 WHERE cid = '1:b432a11c89a08a11581addb4de5960c9' in /var/www/html/mysmp/includes/cache.inc on line 109.
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  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: UPDATE cache_filter SET data = '<p>Tim Ord is a technical analyst and expert in the theories of chart analysis using price, volume, and a host of proprietary indicators as a guide to navigating through the markets.</p><p>Tim is in the Timers Digest Top 10 Rankings for his newsletter and is the Author of \"The Secret Science of Price and Volume”. Ord also contributes to the Stocks &amp; Commodities Magazine.</p>', created = 1566591300, expire = 1566677700, headers = '', serialized = 0 WHERE cid = '1:2fda152348bc4ae73408bf0b82608e9a' in /var/www/html/mysmp/includes/cache.inc on line 109.
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Electronic Communication Network - ECN

What is an ECN?


An electronic communication network, or ECN, is an order matching platform which connects investors directly to brokerage houses, rather than processing trades through a middle man. By providing direct access to the ECN, brokerage houses are able to bring down costs and consquently offer lower commission schedules to their clients. 

ECN's will have an order book for each security and will display all buy and sell orders in real time which were placed by individual traders, broker/dealer, institutional investors, and even market makers.  Individual traders must subscribe to an ECN through their online broker before they are able to transact on them.  Orders wi

ECN Variations


There are a few different ECNs that exist out there:

Instinet

Instinet is the oldest ECN out there, being established in 1969 to provide a block crossing capability for institutional investors.  Basically, it created a facility to allow large institutional block orders to be transacted directly between institutions without market maker or specialist intervention.  Today, Instinet has been expanded to trade many of the stocks listed on the Nasdaq Composite and many of the other major exchanges.  Instinet has also been cited as a pioneer for after hours trading.

Small Order Execution System (SOES)

SOES was established to resolve inefficiencies that would result in a panic type of market event where orders were coming in with enormous volume.  SOES was set up to provide liquidity and automate order execution on transactions of less than 1000 shares.  To trade on the SOES, a list of rules apply.  Firstly, a trader cannot perform a transaction of more than 1000 shares at a time and if they choose to trade that stock again, they must wait 5 minutes.  Secondly, no stocks over $250 are allowed to trade through this network.  At the end of the day, SOES gives individual investors the ability to achieve the same executions that larger institutions are receiving.

NYSE Arca

NYSE Arca, also known as ArcaEx or Archipelago, is an ECN which trades stocks listed in NYSE, AMEX & Nasdaq.  In addition to offering trading on equities, Arca Ex trades options on indices, ETFs, equities & foreign exchange currency pairs.  ArcaEx accounts for nearly 10% of NYSE volume and nearly 20% of volume at the Nasdaq.
Tim Ord
Ord Oracle

Tim Ord is a technical analyst and expert in the theories of chart analysis using price, volume, and a host of proprietary indicators as a guide...

Tradingsim.com
Day Trading Simulator

Tradingsim.com provides the ability to simulate day trading 24 hours a day from anywhere in the world. TradingSim provides tick by tick data for...

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