Big Board

Finance a la shmoop what is the electronic communication network or ECN?

all right it's the computerized and wired version of this for a small fee [Large computer network]

traders can plug in to a network to trade stocks you know think about it

like Facebook for stock traders only with less political ranting and fewer

photographs of babies and freshly cooked meat generally well generally speaking [A pan of meat and potato's appear]

ECNs are "off-market" that is they aren't really directly part of

an established trading system like the New York Stock Exchange or Nasdaq or one

of the other blessed exchanges they connect market makers directly to third

parties allowing them to trade to their heart's content there aren't a lot of

actual physical hands at work here most of the limit orders are matched

electronically the network charges its fee the transaction is processed and [Company share price appears]

life moves on so think about it like it's 2:00 a.m. on a Saturday and Joe who

likes to trade in his underwear don't ask us why it's just dying to sell a [Joe sits down at PC]

hundred shares of coke to Betty who likes to trade while head-banging to Led

Zep and you know likes to trade with Achmed who's saving money for an air

conditioner yeah well no sweat so this is perfect for anyone who wants to

become active in the trading of stocks but hates any kind of physical human [Man waving to woman and woman walks by]

interaction yeah don't worry the robot rebellion will soon be upon us and ECNs

will rule the roost