ModelIntermediate
Electronic Communication Network (ECN)
syn. ECN
An automated system that matches buy and sell orders from multiple participants, allowing direct trading without a dealing desk or market maker.
Last updated: February 10, 2026
1
Multiple participants (banks, brokers, funds, retail aggregators) connect to the ECN.
2
Each participant posts limit orders that form a shared order book.
3
The ECN matching engine pairs buy and sell orders using price/time priority.
4
Matched orders are executed instantly and reported to both counterparties.
5
The ECN earns revenue from per-trade commissions, not from taking market positions.