What is ECN, every trader knows. The abbreviation stands for Electronic Communication Network. In fact, this is an extensive ledger, only with regard to exchange (and not only) orders and other information on dealing.
Indisputable advantages ECN
ECN works through direct access. Each individual application is easily and adequately tracked by the client, the client can monitor the effectiveness of his orders, speaking on behalf of the broker is not mandatory. ECN reduces the role of mediation to zero, this is current globalization, which only facilitates the work. In sum, electronic systems are full of advantages:
- bidding is now round the clock;
- a lot of participants with their quotations;
- easy tracking of the “price glass”;
- if desired, all participants of the site have full information;
- openness and transparency for all participants.
The security of transactions through ECN-systems is based on:
- classified data entry;
- enhanced user verification,
- the advanced system of separation of powers and access;
- powerful data encryption tools.
Some ECN-systems and their description
Currenex is a pioneer of open ECN-platform with established in 1999. Sites – London, Singapore, New York, Chicago, was basically founded in California. The resource works on spots, swaps, forwards. Trade in Currenex only on registration. The character of the base is determined by the fact that a lot of world TNCs and the wide number of banks of world stock exchanges are market makers there. Currenex works exclusively on analytics and provides the safe conduct of writing-off of funds from accounts.
Atriax is an example of a magnificent independent British electronic system. It lasted only a year. Usual users as market-makers were not allowed, which became a strategic mistake for a long time. Information support was provided by the legendary Reuters agency, its analyst was reinforced by the findings of member banks. The pool of traded currency was limited to 43 denominations. They worked on spots, forwards and swaps, they wanted to introduce options. Atriax divided bidders into price-makers and price-makers, from the first took contributions.
Liquidity providers and brokers uniting system (LPBUS) from the company Varalen is a fundamentally new word in the field of electronic technologies. Its use is strikingly different from previous analogues with the latest software systems. Its democracy and relevance is the best incentive to bookmark the site and register.