Trades - Electronic Trading - e-Trading - Background - Systems - ECN

http://www.1mtx.com/markets-trades/en/index.php?language=en&menu=TRADES&punkt=Electronic_Trading&punkt2=Electronic%20Trading&index=e-Trading#Electronic%20Tradinge-Trading Electronic trading: trading that uses information technology to bring together buyers and sellers through electronic media to create a virtual market place. Electronic Trading : e-Trading Electronic trading: trading that uses information technology to bring together buyers and sellers through electronic media to create a virtual market place. Background Systems ECN » ...more Links ! ...| Reports | Analysis | Opinions | Comments |... ...Take a Break...Just Relax... NASDAQ, set up in 1971, was the world's first electronic stock market. It took 35 more years for the NYSE to automate its trading process: The days of exchange floor trading are coming to an end. In fact, by early 2007 organizations like the Chicago Mercantile Exchange were creating ETrading Platforms to support the emerging interest in trading within the Foreign exchange market. Latest Updates... Latest Market Datas: NASDAQ-100 CME Group Eurex Latest Updates... Historically, stock markets used to be physical locations where buyers and sellers met and negotiated. However with the improvement in communications technology, the need for a physical location no longer is of any importance as the buyers and sellers can electronically exchange indications of interests as well as negotiate from a remote location. Open outcry trading is being replaced by electronic methods Open outcry trading is being replaced by electronic methods Background Systems ECN » ...more Links ! ...| Reports | Analysis | Opinions | Comments |... ...Take a Break...Just Relax... ^ top Background There are, broadly, two types of trading in the financial markets: ? business-to-business (B2B) trading, often conducted on exchanges, where large investment banks and brokers trade directly with one another, transacting large amounts of securities, and ? business-to-client (B2C) trading, where retail (e.g. individuals buying and selling relatively small amounts of stocks and shares) and institutional clients (e.g. hedge funds, fund managers or insurance companies, trading far larger amounts of securities) buy and sell from brokers or "dealers", who act as middle-men between the clients and the B2B markets. While the majority of retail trading probably now happens over the Internet, retail trading volumes are dwarfed by institutional, inter-dealer and exchange trading. Similarly, B2C trading traditionally happened over the phone and, while much of it still does, more brokers are allowing their clients to place orders using electronic systems. Many retail (or "discount") brokers (e.g. Charles Schwab, E*Trade) went online during the late '90s and most retail stock-broking probably takes place over the web now. Larger institutional clients, however, will generally place electronic orders via proprietary ECNs such as Bloomberg or TradeWeb (which connect institutional clients to several dealers), or using their brokers' proprietary software. The increase of e-trading has had some important implications: ? Reduced cost of transactions ? Greater liquidity ? Greater competition ? Increased transparency ? Tighter spreads » more (Impact) Background Systems ECN » ...more Links ! ...| Reports | Analysis | Opinions | Comments |... ...Take a Break...Just Relax... ^ top Systems e-Trading Systems are typically proprietary software (ETrading Platforms), running on COTS hardware and operating systems, often using common underlying protocols, such as TCP/IP [Transmission Control Protocol (TCP) and the Internet Protocol (IP)] and ASCII [American Standard Code for Information Interchange]. Exchanges typically develop their own systems (sometimes referred to as matching engines), although sometimes an exchange will use another exchange's technology (e.g. e-cbot, the Chicago Board of Trade's electronic trading platform, uses LIFFE's Connect system), and some newer electronic exchanges use 3rd-party specialist software providers (e.g. the Budapest stock exchange and the Moscow Interbank Currency Exchange use automated trading software originally written and implemented by FMSC, an Australian technology company that was acquired by Computershare, and whose intellectual property rights are now owned by OMX. » more (Technology & Systems) Background Systems ECN » ...more Links ! ...| Reports | Analysis | Opinions | Comments |... ...Take a Break...Just Relax... ^ top ECN An electronic communication network (ECN) is the term used in financial circles for a type of computer system that facilitates trading of financial products outside of stock exchanges. The primary products that are traded on ECNs are stocks and currencies. ECNs came into existence in 1998 when the SEC (United States Securities and Exchange Commission) authorized their creation. ECNs increase competition among trading firms by lowering transaction costs, giving clients full access to their order books, and offering order matching outside of traditional exchange hours. In order to trade with an ECN, one must be a subscriber or have an account with a broker that provides direct access trading. ECN subscribers can enter orders into the ECN via a custom computer terminal or network protocols. The ECN will then match contra-side orders (i.e. a sell-order is "contra-side" to a buy-order with the same price and share count) for execution. The ECN will post unmatched orders on the system for other subscribers to view. Generally, the buyer and seller are anonymous, with the trade execution reports listing the ECN as the party. » more (ECNs and the stock market - ECN fee structure - ECNs and the currency market - History) » SEC: ECN (Electronic Communication Networks and After-Hours Trading - SEC.gov) Background Systems ECN » ...more Links ! ...| Reports | Analysis | Opinions | Comments |... ...Take a Break...Just Relax... ^ top » ...more Links ! » ...more Links » ECNs/Alternative Trading Systems (SEC.gov) '...Electronic Communications Networks, or ECNs, as defined in Rule 600(b)(23) of Regulation NMS, are electronic trading systems that automatically match buy and sell orders at specified prices. ECNs register with the SEC as broker-dealers and are subject to Regulation ATS. Subscribers, which are typically institutional investors, broker-dealers, and market-makers — can place trades directly with an ECN. ....' » London FX Ltd (londonfx.co.uk) '...list of bank membership of FX ECNs ...' » Crossing network (wikipedia) '...A crossing network is an electronic financial network for matching orders for execution without first routing the order to an exchange or market center (ATS, ECN, etc) where the order would be accessible for public viewing. Instead the order is flagged to other participants in the crossing network. ...' » FINRA (Finra.org) '..The Financial Industry Regulatory Authority (FINRA), is the largest non-governmental regulator for all securities firms doing business in the United States. All told, FINRA oversees nearly 5,100 brokerage firms, about 173,000 branch offices and more than 676,000 registered securities representatives. ...' TRADES GLOSSARY A - Z Terms - Definitions Background Systems ECN » ...more Links ! ...| Reports | Analysis | Opinions | Comments |... ...Take a Break...Just Relax... ^ top ...| Reports | Analysis | Opinions | Comments |... | Reports | Analysis | Opinions | Comments | 'Open Outcry to eTrading' " open outcry trading, traders stand in a trading pit and call out prices and quantities that indicate their willingness to buy or sell. They use hand signals to convey the same information since it can be difficult to hear if everyone is shouting at once. Open outcry is an efficient means of "price discovery," allowing buyers and sellers to arrive at the best prices given the supply and demand for a given futures or options on futures contract. Its speed and efficiency have been further enhanced by the introduction of a variety of trading floor technologies. ..." Read more » (CME.com) 'Single trader behind oil record' "The man behind the record rise in oil prices to $100 a barrel was a lone trader, seeking bragging rights and a minute of fame, market watchers say. ...Most trading in energy futures has shifted away from the trading floor and takes place on electronic platforms. The NYMEX, along with the Chicago Mercantile Exchange is one of the last bastions of "open outcry", where traders use frantic hand signals to trade securities. In London, open outcry trading still takes place on the London Metal Exchange, where aluminium, copper and zinc are traded. The supporters of electronic trading claim that it is faster, cheaper, more efficient for users, and less prone to manipulation by market makers. ..." Read more » (BBC.co.uk - 3 January 2008) Background Systems ECN » ...more Links ! ...| Reports | Analysis | Opinions | Comments |... ...Take a Break...Just Relax... ^ top Traders work on the floor at the New York Stock Exchange. Traders work on the floor at the NYSE Take a break... ...Take a Break...Just Relax... Get Global E-trading ...just relax... Trade panels at the NYSE Trade Panels at the NYSE ADVERTISEMENT Background Systems ECN » ...more Links ! ...| Reports | Analysis | Opinions | Comments |... ...Take a Break...Just Relax... ^ top Sources: Wikipedia; BBC.co.uk; CME.com; SEC.gov; .1MTX 2008