Electronic communications networks (ECNs)
A)have open access to the NYSE but no access to NASDAQ.
B)totally replaced face-to-face trading on the NYSE in 2015.
C)are available only to financial institutional traders.
D)act to increase liquidity in the financial markets.
E)are used solely by market makers to place bid and ask quotes.

Question

Quizplus · Accepted Answer

Electronic communications networks (ECNs) act to increase liquidity in the financial markets by allowing buyers and sellers to directly trade with each other without the need for an intermediary. This increases the number of participants in the market and the liquidity of the market overall. ECNs are used by a variety of participants, including financial institutions and retail traders. They have access to both the NYSE and NASDAQ. However, they are not used solely by market makers to place bid and ask quotes.

Electronic Communications Networks (ECNs)