Alternative Trading System

  

ATS is like a corner cafe eBay for stocks and bonds. It's another way to buy and sell shares without going through NASDAQ. It’s sort of the off-Wall Street, off-grid, off-Broadway version of NASDAQ. Examples include crossing networks and ECNs (Electronic Communication Networks).

Related or Semi-related Video

Finance: What is Electronic Communicatio...12 Views

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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will rule the roost

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