Brokers to lose out as ECNs eat into commissions

Electronic communications networks (ECNs) are threatening to replace the execution services of prime brokers, cutting the commission they receive by as much as $240,000 a year from hedge funds.

The networks, or ECNs, are computer systems, which aim to treat all exchanges as one vast market of trading opportunities. Originally developed as an extension of Nasdaq, the three principal ECNs ' Island, Instinet and Archipelago ' now connect to most major exchanges and continue to gain market share

To continue reading...

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: