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Nasdaq has responded by raising revenues through various other charges, notably one for regulatory services based on the number of quotes a market-maker or ECN generates.
And there are plenty of suspicions that ultimately the SEC is not willing to jeopardise the NYSE's and the Nasdaq's position; it is keen to keep out foreign competitors' trading screens, for example, and has not yet licensed any ECN to operate as a full exchange.The most important players in the game are not, however, the regulators, the investing institutions, the exchanges or even the ECNs.
Indeed, in a reference to his upstart new rivals, he calls his own exchange the biggest "electronic communications network" (ECN) in the world.
The Amex, which is in New York, has been struggling for years to compete with bigger rivals like the New York Stock Exchange and more recently with electronic trading networks like Island ECN.
The impact of the current version of SuperMontage, watered down by ECN lobbying, is harder to predict, not least because ECNs are no longer obliged to participate in it.A report by Celent, a research firm, argues that, because liquidity begets more liquidity, SuperMontage will win a market share of over 50% by the end of 2003.
ECN, which is no longer retained by the FA, insists that at no point in negotiations was the 2018 bid mentioned explicitly.
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Now, in America, the growth of electronic communications networks (ECNs) has seen broker-dealers turn into exchanges, and two have applied to be regulated as such.For investment banks, and retail banks in their wholesale businesses, the Internet adds another twist to this already tangled skein.
Yet few ECNs have justified the initial enthusiasm for them by attracting much trading volume.
Both exchanges now want to become public companies after which they would provide more effective competition to the ECNs.
ECNs have won business from the Nasdaq by offering just such an electronic order-driven system.
Some big financial institutions are investing in rivals, such as online trading systems, collectively known as electronic communication networks (ECNs).
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