Electronic Communication Network
Yellow implements a mesh and decentralized ECN.
An electronic communication network (ECN) is a computerized system that automatically matches buy and sell orders for securities in the market. ECN trading is especially helpful when investors in different geographic areas wish to complete a secure transaction without the use of a third party.
The ECN aggregates books of brokers and market makers in different locations. This leads to deeper liquidity and larger orderbooks and thus a tighter bid-ask spread and faster order execution. Traders can get more attractive spreads and better order flow.
An additional benefit of The ECN's order aggregation is better price transparency for all participating brokers and market makers.
Using an ECN counters market fragmentation issue, while maintaining the decentralization aspect of the crypto trading market.
[INSERT: ECN Deal Flow Graphic (in preparation)]
ECN facilitates access to brokers to global financial markets; Yellow Network protocol forms a decentralized ECN for digital assets.
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