The traditional and established platforms of exchange traded and over the counter or OTC markets have long facilitated the flow of trade and capital across the world.

Yet the evolution of technology has brought in a transformative player. ECNs or electronic communication networks. ECNs have been gaining prominence over the last couple of decades. They represent an innovative fusion in the financial trading sphere, marrying the transparency and order of exchange trading with the direct decentralized nature of OTC markets, much like an exchange ECNs bring to the table a level of transparency that was typically reserved for traditional exchanges, as many of them labor their Order books.

This allows all market participants to witness buy and sell orders as they are automatically matched, prioritized by price and time, a feature that resembles the open and orderly market of exchange trading. At the same time, ECNs also embody the spirit of OTC markets through their facilitation of direct trading between parties without the involvement of a centralized exchange. This characteristic echoes the OTC market's capacity for direct counterparty transactions, and the bespoke trading arrangements that have long been its hallmark. In summary, an ECN is neither a conventional exchange nor a straightforward OTC market. It's a hybrid, an electronic trading network that provides a platform for direct trading between parties, harnessing technological advancements to enhance transparency and efficiency.