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The emergence of trading via ECNs has:

A. lowered the cost of trading.
B. provided a unique advantage not offered by the NYSE.
C. made trading more difficult for insider traders.
D. all of these options are true.

1 Answer

3 votes

Final answer:

The emergence of trading via ECNs has lowered the cost of trading, provided a unique advantage with after-hours trading, and made it more difficult for insider trading. All of these options are indeed true.

Step-by-step explanation:

The emergence of trading via ECNs (Electronic Communication Networks) has had several impacts on the financial markets:

  • A. Lowered the cost of trading: ECNs automate transactions and match buy and sell orders, which reduces the need for intermediaries and can lead to lower transaction costs.
  • B. Provided a unique advantage: Unlike traditional exchanges such as the NYSE, ECNs offer after-hours trading, which can be an advantage for investors looking to trade outside of standard market hours.
  • C. Made trading more difficult for insider traders: The increased transparency and real-time information provided by ECNs can make it harder for insider traders to exploit non-public information.

Overall, all of these options are true and reflect the benefits and changes that ECNs have brought to trading.

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