What is the term for an electronic trading system that matches buy and sell orders at specific prices?

The term for an electronic trading system that matches buy and sell orders at specific prices is known as an ECN, or Electronic Communication Network. ECNs facilitate trading by allowing market participants to trade directly with one another, without the need for intermediaries. They are particularly useful for providing transparency and liquidity in the market, as they aggregate orders from multiple sources and display them to all participants.

ECNs operate on a principle where buy orders are matched with sell orders at the same price, enabling trades to occur efficiently. This system often attracts various types of traders, including retail and institutional investors, due to its ability to execute trades quickly and at competitive prices.

In contrast, other options describe different aspects of trading or financial services. For instance, a brokerage system typically involves brokers who serve as intermediaries between buyers and sellers. Market makers are firms that provide liquidity to the market by being ready to buy and sell at specified prices, but they do not necessarily match orders directly like an ECN. A trading platform is a software application used by traders to place orders and analyze the market, but it does not specifically refer to the matching of buy and sell orders like an ECN does.

Thus, the unique functionality of the ECN in matching orders at specific