Which of the Following Is NOT True About an Electronic

question 5

Multiple Choice

Which of the following is NOT true about an electronic communications network (ECN) ?

• A) It is an alternate trading system that must be registered with the SEC as a broker-dealer.
• B) Its participants include institutional investors,broker-dealers,and market makers.
• C) It publicly displays the limit order book to subscribers.
• D) It is primarily a trading venue for stocks and currencies.
• E) It is a secretive trading network that does not send an order directly to an exchange or display it in a limit order book.

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Definitions:

Liable

Legally responsible for one’s actions or an outcome, often involving a duty to compensate for harm or damage.

Duty

A moral or legal obligation; the responsibility to fulfill tasks, obligations, or roles as required by the law or social norms.

Conduct

Behavior or actions of an individual or organization, especially in relation to legal, ethical, or professional standards.

Common Law

A body of unwritten laws based on legal precedents established by the courts.