ECN vs STP Execution Models: Transparency Comparison
Summary
A comparative analysis of execution transparency between ECN and STP broker models, examining disclosure practices around order routing and price formation.
Key Findings
ECN brokers generally provide greater execution transparency through published order book data and more detailed fill statistics. STP brokers show variable disclosure levels. The distinction between genuine ECN/STP and marketing claims presents a transparency challenge.
Industry Implications
The findings inform IPTI's execution transparency signal criteria and highlight the need for standardised execution model disclosure requirements.
Note Details
- Research Unit
- RU002
- Publication Date
- 2026-02-01
Legal Disclaimer
The IFCCI Transparency Programme is an independent research initiative and does not constitute regulatory supervision, professional financial advice, or official compliance certification. All findings represent research-based observations intended to contribute to financial industry transparency discourse and informed evaluation. FinScope is a technology platform developed to support the programme’s public-facing digital interface.