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The case describes the evolution of electronic communication networks in general, and Instinet in particular. The case deals with the functioning of Electronic Communication Networks (ECNs), the advantages of ECNs, the role of ECNs in equity markets, and the competition in the ECN market. Instinet was the first ECN and soon became a leader in the ECN market. Slowly competition increased in the market, and Instinet was considering other areas of operations to maintain its leadership position. The case also describes the strategies adopted by Instinet to deal with the growing competition in the ECN market. The case gives the students insights into: (1) the operation of electronic trading systems and ECNs in particular; (2) factors that contributed to the evolution of the ECNs, their growth and limitations; (3) the advantages of ECNs over traditional exchanges; (4) the ECN market; and (5) competition in the ECN market and the strategies adopted by Instinet to counter the competition. The case is intended for MBA/PGDBA level students as part of their knowledge, information and communication systems management curriculum.