"We chose AXE because it not only says what we do, it says who we are," said AXE ECN CEO Greg Yanco.

"It's a market term coined in the U.S. to describe the 'lead dog' analyst in a given stock. It's a professional term that summarises AXE ECN's ambitions in the Australian capital market - to be the platform professional customers look to, much as brokers and institutions look to the 'axe' on the research side," said Yanco.

The origin of the term 'becoming the axe in the stock' is attributed to U.S. investment banker Tubby Burnham, well known for his ability to 'feel the market'. The view of an analyst who is the 'axe' in a stock tends to dictate the buying and selling behaviour of others, and many other analysts spend time trying to predict what the axe will do.

"It's a punchy term that sums up the determination and belief of the AXE partners to make a difference in the Australian market with a strong, client-driven business model," said Dan Ritchie, Head of Australian Equities at Merrill Lynch and a director of AXE ECN.

AXE is currently awaiting the outcome of an Australian Market Licence (AML) application lodged on 31 January with the Australian Securities and Investments Commission (ASIC).

The company has established an office in Sydney and is employing staff.

ECNs are high-speed, low-cost platforms that separate listing from trading functions and are already available in most leading global markets.

AXE ECN is a joint venture between New Zealand Exchange Limited, Citigroup, CommSec, Goldman Sachs JBWere, Macquarie Securities and Merrill Lynch.