Electronic Currency Transfer it is commonly used by brokers when dealing with cash and not leverage products. It is mainly a direct methodology to buy and sell shares in a company.
For example a trader buying $1000 worth of shares in Bank of America will buy direct from the seller instead of buying it from the broker. The broker in this case charge a commission for facilitating the transaction.
In leverage products such as CFD and Forex trading; in many circumstances the trader will buy from the broker. The broker could then buy from the market through its spread and could also hedge its position which isn’t beneficial to the trader.
Many brokers are looking into the possibilities of using the system for leverage products. One disadvantage for traders could be liquidity in the market of their choice. But as far as trading popular markets including popular CFD equities, there should be enough liquidity to be able to do the buy and sell transactions.
By using this system, brokers could abolish spread and be commission based only.