Order

Based

Dynamic

Artificial Intelligence

<p><strong>Nasdaq has introduced an AI-Powered Order Type that could revolutionize trading.</strong></p> 
<h2 style="text-align: center;" id="breaking-ground-with-sec-s-approval">Breaking Ground with SEC’s Approval</h2> 
<p>In a big step forward for stock exchanges, Nasdaq has introduced a <a href="https://news.bitcoin.com/sec-greenlights-nasdaqs-first-ai-powered-order-type/" target="_blank" rel="noopener">groundbreaking innovation</a>: the Dynamic Midpoint Extended Life Order (M-ELO), backed by Artificial Intelligence (AI). The SEC, the body that regulates securities, has given its official nod to this exciting development. This move demonstrates Nasdaq’s commitment to using cutting-edge tech to make its exchange more efficient and effective.</p> 
<blockquote class="twitter-tweet"> 
 <p dir="ltr" lang="en">⚡ Bringing AI to the capital markets: Today, <a href="https://twitter.com/Nasdaq?ref_src=twsrc%5Etfw">@Nasdaq</a> announced it has received <a href="https://twitter.com/SECGov?ref_src=twsrc%5Etfw">@SECGov</a> approval to launch Dynamic Midpoint Extended Life Order (M-ELO), the first artificial intelligence (AI) powered order type.</p> 
 <p>Learn more about this next step we are taking to modernize markets,… <a href="https://t.co/vFkLdjM3Br">pic.twitter.com/vFkLdjM3Br</a></p> 
 <p>— Nasdaq (@Nasdaq) <a href="https://twitter.com/Nasdaq/status/1700159854877303269?ref_src=twsrc%5Etfw">September 8, 2023</a></p>
</blockquote> 
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p> 
<h2 style="text-align: center;" id="the-dynamic-m-elo-changing-the-game">The Dynamic M-ELO: Changing the Game</h2> 
<p>The M-ELO is designed to match people who plan to invest for a longer time on a neutral platform regulated by the SEC. What makes this order type special is that it has a short waiting period before any trade can happen. This ensures that only serious parties engage in transactions, improving the quality of trades.</p> 
<p>But here’s where it gets really exciting. The new Dynamic M-ELO goes a step further by using AI to adjust holding periods in real-time. This dynamic approach aims to improve fill rates (how many orders get matched) and reduce the impact on stock prices. Initial tests have shown great results, with the AI considering over 140 factors and improving trade volume by more than 30%. This order type not only boosts liquidity (how easily you can buy or sell) but also makes trades better, something that’s usually a trade-off. Dynamic M-ELO bridges this gap by adapting to what’s happening in the market right now.</p> 
<blockquote class="twitter-tweet"> 
 <p dir="ltr" lang="en">Nasdaq <a href="https://twitter.com/search?q=%24NDAQ&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$NDAQ</a> just received SEC approval to launch the first exchange AI-powered order type “Dynamic Midpoint Extended Life-Order (M-ELO)” <a href="https://t.co/XaO2moMino">pic.twitter.com/XaO2moMino</a></p> 
 <p>— Evan (@StockMKTNewz) <a href="https://twitter.com/StockMKTNewz/status/1700129041548763490?ref_src=twsrc%5Etfw">September 8, 2023</a></p>
</blockquote> 
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p> 
<h2 style="text-align: center;" id="smart-changes-based-on-real-time-data">Smart Changes Based on Real-Time Data</h2> 
<p>Traditionally, M-ELO used a fixed holding period based on general market conditions. But Nasdaq realized that adjusting this period in real-time makes trades much better. This insight led to the creation of the Dynamic M-ELO, which increased fill rates by a remarkable 20.3% and reduced unwanted trades by 11.4%.</p> 
<h2 style="text-align: center;" id="nasdaq-s-commitment-to-innovation">Nasdaq’s Commitment to Innovation</h2> 
<p>Nasdaq’s President, Tal Cohen, emphasizes their commitment to innovation and making markets better for everyone. Kevin Kennedy, an executive at Nasdaq, highlights their long history of investing in technology, which has allowed them to use AI to improve the market. As markets become more unpredictable, Nasdaq aims to support its clients with top-notch markets and cutting-edge solutions.</p> 
<h2 style="text-align: center;" id="beyond-order-types-nasdaq-s-ai-ventures">Beyond Order Types: Nasdaq’s AI Ventures</h2> 
<p>Nasdaq’s venture into AI doesn’t stop with order types. This year, the company also brought predictive AI into its US options markets. This initiative aims to boost efficiency and align strike lists more closely with market demand. Considering there are a staggering 1.5 million individual options symbols in the US, Nasdaq’s Strike Price Optimization Program uses predictive AI to figure out which strikes are likely to be traded and which aren’t. This ensures a good number of strikes are listed, while also increasing liquidity and streamlining operations.</p> 
<h2 style="text-align: center;" id="conclusion-transforming-stock-exchanges">Conclusion: Transforming Stock Exchanges</h2> 
<p>Nasdaq’s <a href="https://walletinvestor.com/magazine/nasdaq-plans-to-launch-crypto-custody-services-in-q2-2023" target="_blank" rel="noopener">recent strides</a>, especially the introduction of AI-powered Dynamic M-ELO, mark a significant shift in the world of stock exchanges. It’s not just about adopting new technologies; it’s about redefining how stock exchanges work to make them more efficient, adaptable, and in tune with the rapidly changing financial world.</p>

Nasdaq’s Revolutionary AI-Powered Order Type

Table of Contents

WalletInvestor

Other articles published on Sep 9, 2023

Whales Sell 43,000 ETH on Coinbase, While 'Smart Money' Bought ETH on Dip This Week

ETH Investors Stop Withdrawing From Exchanges: Selloff to Come?

10 Ribu Pengunjung dan 300 Partisipan Akan Hadir di Konferensi Crypto "Token2049' di Singapura

Here’s How FTM Makes Transactions Lightning Fast All the Time

FTX looks to claw back millions paid to Shaq, other celebrity endorsers

Kripto Solana dan Chainlink Mulai Dilirik, Everlodge Mengikuti

Join our free newsletter for daily crypto updates!