Nasdaq Approved to Launch First AI-Driven Order Type, Revolutionizing Trade Execution
Summary:
Nasdaq has received approval from the SEC to launch the first AI-driven order type called the dynamic midpoint extended life order (M-ELO). This innovative system uses real-time reinforcement learning AI to optimize trade execution and speed up orders placed with the system. Analysis of over 140 data points every 30 seconds allows the M-ELO order type to adapt to market conditions. This marks a significant advancement in automation within the capital markets.
The United States Securities and Exchange Commission (SEC) has given its approval for Nasdaq to introduce the first AI-driven order type on September 8. Known as the dynamic midpoint extended life order (M-ELO), this innovative system builds upon the existing M-ELO automated order type by incorporating artificial intelligence, allowing it to adapt and recalibrate itself in real-time. By integrating real-time reinforcement learning AI, this new order type aims to accelerate the execution of trades, marking a significant advancement in automation within the capital markets. Nasdaq's data sheet reveals that the AI-powered order type analyzes over 140 data points every 30 seconds on a symbol-by-symbol basis, enabling it to detect market conditions and optimize the holding period before executing a trade. Further details on this development will be shared as they become available.
Published At
9/8/2023 4:40:32 PM
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