Nasdaq Announces First Exchange AI Powered Order Type Approved By The SEC
Portfolio Pulse from Benzinga Newsdesk
Nasdaq (NASDAQ:NDAQ) has received SEC approval to launch Dynamic Midpoint Extended Life Order (M-ELO), the first exchange Artificial Intelligence (AI) powered order type. The AI model applies over 140 factors and offers an average combined volume-weighted improvement of over 30% in testing. The new order type is expected to improve fill rates and reduce market impact. Nasdaq also implemented predictive AI in its US options markets this year to improve overall efficiency.
September 08, 2023 | 12:06 pm
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Nasdaq's new AI-powered order type, Dynamic M-ELO, approved by the SEC, is expected to improve fill rates and reduce market impact, potentially increasing the company's market competitiveness.
The approval of Nasdaq's AI-powered order type by the SEC could enhance the company's product offerings and potentially attract more market participants, which could positively impact the company's stock in the short term.
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