In a groundbreaking move, the U.S. Securities and Exchange Commission (SEC) has given Nasdaq the green light to introduce a cutting-edge AI-based trading tool, known as Dynamic Midpoint Extended Life Order (M-ELO). This innovative tool possesses the ability to swiftly adjust orders in real-time, offering substantial advantages to traders while promoting connectivity among like-minded investors.
Nasdaq’s comprehensive tests have shown promising results, with a remarkable 20.3% surge in fill rates and an impressive 11.4% reduction in mark-outs, signifying its potential benefits.
How AI Boosts Efficiency
Interestingly, despite the heightened crypto rules, the SEC’s nod to AI is quite amusing as it shows their double standards on innovative technology. In the cloudy air how AI is making waves? All because the new M-ELO will use real-time AI to swiftly respond to market changes. This differs from previous methods, as it constantly adjusts order durations based on real-time data, providing more flexibility.
The ultimate goal is to enhance liquidity and execution quality.
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Times are Tough – Will This Help Traders?
On the top, Traders will now have more tools to navigate potentially in the unregulated crypto markets. It seems doubtful how useful the technology will be for the future market. Notably, this advancement aligns with Nasdaq’s commitment to supporting market participants with innovative solutions.
Nasdaq’s dedication to innovation extends beyond M-ELO, encompassing other areas such as dynamic multi-exchange link optimization (M-ELO) and predictive AI in U.S. options markets. These enhancements are aimed at bolstering efficiency and meeting the evolving requirements of traders. Kevin Kennedy, Nasdaq’s Vice President of Trading, expresses his enthusiasm for collaborating with market participants to provide top-tier solutions.
Also Read: London Stock Exchange to Trade Traditional Assets with Blockchain!
Efficiency and Effectiveness: A Top Priority
The introduction of Dynamic M-ELO marks a significant stride in the integration of AI within trading systems. With notable increases in fill rates and reductions in mark-outs, the impact on trading efficiency and effectiveness is undeniably positive. This innovative feature meticulously scrutinizes each trading symbol individually, examining over 140 different data points every 30 seconds to pinpoint the optimal trade execution time.
Nasdaq’s Dynamic M-ELO is poised to reshape the landscape of trading, offering traders a more agile and responsive approach to the market.
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