Nasdaq Receives SEC Approval for Dynamic AI-Based Order to Boost Market Efficiency, US

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Nasdaq has received approval from the U.S. Securities and Exchange Commission (SEC) for its Dynamic Midpoint Extended Life Order (M-ELO), an artificial intelligence (AI) based exchange order. This move reinforces the company’s commitment to modernizing the markets and leveraging the latest technologies.

The Dynamic M-ELO order aims to enhance market efficiency by speeding up order matches and minimizing market impact. By doing so, it will further boost the efficiency of the already fast-paced stock market. This initiative is expected to result in better trading outcomes.

This development follows the implementation of the Strike Price Optimization Program earlier this year in the Nasdaq U.S. options market. By utilizing predictive AI, the program improved efficiency by aligning strike lists and demand across Nasdaq’s U.S. options exchanges. Given that the market handles a substantial volume of individual options, it became evident that the determination of new strike listings needed improvement.

Tal Cohen, President of Market Platforms at Nasdaq, commented on the introduction of the AI-powered Dynamic M-ELO, stating that the company is committed to modernizing markets in a responsible manner. He emphasized that this purpose-built solution reflects Nasdaq’s ambition to enhance market quality and its dedication to delivering innovative products and tools that benefit all market participants.

Kevin Kennedy, Executive Vice President of North American Trading Services at Nasdaq, echoed this sentiment, explaining that the exchange has both the experience and the underlying technological infrastructure to effectively utilize AI and improve market efficiency.

This approval from the SEC signifies Nasdaq’s ongoing strive to leverage advanced technologies and drive innovation in the markets. By embracing AI and developing purpose-built solutions like the Dynamic M-ELO order, Nasdaq aims to foster market efficiency and provide value to participants.

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In conclusion, Nasdaq’s SEC-approved Dynamic M-ELO order represents a significant milestone in the continued modernization of the markets. By harnessing the power of AI, Nasdaq aims to further enhance market efficiency and deliver innovative solutions that benefit all participants. With its experience and technological infrastructure, Nasdaq is well-positioned to leverage AI effectively and drive advancements in market functionality.

Frequently Asked Questions (FAQs) Related to the Above News

What is the Dynamic Midpoint Extended Life Order (M-ELO) introduced by Nasdaq?

The Dynamic M-ELO is an artificial intelligence (AI) based exchange order introduced by Nasdaq. It aims to enhance market efficiency by speeding up order matches and minimizing market impact, ultimately resulting in better trading outcomes.

How does the Dynamic M-ELO order contribute to improving market efficiency?

The Dynamic M-ELO order boosts market efficiency by speeding up order matches and minimizing market impact. By doing so, it further enhances the already fast-paced stock market and delivers better trading outcomes.

How does Nasdaq leverage predictive AI in its operations?

Nasdaq utilizes predictive AI in various ways, one example being the Strike Price Optimization Program implemented in the Nasdaq U.S. options market. This program improved efficiency by aligning strike lists and demand across Nasdaq's U.S. options exchanges, ensuring better determination of new strike listings.

What are the benefits of Nasdaq's commitment to modernizing the markets through AI?

Nasdaq's commitment to modernizing the markets through AI allows for enhanced market quality and innovative products and tools. This approach benefits all market participants and fosters market efficiency.

How does Nasdaq ensure responsible modernization of the markets?

Nasdaq ensures responsible modernization of the markets by developing purpose-built solutions like the Dynamic M-ELO order. The company prioritizes market quality and delivers innovative products and tools that benefit all market participants.

Who at Nasdaq has commented on the introduction of the AI-powered Dynamic M-ELO?

Tal Cohen, President of Market Platforms at Nasdaq, commented on the introduction of the AI-powered Dynamic M-ELO. He emphasized Nasdaq's commitment to enhancing market quality and delivering innovative products and tools that benefit all market participants.

What is the significance of the approval from the U.S. Securities and Exchange Commission (SEC) for the Dynamic M-ELO order?

The approval from the SEC signifies Nasdaq's ongoing strive to leverage advanced technologies and drive innovation in the markets. It validates Nasdaq's dedication to market modernization and its ability to develop purpose-built solutions like the Dynamic M-ELO order.

How does Nasdaq plan to leverage AI and drive advancements in market functionality?

Nasdaq plans to leverage AI effectively by utilizing its experience and technological infrastructure. By doing so, it aims to drive advancements in market functionality and continuously enhance market efficiency.

In summary, what does Nasdaq's SEC-approved Dynamic M-ELO order represent?

Nasdaq's SEC-approved Dynamic M-ELO order represents a significant milestone in the continued modernization of the markets. By harnessing the power of AI, Nasdaq aims to enhance market efficiency and deliver innovative solutions that benefit all participants. With its experience and technological infrastructure, Nasdaq is well-positioned to drive advancements in market functionality.

Please note that the FAQs provided on this page are based on the news article published. While we strive to provide accurate and up-to-date information, it is always recommended to consult relevant authorities or professionals before making any decisions or taking action based on the FAQs or the news article.

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