The SEC just approved the Nasdaq’s request to operate a badass new AI-driven order type. This thing is called the dynamic midpoint extended life order (M-ELO), and let me tell you, it’s a game changer. Unlike the basic M-ELO, this bad boy is dynamic, meaning it uses artificial intelligence to constantly update itself in real-time. We’re talking about a whole new level of automation here.
Order types are basically sets of software instructions that execute specific trade pairs at specific market prices. It’s been around for a while, but this AI-driven order type is like nothing we’ve seen before. It’s using real-time reinforcement learning AI to execute orders. That’s some next-level stuff right there.
And let me tell you, this is gonna speed things up big time. According to Nasdaq, dynamic M-ELO showed a 20.3% increase in fill rates and an 11.4% reduction in mark-outs during testing. That’s no joke. This new functionality analyzes over 140 data points every 30 seconds to detect market conditions and optimize the holding period before a trade is executed. Talk about precision.
Instead of sticking to the old-school static timeouts, this system adjusts the holding periods for orders in real time. That means fill rates go up without causing a major impact on the market. It’s a win-win situation.
So yeah, the Nasdaq just brought some serious firepower to the table with this AI-driven order type. Get ready for faster and more efficient trades, my friends. The future just got a whole lot cooler.