TECH - Nasdaq's M-ELO Tool Represents Stock Market's AI Adoption But With SEC Approval | Benzinga
The U.S. Securities and Exchange Commission (SEC) gave a nod of approval to Nasdaq Inc’s (NASDAQ: NDAQ) newest artificial intelligence (AI)-powered trading tool.
The company's "Midpoint Extended Life Order” (M-ELO) is being touted as the first AI order type to gain the endorsement.
Here’s what you need to know, and how it is going to affect you.
What Happened: Nasdaq’s M-ELO leverages AI to fine-tune the trading process. The M-ELO system can adjust to real-time current market conditions by using advanced algorithms that factor in over 140 data points every 30 seconds.
The adjustment — as opposed to the more traditional static approach — aims to bring traders better results, particularly in areas like fill rates (completing trades) and market impact (how much a stock ...