SEC Approves Nasdaq to Launch First AI-Powered Stock Order Type

The SEC has authorized Nasdaq to launch the first AI-powered order type, Dynamic Midpoint Extended Life Order (M-ELO).

M-ELO will use AI to adjust dynamically to market conditions, enhancing liquidity and execution.

Nasdaq implemented predictive AI in its U.S. options markets earlier this year.

Nasdaq says M-ELO will improve fill rates and reduce market impact.

Nasdaq aims to modernize markets; it has embraced AI, like implementing it in options trading earlier this year.