The Nasdaq logo is displayed at the Nasdaq Market site in Times Square in New York City, U.S., December 3, 2021.
Order types are programmed instructions traders use to tell exchanges how to handle their trades.
M-ELO, first released in 2018, is a strategic order type that enables investors with longer-term horizons to trade with each other using a 10-millisecond waiting period.
Nasdaq's research shows that the real-time AI order type has a 20.3% increase in fill rates and an 11.4% reduction in mark-outs, indicating the improvements AI-powered solutions can bring to capital markets.
"This new order type can increase order fill rate and reduce holding time if successfully implemented, which could help Nasdaq take market shares from other exchange operators," said Owen Lau, senior analyst at Oppenheimer & Co.
Persons:
Owen Lau, Laura Matthews, Mark Porter
Organizations:
Nasdaq, REUTERS, Nasdaq Inc, U.S . Securities, Exchange Commission, SEC, Oppenheimer, Co, Thomson
Locations:
New York City, U.S