Nasdaq, one of the largest stock markets in the world, has received approval from the US Securities and Exchange Commission (SEC) to launch an AI-based prototype order called the “Dynamic Midpoint Extended Life Order” (Dynamic M-ELO). This new order is designed to increase the speed and efficiency of transactions, improving fill rates by over 20% and reducing mark-outs by 10%.
The Dynamic M-ELO combines supply and demand for long-term stock positions by analyzing potential new option contracts and predicting future trades. The AI system analyzes over 140 factors in real-time to reduce the impact of Trading on stock prices, benefiting long-term investors and finding matches more efficiently.
The introduction of an AI-based order on a major stock exchange like Nasdaq highlights the potential of this technology, which has gained attention in the cryptocurrency Market. This move towards AI in capital markets promises greater efficiency for both institutions and retail investors and allows them to leverage AI for an operational advantage.
Nasdaq’s president of market platforms, Tal Cohen, commented on the innovation, stating that the AI-powered Dynamic M-ELO is a purpose-built solution that emphasizes their commitment to delivering innovative products. Nasdaq’s executive vice president of North American business services, Kevin Kennedy, also expressed support for the introduction of innovative solutions.
Meanwhile, the correlation between the Nasdaq composite and Bitcoin seems to be wearing off after a period of positive correlation over the summer. The Nasdaq composite, which represents an index of all the stocks listed on the exchange, has seen negative performance since mid-July, while Bitcoin prices have also declined. The two assets have shown signs of correlation in the past, with Bitcoin following the movements of the stock index. However, the correlation seems to have reversed recently, with a downward surge in late August.
Although the directionality seems to be leaning towards a continuation of the de-correlation, it is worth noting that there is still a positive correlation between the two assets. The correlation coefficient, which ranges from -1 to +1, currently stands at 0.33. Data from The Block shows that over the past four years, the 30-day “Pearson Correlation” has mostly been above 0, indicating that the two assets generally move in the same direction. There have only been a few periods when BTC and Nasdaq moved in opposite directions.
In summary, Nasdaq’s approval to launch an AI-based order on its electronic stock market demonstrates the growing presence of AI in capital markets. The Dynamic M-ELO order aims to improve transaction speed and efficiency, benefiting both long-term investors and the market as a whole. Meanwhile, the correlation between the Nasdaq composite and Bitcoin seems to be breaking, with the two assets moving in different directions in recent months..
#Nasdaq #SEC #approved #prototype #AIbased #market #order
The Dynamic M-ELO combines supply and demand for long-term stock positions by analyzing potential new option contracts and predicting future trades. The AI system analyzes over 140 factors in real-time to reduce the impact of Trading on stock prices, benefiting long-term investors and finding matches more efficiently.
The introduction of an AI-based order on a major stock exchange like Nasdaq highlights the potential of this technology, which has gained attention in the cryptocurrency Market. This move towards AI in capital markets promises greater efficiency for both institutions and retail investors and allows them to leverage AI for an operational advantage.
Nasdaq’s president of market platforms, Tal Cohen, commented on the innovation, stating that the AI-powered Dynamic M-ELO is a purpose-built solution that emphasizes their commitment to delivering innovative products. Nasdaq’s executive vice president of North American business services, Kevin Kennedy, also expressed support for the introduction of innovative solutions.
Meanwhile, the correlation between the Nasdaq composite and Bitcoin seems to be wearing off after a period of positive correlation over the summer. The Nasdaq composite, which represents an index of all the stocks listed on the exchange, has seen negative performance since mid-July, while Bitcoin prices have also declined. The two assets have shown signs of correlation in the past, with Bitcoin following the movements of the stock index. However, the correlation seems to have reversed recently, with a downward surge in late August.
Although the directionality seems to be leaning towards a continuation of the de-correlation, it is worth noting that there is still a positive correlation between the two assets. The correlation coefficient, which ranges from -1 to +1, currently stands at 0.33. Data from The Block shows that over the past four years, the 30-day “Pearson Correlation” has mostly been above 0, indicating that the two assets generally move in the same direction. There have only been a few periods when BTC and Nasdaq moved in opposite directions.
In summary, Nasdaq’s approval to launch an AI-based order on its electronic stock market demonstrates the growing presence of AI in capital markets. The Dynamic M-ELO order aims to improve transaction speed and efficiency, benefiting both long-term investors and the market as a whole. Meanwhile, the correlation between the Nasdaq composite and Bitcoin seems to be breaking, with the two assets moving in different directions in recent months..
#Nasdaq #SEC #approved #prototype #AIbased #market #order
