Nasdaq Shortens Resting Period for Midpoint Extended Life Order

Nasdaq created the Midpoint Extended Life Order (M-ELO) in 2018 to help institutional investors with longer-term investment horizons interact with each other at the midpoint of the National Best Bid and Offer (NBBO). There is a built-in holding period before a M-ELO order can be executed, to protect M-ELO orders from negative price impact.

In the below e-mail to customers, published with Nasdaq’s permission, the exchange announced a reduction in the holding period from 500 milliseconds, or half a second, to 10 milliseconds.

Effective Monday, May 11, Nasdaq is optimizing the M-ELO timer by reducing the holding period from 500ms to 10ms. This enhancement will broaden the spectrum of order type use-cases and opportunities while sustaining its strong performance characteristics. M-ELO remains the highest performing order type among its peers, providing a purpose-built midpoint solution to minimize market impact on the single largest exchange in the U.S. 
Benefits of M-ELO and M-ELO + Continuous Book Orders:
Interact with like-minded investors
Increased availability for algo and routing strategies
Highest quality of execution at the midpoint of the NBBO
During March’s unprecedented volatility, M-ELO’s quote stability remained consistent and the M-ELO order type outperformed all other venues, including those offering a delay mechanism.
Absolute market response shows the low impact and trade footprint of a M-ELO execution.
To better understand the benefits of M-ELO, as well as the market response to the recent periods of volatility, tune into #TradeTalks with Nasdaq Global Markets Report Jill Malandrino.
#TradeTalks: Nasdaq M-ELO Order Type Enhancements with Reduced Holding Period
Andrew Oppenheimer
AVP, U.S. Equities
#TradeTalks: Spreads, Liquidity, Routing and Nasdaq’s Midpoint Segment Called M-ELO
Chuck Mack
Head of U.S. Equities
If you have any questions about the above information, don’t hesitate to reach out to us at We look forward to helping you incorporate M-ELO into your trading strategies!