Nasdaq Inc. is pressing forward with a multi-year strategy to modernize its market infrastructure, combining cloud migration, artificial intelligence, and policy engagement to strengthen the global financial ecosystem. In a statement released ahead of the Securities Traders Association’s annual meeting in Washington, D.C., on September 1, 2026, Nasdaq President Tal Cohen outlined the company’s progress and priorities, including the upcoming migration of its second U.S. options market to the cloud and the recent approval of an AI-powered order type.
Cloud Migration: From MRX to GEMX and Beyond
Nasdaq’s journey to the cloud began more than a decade ago, with the company systematically moving non-critical workloads before announcing a strategic partnership with Amazon Web Services (AWS) in 2022. The collaboration yielded the successful migration of MRX, a U.S. options market, and the company now plans to migrate GEMX, another of its options venues, in the coming weeks. These moves are part of a broader effort to build the next generation of cloud-enabled capital markets infrastructure.
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Cohen emphasized that the benefits extend beyond Nasdaq’s own operations. By sharing lessons learned from its hybrid infrastructure, Nasdaq aims to help other market infrastructure providers modernize their systems, enhancing agility and operational efficiency across the industry. The company operates 18 markets across North America, the Nordics, and the Baltics, and provides technology to more than 130 marketplaces globally.
AI in Market Operations: SEC Approval for M-ELO
Nasdaq has also been integrating artificial intelligence into its market operations, with a focus on governance and oversight. The company received SEC approval last month to launch the Dynamic Midpoint Extended Life Order (M-ELO), described as the first exchange AI-powered order type. M-ELO is designed to adapt to real-time market conditions, improving execution quality and fill rates for participants.
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Beyond trading, Nasdaq uses AI to bolster its regulatory functions and anti-financial crime capabilities. Cohen noted that the company has invested heavily in data quality and cloud infrastructure over the past decade to unlock the potential of AI, while establishing internal committees to ensure responsible deployment.
Regulatory Engagement and Policy Advocacy
Operating exchanges across multiple jurisdictions means Nasdaq is deeply involved in policy discussions on both sides of the Atlantic. The company has been an active voice in debates around market structure, advocating for data-driven, incremental enhancements that incorporate input from industry and the public. This year has seen a flurry of regulatory developments, and Nasdaq has positioned itself as a proponent of responsible innovation.
Cohen’s comments come as the financial services industry grapples with increasing complexity in macro dynamics, regulations, and technology. Nasdaq’s focus remains on supporting its more than 3,000 institutional clients—spanning buy-side, sell-side, banks, and market infrastructure providers—as they work through these changes.
What This Means for Market Participants
For traders and investors, the migration of core market infrastructure to the cloud and the introduction of AI-powered order types could translate into more resilient and efficient markets. Cloud-based systems offer enhanced availability, scalability, and flexibility, while AI tools aim to improve execution quality and reduce market friction.
However, the transition is not without challenges. Regulators are scrutinizing the use of AI in financial markets, and Nasdaq’s approach—emphasizing governance and oversight—may serve as a template for other exchanges. The company’s next milestones, including the GEMX migration and broader AI adoption, will be closely watched by industry observers.
This article is for informational purposes only and does not constitute financial advice. Market conditions are volatile, and readers should conduct their own research before making investment decisions.
