The Securities and Exchange Commission (SEC) is considering whether to approve or reject a proposed rule change by NYSE Arca, Inc. This proposal aims to replace the current Discretionary Pegged Order (DPO) with a new Selective Midpoint (SeMi) Order, which uses machine learning to determine market instability and adapt trading patterns accordingly. Additionally, the SeMi Orders can be designed to provide liquidity under certain conditions, a feature not available with DPOs. The SEC has opened a period for public comments to help assess if the proposal aligns with relevant financial regulations and fair trading practices.
Simple Explanation
The SEC is thinking about letting a stock market use a new tool that helps decide when to buy or sell using smart computer thinking, but they want to make sure it plays fair and doesn't confuse anyone. They're asking people to share their thoughts on whether the new tool is okay to use.