Nasdaq has announced that it will be offering SMARTS Market Surveillance to Gemini, a New York-based cryptocurrency exchange, which will monitor its marketplace. Gemini will use the surveillance technology to immediately detect any price alterations or illegal activities.
According to the announcement, the technology will also allow Gemini to monitor throughout all of its trading pairs, such as Bitcoin/US dollar (BTC/USD), Ethereum/US dollar (ETH/USD) and Bitcoin/Ethereum (BTC/ETH). It will additionally be able to review processes across Gemini’s auction activity that is used to control the settlement price for Bitcoin contracts that trade on the Chicago Board Options Future Exchange (CBOE CFE).
Nasdaq, the world’s second-largest stock exchange, explains that this technology is used to surveil its own marketplaces for irregular activity, with functions of the system correlating past trading data with data as it takes place in order “to ensure early detection unusual trading patterns that could be potential breaches of exchange trading rules and practices.”
The New York-based exchange’s CEO Tyler Winklevoss is hopeful that this will help ensure that Gemini is offering a fair marketplace with regulations and rules keeping things above board in order to protect its users. He said that their “deployment of Nasdaq’s SMARTS Market Surveillance will help ensure that Gemini is a rules-based marketplace for all market participants”.
Winklevoss explained that “Gemini has aggressively pursued comprehensive compliance and surveillance programs, which we believe betters our exchange and the cryptocurrency industry as a whole”.
Valerie Bannert-Thurner, Senior Vice President and Head of Risk & Surveillance Solutions of Nasdaq, expressed the association is exciting for Nasdaq because “Gemini has been a leading voice in advocating for stronger transparency and thoughtful regulation of the cryptocurrency markets” and this is pertinent to Nasdaq because of the “views [they] deeply share”.
She continued to say that this will mark a milestone for SMARTS and emphasizes indication of the company’s commitment to increase the use of our market technology into non-traditional marketplaces.