Market surveillance technology developed by Nasdaq could help clean out the cryptocurrency trading system. Gemini and SBI Virtual Currencies already employ the tool
Fraud in trading cryptocurrencies is attributed to market volatility and a deficiency in regulatory policies. Insider trading, wash trading, pump-and-dump, spoofing and layering are some of the acts that Nasdaq’s technology aims to prevent; Bloomberg reports.
The world’s second largest stock exchange says it uses decades of experience to develop such tools to safekeep the market.
Gemini and SBI Virtual Currencies
Gemini Trust Co. appointed Nasdaq to closely observe its BTC and ETH trading through SMARTS Market Surveillance. The surveillance also extends to the auction for Cboe’s BTC futures. Gemini supplies the price for Cboe’s BTC futures contract.
In addition to Gemini, SBI Virtual Currencies are currently using the technology.
SMARTS Market Surveillance
To entice liquidity, exchanges need to be transparent, fair, and safe. Nasdaq’s SMART Market Surveillance monitors the market and its compliance. It is made to correlate historical and real-time data to identify unusual trading patterns.