Nasdaq Reminds Market Surveillance Tool To Prevent Crypto Price Rigging
Bloomberg said the world’s second largest stock exchange, NASDAQ, had said its market surveillance technology could prevent price rigging in cryptocurrency markets.
Referring to a Nasdaq’s unpublished paper, in which the exchange has explained it has spent “decades” building fool proof mechanisms for discovering and preventing market manipulation.
Nasdaq’s paper further states “Regulators, brokers and exchanges have surveillance teams that monitor activity constantly and advanced technologies to help capture and analyze abusive behaviors including pump-and-dump schemes, insider trading, wash trading as well as spoofing and layering.”
The decision comes as Bitcoin’s new-found steadiness briefly takes importance off the allegation that its markets were subject to shady play. Notably, some commentators, including a US watchdog, had attributed volatility earlier this year to large-volume traders. NASDAQ got its first cryptocurrency related business as client for its SMARTS Market Surveillance solution in April in the form of Gemini, the cryptocurrency exchange founded and run by Winklevoss twins.
At that time, Valerie Bannert-Thurner, Senior Vice President and Head of Risk & Surveillance Solutions at NASDAQ, portrayed the collaboration as a “major milestone” for the surveillance technology.
Valerie Bannert-Thurner further said that the solution symbolized “an important indicator of our commitment to expand the use of our market technology into non-traditional marketplaces, as well as new frontiers beyond the capital markets.”
Bloomberg has pointed out that various non-cryptocurrency exchanges also makes use of SMARTS.