Nasdaq announced that the company will be collaborating with the cryptocurrency exchange, Gemini. SMARTS market surveillance technology used by Nasdaq will be shared with the Gemini exchange, led by Tyler and Cameron Winklevoss. The technology will help Gemini to monitor cryptocurrency trading as well as routine auctions which are used to decide the settlement prices of Bitcoin futures on CFE (Cboe Futures Exchange).
Tyler Winklevoss shared his thoughts on the collaboration, “Since launch, Gemini has aggressively pursued comprehensive compliance and surveillance programs, which we believe betters our exchange and the cryptocurrency industry as a whole. Our deployment of Nasdaq’s SMARTS Market Surveillance will help ensure that Gemini is a rules-based marketplace for all market participants.”
SMARTS will also closely observe irregular or scam trading to increase the efficiency of the platform. Valerie Bannert-Thurner, Senior Vice President and Head of Risk & Surveillance Solutions at Nasdaq, said, “Gemini has been a leading voice in advocating for stronger transparency and thoughtful regulation of the cryptocurrency markets – views we deeply share and have put into practice as a market operator and technology partner. Being regulated by the New York State Department of Financial Services (NYSDFS), Gemini is held to the utmost standards in terms of capital reserve requirements. This is a major milestone in the application of SMARTS- and 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.”
On the same day, April 25th, Nasdaq CEO Adena Friedman said that the company could become a cryptocurrency exchange in the future. “It’s time, people are ready for a more regulated market, for something that provides a fair experience for investors,” added Friedman. She previously told NBC that ICOs need regulation, “The SEC is right that those are securities and need to be regulated as such.”
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