Cryptocurrency exchange Gemini has partnered with Nasdaq to monitor all trading pairs of its crypto marketplace.
Under the agreement, Gemini will deploy Nasdaq’s SMARTS Market Surveillance to automatically detect any possible price manipulation or other illicit activities.
Nasdaq’s technology enables compliance teams at sell-side firms to minimize the most common surveillance challenges, such as translating regulatory guidelines/rules governing trading conduct into trading alerts that effectively identify potentially abusive trading behavior. It automates the detection, investigation and analysis of potentially abusive or disorderly trading, to help improve the overall efficiency of the surveillance organization and reduce cost, even as market complexity and new regulations increase.
“SMARTS Market Surveillance, which is considered the most widely deployed surveillance system in the world, will enable us to monitor across all of our trading pairs, including BTC/USD, ETH/USD and ETH/BTC,” Gemini said in a statement. “Further, SMARTS will surveil our newly launched Gemini Block Trading, as well as Gemini Auctions, which are used to determine the settlement price for the Bitcoin (USD) Futures Contracts that trade on Cboe’s CFE Exchange under the ticker symbol “XBT.”
Cameron Winklevoss, Co-Founder and President at Gemini, said that adding trade surveillance technology is the most recent development in the company’s efforts to build a rules-based marketplace.
“We believe that it is this advanced functionality combined with Nasdaq’s proven, rule-based approach to traditional financial market surveillance that will allow for the most thorough monitoring of the evolving crypto-asset marketplace, today and into the future,” Cameron Winklevoss said.
Tyler Winklevoss, Co-Founder and CEO at Gemini, said the move is part of Gemini’s efforts to maintain a fair market.
“Since launch, Gemini has aggressively pursued comprehensive compliance and surveillance programs, which we believe betters our exchange and the cryptocurrency industry as a whole,” Tyler Winklevoss said.
The announcement comes on the same day as Nasdaq CEO Adena Friedman said that the company is open to becoming a cryptocurrency exchange platform once the market matures.
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