The Commodity Futures Trading Commission (CFTC) is launching a new surveillance platform in collaboration with Nasdaq to keep tabs on digital asset markets.
In a new press release, the regulator says it is amplifying its anti-fraud detection capabilities to ensure the market’s integrity by utilizing Nasdaq’s latest surveillance tech.
According to the CFTC, the upgrade is a part of Acting Chairman Caroline D. Pham’s pledge made earlier this year to modernize its “90s-era legacy system.”
As stated by Pham in the press release,
“As our markets continue to evolve and integrate new technology, it’s critical that the CFTC stays ahead of the curve. Nasdaq Market Surveillance will, for the first time, provide the CFTC with automated alerts and cross-market analytics that will benefit each of the CFTC’s operating divisions and better protect our markets from fraud, manipulation and abuse.
This new suite of solutions will also improve efficiency in analyzing market trends and identifying unusual or disruptive trading activity so that our lean and talented staff can take appropriate action more quickly.
It’s the latest example of our work in recent months to bring about the transformation and optimization necessary to make the CFTC a 21st-century regulator. The CFTC is a leader in derivatives regulation, and Nasdaq’s market surveillance platform will be a key component to our success.”
The regulatory body details how Nasdaq’s technology will provide the ability to recognize manipulation patterns across multiple asset classes, conduct detailed transaction analysis, and generate automated alerts.
According to the press release, Nasdaq’s technology is currently the most widely used market surveillance product in the world, serving 50 exchange platforms and 20 international regulators.
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