Gemini, the Winklevoss backed, New York-based cryptocurrency exchange last week announced a new partnership with Nasdaq. The agreement is to leverage Nasdaq’s SMARTS Market Surveillance technology to enable the company to monitor all its trading pairs including BTC/USD, ETH/USD, and BTCETH, as well as the auction process that is used to determine the settlement price for Bitcoin futures on Cboe’s CFE Exchange platform.
Gemini CEO Tyler Winklevoss said, in a statement, “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 SMART Market Surveillance will help ensure that Gemini is a rules-based marketplace for all market participants.”
According to the company’s statement, Nasdaq’s SMARTS surveillance technology is the industry standard for automated detection, investigation, and analysis of disorderly or abusive trading to help improve efficiency and reduce cost, even as market complexity and regulation grows. Nasdaq points out that its used in 65 countries, by 17 regulators, 45 marketplaces, and over 140 market participants, including some of the largest and most influential buy-side institutions in the world.
Senior Vice President and Head of Risk & Surveillance Solutions at Nasdaq Valerie Bannert-Thurner added, “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.”
