In line with an official report ‘published‘ by Forbes, the second largest global stock exchange named ‘Nasdaq’ has declared that seven crypto exchanges are already employing its market monitoring technology.
Just two of those seven collaborations are the Winklevoss twins’ Gemini exchange, and Vctrade, under the Japanese monetary services giant named SBI Holdings.
Renowned stock market giant shared its rigorous vetting system for crypto business players that seek to use its monitoring technology, called the SMARTS Market Surveillance System. SMARTS is a cross-market, cross-asset monitoring tool that correlates real-time and historical data with detection patterns to trace illicit market activities, like spoofing and wash mercantilism.
A Nasdaq representative stated Forbes that the firm assesses prospective crypto user as per three broad criteria — their business model, KYC [Know Your Customer] and AML [Anti Money Laundering] measures and exchange governance and controls.
Forbes reported that the primary two sections especially disclosed Nasdaq’s particular concern for reputability.
The last criterion reportedly embody’s an inquiry into how transparent a platform is in regard their listing procedures for new crypto assets.
Around twenty Nasdaq staff are reportedly tasked with assessing whether or not the applicant crypto exchange has not solely the technical capability, but additionally the “moral inclination” to use the anti-market manipulation tool judiciously.
An individual from Nasdaq’s market monitoring division named ‘Tony Sio’, told Forbes:
“Historically, we don’t do such a large vetting method for our users as they’re much more well-known. However as we started operating with less well-known names, startups, then we needed to try this check process method.”
Just last Nov., Nasdaq ‘disclosed‘ its partnership with U.S. financial institution ‘VanEck’ to conjointly launch a group of regulated and surveilled digital assets products, that are set to harness the SMARTS system.
Crypto exchanges have implemented alternative tech from Nasdaq within the past. As an example, recently launched tokenized asset mercantilism platform, DX Exchange, ‘uses‘ the firm’s FIX [financial information Exchange] protocol.
Just earlier this week, Nasdaq joined Citigroup along with Mike Novogratz’s crypto-focused merchant bank, Galaxy Digital Holdings in an exceedingly $20 Mln investment in a blockchain and smart contract platform for capital markets.
Even earlier this month, Nasdaq’s president and chief executive officer named ‘Adena Friedman’, aforesaid that she believes crypto can have a role within the future of the world-wide economy, characterizing “the invention itself as an incredible demonstration of genius and creative thinking.”