The US Commodity Futures Trading Commission (CFTC) will integrate the Nasdaq monitoring system to strengthen the supervision of digital assets and derivatives trade.
The agency confirmed the move on 27 August and noted that it marks the replacement of its outdated monitoring tools from the nineties with technology built for today’s 24-hour markets.
Why the CFTC is upgrade
The supervisor noted that supervision is supervised by different markets, from raw materials and currencies to crypto and event contracts.
However, recent growth in these markets and structural changes, such as continuous trading hours, have increased the risk of abuse and manipulation.
In view of this, the CFTC noted that this evolving environment forced its hand to find aids that are able to process higher volumes and more complex trade behavior.
As a result, it is integrating the Nasdaq platform to give a consolidated picture of activa classes and to generate automated reports when suspicious patterns come to the fore. This would enable the agency to drill to detail level at transaction level, to check ordering book activity in real time and quickly scale during periods of volatility.
In particular, the technology of the Nasdaq is already used by more than 50 trade fairs and 20 supervisors worldwide, making it one of the most determined tools in market monitoring.
By adopting this system, the CFTC wants to detect misconduct more efficiently and respond faster to potential threats for market integrity.
Acting chairman Caroline D. Pham described the Nasdaq system as a way to offer staff with “cross-market analyzes and automated reports” that will improve the research and improve resources.
She added:
‘[This is] The newest example of our work in recent months to create the transformation and optimization that is needed to make the CFTC a 21st -century regulator. The CFTC is a leader in derivatives regulation and the market monitoring platform of Nasdaq will be an important part of our success. “
In the meantime, this shift also corresponds to the constant ‘crypto -sprint’ of the agency, an initiative to apply recommendations from a Witte House report on digital assets.
These movements illustrate the regulator’s attempt to balance innovation with investor protection by investing in data -driven monitoring of the emerging sector.