Gemini Will Monitor its Bitcoin, Ethereum Markets Using Nasdaq Tec
Gemini, the Winklevoss twins’ cryptocurrency exchange, has announced a partnership with Nasdaq to use the latter’s technology to monitor all trading pairs of its crypto marketplace.
With the new agreement, Gemini will deploy Nasdaq’s surveillance technology, dubbed SMARTS, for increased oversight over its recently introduced block trading feature and all trading pairs including BTC/USD, ETH/USD and BTC/ETH, Gemini said in a statement on Wednesday.
Further, the surveillance technology will also be used to oversee activity across Gemini’s auction process wherein data gathered is used by Cboe’s CFE Exchange to determine the settlement price for Bitcoin futures contracts.
The technology will enable help monitor real-time trading of bitcoin and ethereum on Gemini’s marketplace to determine and flag unusual trading patterns. SMARTS is used by some of the largest exchanges in the world, including the Intercontinental Exchange (ICE)and the Hong Kong Exchanges and Clearing Ltd.
Gemini president and co-founder Cameron Winklevoss added in a statement with the Wall Street Journal:
We’re doing this because we believe in the importance of creating a rules-based marketplace. We believe this is where things are headed.
Gemini sees Nasdaq’s SMARTS as ‘the most widely deployed surveillance system in the world’, stressing its implementation will further help the exchange build a ‘rules-based marketplace’ at a time when regulators and authorities, particularly in New York, increase their scrutiny into the operations of cryptocurrency exchanges.
Nasdaq, meanwhile, talked up the integration of its technology in ‘non-traditional marketplaces’ like cryptocurrency exchanges that are now held to the regulatory standards required of Wall Street companies.
“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,” said Nasdaq’s senior vice president Valerie Bannert-Thurner. “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.”
Gemini, which operates in the state of New York as a fiduciary without the mandated requirement of the state’s ‘BitLicense’, was one of 13 cryptocurrency trading platforms named in an inquiry for transparency by New York Attorney General Eric Schniederman last week.