Gemini Trust is now using Nasdaq Inc’s surveillance technology to detect market manipulation and fraudulent traders, the exchange has announced.
The cryptocurrency exchange owned by the Winklevoss twins was one of the 13 requested by New York Attorney’s General office to provide information as part of its inquiry into cryptocurrency exchanges.
The technology called SMARTS Market Surveillance will allow it to monitor several trading pairs including BTC/USD, ETH/USD and BTC/ETH, the company said in a statement. The surveillance technology is highly advanced and widely regarded technology worldwide.
“Since launch, Gemini has aggressively pursued comprehensive compliance and surveillance programs, which we believe betters our exchange and the cryptocurrency industry as a whole,” said Tyler Winklevoss, CEO, Gemini.
“Our deployment of Nasdaq’s SMARTS Market Surveillance will help ensure that Gemini is a rules-based marketplace for all market participants,” he said.
The SMARTS technology will also be used to determine the settlement price for the CBOE bitcoin futures contracts.
Attorney General Schneiderman had asked exchanges to highlight measures they were taking to prevent market manipulation among a raft of other questions. Others touched on anti-money laundering controls and security measures to protect customer funds.
“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,” Valerie Bannert-Thurner, Senior Vice President and Head of Risk & Surveillance Solutions at Nasdaq.said.
Gemini is regulated by the New York State Department of Financial Services. “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,” Bannert-Thurner said.
Nasdaq’s surveillance technology is deployed in over 45 marketplaces, used by 17 regulators and over 140 market participants.
According to the company, the technology helps cut cost and increase efficiency by automating the detection, investigation and analysis of abusive or disorderly trading.