The Nasdaq Market Surveillance platform has been tasked with the integrated monitoring of CFTC markets.
The Commodity Futures Trading Commission (CFTC) is deploying a suite of surveillance technology services from exchanges and technology provider Nasdaq to improve the regulator’s market surveillance and fraud detection capabilities, officials say.
The Nasdaq Market Surveillance platform will enable integrated monitoring across CFTC markets and will facilitate surveillance capabilities to maintain the integrity of derivative markets, officials say. The surveillance technology will provide analytics and fraud detection across traditional and digital asset classes.
“As the CFTC embraces an expanding regulatory remit, Nasdaq’s Market Surveillance platform will support the agency’s mission to promote market integrity,” according to the recent announcement. “The upgraded technological capabilities follow CFTC Acting Chairman Caroline D. Pham’s pledge in March to secure an enhanced market surveillance system as part of a broader effort to modernize the agency and replace the CFTC’s ‘90s-era legacy system.”
“As our markets continue to evolve and integrate new technology, it’s critical that the CFTC stays ahead of the curve,” Pham says in a prepared statement. “Nasdaq Market Surveillance will, for the first time, provide the CFTC with automated alerts and cross-market analytics that will benefit each of the CFTC’s operating divisions and better protect our markets from fraud, manipulation and abuse.”
The new suite will improve the efficiency in identifying market trends and unusual or disruptive trading activity so that CFTC staff “can take appropriate action more quickly,” Pham says. “It’s the latest example of our work in recent months to bring about the transformation and optimization necessary to make the CFTC a 21st-century regulator.”
The Nasdaq Market Surveillance platform serves more than 50 exchanges and 20 international regulators, officials say.
Need a Reprint?