Gemini, the Winklevoss scholarship, announced a partnership with Nasdaq to use its technology to monitor all trading pairs on the cryptocurrency market.
With the new agreement, Gemini will implement Nasdaq’s supervisory technology called SMARTS for increased oversight of its trading features and all trading pairs including BTC-USD, ETH-USD, and BTC-ETH, Gemini said in a statement.
Furthermore, surveillance technology will also be used to oversee the Gemini bidding process where the collected data is used by CFE Exchange from Cboe to determine the settlement price for Bitcoin futures contracts.
The technology will allow real-time monitoring of Bitcoin and Ethereum trade in the Gemini market to determine and mark unusual trading patterns. “SMARTS is used by some of the world’s largest stock exchanges, including Exchange Intercontinental (ICE) and Hong Kong Exchange and Clearing Ltd.”
Gemini President and Co-Founder Cameron Winklevoss replied in a statement with the Wall Street Journal:
We do this because we believe in the importance of creating a rule-based market. We think this is where things are going.
Gemini believes that Nasdaq’s SMARTS is “the most widespread surveillance system in the world,” emphasizing that its implementation will continue to contribute to building a “Rule-Based Market” at a time when regulators and authorities, especially in New York, the cryptocurrency exchange operations.
At the same time, Nasdaq spoke about integrating its technology into “Non-Traditional Markets,” such as shifting exchanges that are now compliant with the regulatory standards imposed on Wall Street Companies.
Being governed by the New York State Department of Financial Services (NYSDFS), Gemini is kept to the highest standards regarding capital requirements, said Nasdaq Vice-President Valerie Bannert-Thurner.
That is a significant milestone in SMARTS application and an important indicator of our commitment to expanding the use of our market technology on non-traditional markets as well as new frontiers beyond capital markets.
Gemini, operating in New York state as a fiduciary without the “BitLicense” state mandate, was one of the 13 cryptocurrency trading platforms, named in a transparency investigation by New York lawyer Eric Schneiderman.