The Commodity Futures Trading Commission (CFTC) is deploying Nasdaq’s suite of surveillance technology to enhance its market surveillance and fraud detection capabilities.
Nasdaq’s Market Surveillance platform is the most widely used market surveillance technology globally, serving over 50 exchanges and 20 international regulators. Further, it will support CFTC’s mission to promote market integrity.
“As our markets continue to evolve and integrate new technology, it’s critical that the CFTC stays ahead of the curve,” CFTC Acting Chairman Caroline Pham said. “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. This new suite of solutions will also improve efficiency in analyzing market trends and identifying unusual or disruptive trading activity so that our lean and talented staff can take appropriate action more quickly. 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 platform allows regulators to identify potential manipulation patterns spanning multiple asset classes, conduct detailed transaction-level analysis, and generate automated alerts across products and trading venues. In addition, the platform’s flexible architecture delivers a unified view of market activity with granular data insights along with the ability to scale rapidly through periods of heightened volume and volatility. This includes access to data to support real-time analysis and decision-making, which is critical frontier to prevent and detect market abuse.
“Today’s financial markets demand advanced surveillance technology that can adapt to rapid regulatory evolution and emerging asset classes,” Tal Cohen, president at Nasdaq, said. “As both an owner and operator of heavily regulated markets, as well as a technology provider to financial services companies worldwide, Nasdaq occupies a unique position at the intersection of innovation and regulation. We’re proud to partner with the CFTC and support their mission to promote the integrity, resilience, and vibrancy of U.S. derivatives markets.”
The CFTC is responsible for overseeing a wide array of dynamic and growing derivatives markets ranging from fixed income, commodities and currencies, crypto assets, and event-based markets.