Michaela
Summary: Why is the CFTC using Nasdaq surveillance technology?
The CFTC is using Nasdaq surveillance technology to improve fraud detection and monitor trading more effectively. The platform provides automated alerts and cross-market analytics to flag unusual activity across multiple asset classes. This upgrade helps the CFTC respond faster and strengthen the integrity of U.S. markets.
The Commodity Futures Trading Commission (CFTC) has announced it has begun using Nasdaq’s advanced surveillance technology to strengthen fraud detection and market monitoring, marking a key step in modernizing its outdated systems.
“As our markets continue to evolve and integrate new technology, it’s critical that the CFTC stays ahead of the curve,” Acting Chairman Caroline Pham stated in a Wednesday press release. Acting Chairman Pham explained that Nasdaq Market Surveillance will equip the CFTC with automated alerts and cross-market analytics, enhancing the agency’s ability to detect and prevent fraud, manipulation, and other abusive practices across all its divisions.
The new technology suite is expected to streamline the analysis of market trends and swiftly flag unusual or disruptive trading activity, enabling CFTC staff to respond more effectively.
“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 CFTC is a leader in derivatives regulation, and Nasdaq’s Market Surveillance platform will be a key component to our success,” Acting Chairman Pham stated.
“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,” Tal Cohen, President at Nasdaq, stated.
Nasdaq Market Surveillance, one of the most widely adopted monitoring systems worldwide, supports more than 50 exchanges and 20 international regulators. With the CFTC overseeing a diverse and expanding derivatives market, including commodities, fixed income, currencies, crypto assets, and event-driven products, the platform is expected to help the Commission detect potential manipulation across asset classes, perform detailed transaction-level analysis, and generate automated alerts across multiple trading venues.
The CFTC’s adoption of Nasdaq’s surveillance technology comes in the wake of recommendations from President Donald Trump’s Working Group on Digital Assets, which advocated for a collaborative regulatory framework. The report proposed that oversight of digital assets be shared between the SEC and CFTC, with the latter responsible for regulating commodity-backed tokens.
The enhanced surveillance capabilities could reshape how market participants approach trading, creating stronger incentives for compliance and fostering a more resilient financial ecosystem.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
