Key Takeaways
- The agency confirmed that Nasdaq’s platform will provide automated alerts, cross-market analytics, and tools designed to detect manipulation, fraud, and disruptive trading patterns.
- According to Acting Chairman Caroline D. Pham, the technology will improve efficiency across the CFTC’s divisions and allow staff to take action more quickly when unusual activity emerges.
The US Commodity Futures Trading Commission(CFTC) has moved to bolster its market oversight by deploying Nasdaq’s market surveillance technology, marking a shift away from its outdated 1990s-era system.
In its press release, the regulator confirmed that Nasdaq’s platform will provide automated alerts, cross-market analytics, and tools designed to detect manipulation, fraud, and disruptive trading patterns. As per Acting Chairman Caroline D. Pham, the technology will improve efficiency across the CFTC’s divisions and allow staff to take action more quickly when unusual activity emerges. She emphasized that adopting a modern surveillance framework is essential to keeping pace with evolving financial markets.
Nasdaq described the surveillance suite as the most widely used globally, currently serving over 50 exchanges and more than 20 regulators. The system provides integrated monitoring across asset classes and delivers access to order book data, enabling transaction-level analysis in real time.
Tal Cohen, President at Nasdaq, noted that today’s financial markets require adaptive surveillance that can handle rapid regulatory shifts and the rise of new asset classes.
The CFTC’s stressed that its adoption of Nasdaq’s system follows Pham’s pledge earlier this year to modernise the agency’s surveillance infrastructure. The move also aligns with the regulator’s efforts to strengthen oversight of digital assets, including its “crypto sprint” initiative, which responds to White House recommendations on regulating the sector.
The White House report recommended that the US Treasury Department, along with the National Institute of Standards and Technology (NIST), develop additional “know-your-customer” parameters for crypto exchanges.
