Gemini, the cryptocurrency exchange with Cameron and Tyler Winklevoss at its head, announced it had partnered with Nasdaq to monitor markets April 25. The news comes on the same day as Adena Friedman, the CEO of Nasdaq, said that the company is “open” to becoming a cryptocurrency exchange platform once the market matures.
As a press release and multiple media outlets confirm, the move represents a first for exchange operator in the crypto sector, and will see Gemini use NASDAQ’s SMARTS Market Surveillance Technology.
Going forward, Gemini will be alerted to unusual trading behavior and could mitigate the effects of market manipulation - a threat which continues to form a talking point in the exchange industry.
“Our deployment of Nasdaq's SMARTS Market Surveillance will help ensure that Gemini is a rules-based marketplace for all market participants,” Tyler Winklevoss commented on the partnership.
SMARTS “automates the detection, investigation and analysis of potentially abusive or disorderly trading,” as NASDAQ describes its technology, and is currently in use by 45 marketplaces, 17 regulators and over 140 market participants.
Earlier this month, Gemini moved into large-scale cryptocurrency volume exchange when it unveiled so-called block trading for its users.
Occurring off-book, large trades will be deliberately published with a ten-minute delay in order to avoid localized volatility.
Various over-the-counter exchanges both inside and outside the US are also attempting to hook wholesale traders.