CFTC Introduces New Market Monitoring System in Collaboration with Nasdaq
The Commodity Futures Trading Commission (CFTC) is set to modernise its approach to financial regulation, as it adopts Nasdaq's market surveillance platform. This move is part of the CFTC's efforts to become a 21st-century regulator, according to its Chairman, Rostin Behnam, who goes by Pham.
Pham stated that the adoption of Nasdaq's system is not just about digital assets, but about reshaping the CFTC for today's financial environment. The platform, known for its ability to track manipulation across different markets and generate automated alerts, will help the CFTC staff identify unusual trading behaviours.
Nasdaq's surveillance platform is already in use by more than 50 global exchanges and 20 international regulators. The CFTC plans to utilise Nasdaq's suite of tools for fraud detection and market oversight. The international exchange that has long collaborated with Nasdaq's digital asset surveillance technology and is currently assisting the CFTC with its modernization is the Chicago Board Options Exchange (Cboe).
The new system will allow the CFTC to analyse patterns across multiple asset classes, enabling the regulator to respond more quickly to potential misconduct. The CFTC considers Nasdaq's market surveillance platform a key component to its success in derivatives regulation.
Pham described the CFTC's recent efforts as aimed at bringing about transformation and optimisation to make the CFTC a 21st-century regulator. The new system is expected to play a significant role in this transformation, providing the CFTC with the tools it needs to effectively regulate the complex and rapidly evolving financial markets of the 21st century.
