Crypto Startup Bcause Will Use Nasdaq’s Trading Surveillance Technology

Signage is displayed inside the Nasdaq MarketSite in New York, U.S., on Thursday, Aug. 18, 2016. U.S. stocks fluctuated as investors weighed near-record equity levels, and indications an uncertain economic outlook leaves policy makers with little reason to raise interest rates. Photographer: Eric Thayer/Bloomberg

The cryptocurrency startup Bcause LLC has decided to use Nasdaq’s technology to improve its market, trading and clearing surveillance. The information was announced on March 13 by the company in a press release. In this way, the firm will monitor its markets for manipulative activities.

Bcause Starts Using Nasdaq’s Technology

Bcause markets will be operating on top of the Nasdaq matching engine, clearing and market surveillance technology through the Nasdaq Financial Framework platform. The technology is expected to go live as soon as the first half of 2019.

Bcause has also decided to file with the U.S. Commodity Futures Trading Commission (CFTC) to become a designated contract market (DCM). The startup will become the only venue that works as a one-stop shop for all parts of the crypto value chain.

The CEO of Bcause, Fred Grede, said that the crypto spot market will be attracting a large range of users. He included financial investors and also smaller crypto enthusiasts.

The Senior Vice President and Head of Marketplace Operators & New Markets at Nasdaq, Paul McKeown, commented about it:

“By leveraging the Nasdaq Financial Framework, Bcause will have the scalability and modular functionality to introduce new micro-services and expand its business offerings to meet industry demands and the evolution of the digital asset economy.”

There are seven virtual currency exchanges that were using Nasdaq’s monitoring technology. The Winklevoss twins, who operate the Gemini exchange, are working with Nasdaq as well.

In order for the cryptocurrency market to become more mature, it is necessary for companies to have clear control over irregular activities in their platforms. With Nasdaq’s technology, it is possible for companies to understand whether there are individuals laundering money or manipulating the markets.

Digital currencies have been expanding all over the world but the infrastructure remained behind. Institutional investors did not enter the market as many expected in the past. The main reason is the fact that many things must be enhanced before institutions enter the space.

There are other firms such as the Intercontinental Exchange (ICE) and Fidelity Digital Assets that are working in order to offer services to institutional clients. Both companies are building platforms specifically designed for larger traders such as family offices, pension funds or financial institutions from different countries. This will allow the digital currency market to keep growing in the near future.

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