Thomas Daniels
The U.S. Commodity Futures Trading Commission (CFTC) is undertaking a major modernization of its outdated 1990s surveillance infrastructure by integrating Nasdaq’s advanced Market Surveillance platform. This strategic move marks a significant upgrade in the agency’s capacity to oversee derivatives and digital asset markets.
Nasdaq’s monitoring technology enables real-time detection of market abuse, including insider trading and manipulation, across both traditional equities and cryptocurrency markets. According to Tony Sio, Head of Regulatory Strategy and Innovation at Nasdaq, “Tailored algorithms detect suspicious patterns unique to digital asset markets. It offers real-time analysis of order book data across crypto trading venues and cross-market analytics that can correlate activities between traditional and digital asset markets.”
The CFTC will utilize its regulatory authority to source the data fed into the new monitoring system. This move signals the agency’s commitment to replacing outdated tools with sophisticated technologies to detect fraudulent and manipulative behavior more effectively.
For the first time, the CFTC will gain access to automated alerts and comprehensive cross-market analytics, enabling all operating divisions to respond faster and more accurately to abnormal market activity.
Nasdaq’s Market Surveillance system is already deployed across more than 50 global exchanges and is trusted by over 20 international regulators. Its scalable infrastructure supports real-time data ingestion, granular transaction analysis, and swift responsiveness during volatile periods—ideal for overseeing both traditional and digital assets.
This modernization aligns with broader federal efforts, including the CFTC’s “Crypto Sprint” initiative and recommendations from the President’s Working Group on Digital Assets, which aim to clarify and strengthen oversight of the rapidly evolving crypto sector.
