Nasdaq, VanEck Tie Up For Advanced Crypto Products

Nov 28, 2018 at 21:45

Nasdaq has partnered with VanEck to produce a number of crypto financial products, including “a regulated crypto 2.0 futures-type contract.”

The partnership was announced during CoinDesk’s Consensus: Invest conference, by Gabor Gurbacs, VanEck’s director of digital asset strategy who hinted that these products may emerge as early as the first quarter of 2019.

Gurbacs said the release early next year will see the rollout of the first of several batches.

“What I’d like to point out is we ran a few extra miles working with the [Commodity Futures Trading Commission] to bring about new standards for custody and surveillance,” he was quoted by CoinDesk as saying in a panel discussion.

Gurbacs said these futures products are an “upgrade” to current standards put in place to regulate bitcoin futures products.

The partnership will maximize Nasdaq’s stock markets surveillance system, known as SMARTS, as well as the trusted pricing benchmarks offered by MVIS.

SMARTS is a software that hosts detection algorithms which are designed to automatically detect suspicious market trading activities such as spoofing and wash trading, ensuring bitcoin futures are traded “in a fair and orderly fashion.”

With these features, the crypto products to be created could “inspire confidence with regulators and institutions trying to get involved [in the crypto markets],” Gurbacs said.

To date, the Commodity Futures Trading Commission has approved two bitcoin futures products: one operated by the Chicago Board Options Exchange in partnership with Gemini Exchange and the other operated by the Chicago Mercantile Exchange in partnership with Crypto Facilities.