The aim of the collaboration is to bring a regulated crypto 2.0 futures-type contract to the market. Representatives of the companies mentioned that these futures products could be thought of as upgrades to current regulatory standards that surround bitcoin futures products.
The Commodity Futures Trading Commission (CFTC) has already approved two bitcoin futures products to date, namely one operated by the Chicago Board Options Exchange in partnership with Gemini Exchange, and the second one operated by the Chicago Mercantile Exchange in partnership with Crypto Facilities. The futures contracts are cash-settled, which means that at expiration no physical bitcoins need to be moved in order to settle accounts.
To this partnership, Nasdaq brings its stock markets surveillance system, called SMARTS, and the pricing benchmarks provided by MVIS to inspire confidence with regulators and institutions trying to get involved in the crypto markets. SMARTS is a software hosting hundreds of detection algorithms designed to automatically identify suspicious market activity, including spoofing and wash trading. The technology is meant to ensure bitcoin futures trading in a fair and orderly fashion.
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