- CFTC adopts Nasdaq surveillance platform to overhaul crypto and derivatives market.
- Nasdaq technology would provide regulators with real-time alerts and cross-market analytics.
- The system prepares CFTC for expanded crypto authority under the proposed Clarity Act.
The U.S. Commodity Futures Trading Commission (CFTC) has deployed Nasdaq’s Market Surveillance platform to strengthen its oversight of derivatives and digital asset markets. The upgrade replaces a monitoring system that dated back to the 1990s. Officials said the new platform will provide real-time alerts and cross-market analytics, enhancing the agency’s ability to detect fraud, manipulation, and disruptive trading.
Acting Chairman Caroline D. Pham said the adoption of Nasdaq’s technology marks a critical step in transforming the CFTC into a modern regulator. Pham noted
“Markets continue to evolve and integrate new technology. It is essential that the CFTC stays ahead of the curve”
CFTC Modernizes Market Oversight with Nasdaq Technology
The adoption of Nasdaq’s platform follows Pham’s March pledge to secure a stronger surveillance system. The CFTC said the new technology will improve efficiency in analyzing market activity and identifying unusual trades.
Nasdaq Market Surveillance provides automated alerts, transaction-level analysis, and scalability during active trading. The software allows regulators to identify suspicious activity across asset classes, which include commodities, currencies, and crypto assets.
Nasdaq President Tal Cohen emphasized the importance of collaboration, stating that the financial markets needed innovative technology capable of keeping up with new asset classes and quick changes in regulations. He added that Nasdaq is determined to work with the CFTC in its mission to keep U.S. markets resilient and fair.
Growing Role of CFTC
The CFTC has taken steps to prepare for broader authority in cryptocurrency oversight. Earlier this month, the agency launched its “Crypto Sprint” initiative to review futures trading and address recommendations from the President’s Working Group on Digital Asset Markets.
Congress is considering the Clarity Act, a bill that would grant the CFTC exclusive jurisdiction over blockchain-based commodities. If passed, the legislation would expand registration and reporting requirements for digital commodity exchanges and brokers. The Commission said Nasdaq’s system will help it meet these potential new responsibilities.
Officials emphasized that the platform provides access to detailed order book data and supports real-time analysis of crypto market activity. This feature is regarded as a key to avoiding wash trading, price manipulation, and other types of abuse on digital asset markets, which operate continuously and can change quickly.
Related: CFTC Expands Oversight in Digital Asset Market Sprint
Global Market Surveillance
More than 50 exchanges and 20 regulators worldwide are already using Nasdaq Market Surveillance technology. The system combines the information of multiple trading venues, giving one a comprehensive view of market activity globally.
To the CFTC, the adoption is modernization, and it keeps up with international best practices. As prediction markets and decentralized finance grow, regulators face mounting challenges in safeguarding market integrity. The new platform offers scalable monitoring to address risks across traditional derivatives and fast-developing digital markets.
According to financial analysts, the decision highlights the increased pressure on U.S. regulators. Legacy systems have become inadequate with the entry of new financial products into the market, constant trading, and decentralized exchanges. The CFTC’s use of the Nasdaq platform indicates its desire to increase its enforcement and readiness to play a bigger role in regulating crypto markets.
