Nasdaq Collaborating with VanEck to Launch New Crypto Financial Product

Nov 28, 2018 at 17:00 Update Date :Dec 22, 2018 at 07:41 UTC

Nasdaq, the second largest stock exchange globally is collaborating with VanEck – investment management firm to launch a new crypto financial products in the market.

During the invest conference, the digital asset strategy director of VanEck, Gabor Gurbacs, said that the new move will help in bring a regulated crypto 2.0 futures contracts in the market. Further, while revealing the plans of the firm, he said that the first products will be released at the beginning of next year. He further added:

“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,”

The director, in an interview, told a news outlet that the future products would be a step towards upgrading to current regulatory standards that will cover the BTC futures products. The company’s goal is to inspire confidence in institutions and regulators that are trying to get involved in the cryptocurrency industry. This can be done with the use of Nasdaq’s stock markets surveillance system – SMARTS, and benchmarks provided by MVIS.

SMART – software that is currently hosting over hundred of detection algorithms; designed to find the suspicious activities in the crypto market like wash trading and spoofing.

Gabor Gurbacs called the software as ‘big policeman engine’ because of its security proving nature. He believes that the technology will ensure future trading in BTC more orderly and fairer.

Future Contracts

The Commodity Futures Trading Commission (CFTC), as of now, has approved two major BTC products. The first one is operated by the Chicago Board Options Exchange; being in a partnership with Gemini Exchange. The second one is operated by the Chicago Mercantile Exchange; in collaboration with Crypto Facilities. The future contracts are more settled; that means no BTCs will be moved to settle the accounts.

The director didn’t reveal more details about the futures contracts but he hinted that there is a lot to be done in 2019.  The launch date is expected to be the in the first quarter of next year.

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