Trading Technologies Aims To Monitor Crypto Exchanges & Markets to Prevent Manipulation
A Chicago Trading Company Is Teaming Up With Crypto Exchanges To Prevent Manipulation
Trading Technologies, a firm based in Chicago, has recently announced a new partnership with a group of crypto exchanges to try to finish manipulation on their platforms. Trading Technologies has already worked with Coinbase to let professional clients trade Bitcoin futures, so the company is not necessarily new to the crypto space.
The main company partner of the company in this new enterprise will be Coinfloor, a company from the United Kingdom. The firm will use the Score technology of Trading Technologies, a program invented to monitor the markets for any kind of unusual activity including manipulation.
Score also uses machine learning technology to adapt to new practices and find ways to discover people abusing the system. Score is also used by prop traders, brokers, hedge funds and other institutions that deal with the financial market.
Score Will Help To Prevent Manipulation
According to the CEO of Trading Technologies, Rick Lane, a partnership could draw more professional investors to the crypto space because they could trust the environment more.
According to him, Coinfloor could use the Score technology to ensure that the integrity of its market and this could bring the people that the exchanges are more interested in: the institutional and professional traders.
Crypto Exchanges Are Taking Manipulation More Seriously
Times are really changing in the market as it is becoming increasingly more regulated. As new players are entering this industry, manipulation is becoming a concern of more companies. Coinbase, as reported, is already using Trading Technologies to build new ways to supervise trading.
Another exchange, Femini, is using Nasdaq’s Smarts, a type of surveillance technology that has been used widely among Wall Street companies and it looks for criminal user behavior.
Cases of manipulation in the industry are not hard to find. While Kraken denies it, there were more than 50,000 red flags in Bitcoin trades made on the company recently and there is a study that believes that Tether was used to manipulate the price of Bitcoin last year and take it to $20,000 USD.