24/7 Nasdaq monitoring on crypto and derivatives arrives

The CFTC adopts Nasdaq surveillance technology to transition to real-time monitoring of traditional and digital markets. The announcement, released on August 27, 2025, represents the most extensive update since the 1990s and introduces cross-market correlations between stocks, derivatives, and digital assets, with a deeper scope of analysis; see the official release on the CFTC website.

According to the data collected by our editorial team, the integration of a trading platform like Nasdaq’s allows for the unification of signals from multiple venues and reduces false positives during the initial screening phase. Industry analysts also note that similar systems, used by over 50 exchanges and more than 20 international regulatory authorities, have shown improvements in cross-market correlation and in the speed of alert triage.

The stated goal is to ensure transparency, quicker interventions, and an integrated view of trading flows. An interesting aspect is the ability to pool weak signals from different venues, thus building a unified picture of events.

Why the CFTC Chooses Nasdaq: Objectives and What Changes

The Commodity Futures Trading Commission integrates a surveillance solution based on Nasdaq Market Surveillance technology to strengthen market surveillance on regulated markets and crypto. The transition from legacy infrastructures to a modern suite enables functions previously unavailable on a large scale. In this context, the architecture is designed to support complex analyses without hindering trading activities.

• Real-time analysis of the limit order book across multiple trading venues.
• Cross-asset correlations between stock markets, derivatives, and tokens.
• Automatic detection of anomalous patterns (insider trading, spoofing, wash trading, pump‑and‑dump).
• Scalability and resilience to handle large volumes of data and spikes in volatility.

In this way, the CFTC can prioritize investigations and reduce the time between signal and intervention, without interrupting trading flows. It must be said that reducing informational noise is crucial to focus resources on the most solid signals.

How the Nasdaq Tool Works: Algorithms and Data for Digital Markets

The algorithms are calibrated to the specificities of on-chain markets and centralized exchanges. The system identifies coordinated movements, anomalies in the order sequence, and discrepancies between price levels on different venues, even when volumes are fragmented.

• First-level filters: isolate suspicious activities based on dynamic thresholds (volumes, spreads, speed).
• Second-level analysis: correlate events across multiple markets and connected instruments.
• Human supervision: alerts become dossiers for analysts, who validate relevant cases.

Data Governance and Legal Bases

The information flows stem from the reporting obligations and the supervisory powers of the agency. The CFTC can request information from exchange platforms and define, with each operator, formats and granularity of the feeds in line with the applicable regulations. In this framework, data access and retention protocols are standardized to reduce interpretative ambiguities.

The exact nature of the datasets (live and historical) will be implemented in phases, with periodic audits on quality, latency, and coverage. An interesting aspect is the ability to update detection thresholds based on volatility.

Risks and Challenges: DeFi, Privacy, and Digital Identity

The push towards deeper surveillance raises a heated comparison on DeFi and digital identification. Divergent positions emerge in the public debate:

• Supporters: greater traceability reduces money laundering and manipulations, encouraging the entry of institutional capital.
• Critics: the introduction of KYC/ID credentials in smart contracts could alter the permissionless architecture and compromise user privacy.

The most frequently mentioned technical compromise is zero-knowledge validation or the adoption of hybrid solutions that separate identity verification from sensitive data, maintaining non-custodial access.

Political and Regulatory Context

The move is part of the recommendations published by the White House in July 2025 to strengthen the fight against illicit financial flows, with references to KYC parameters adapted to digital assets and an update of the guidelines on digital recognition. In this context, the convergence between technological standards and compliance requirements remains a sensitive point.

Impact on DeFi and Centralized Exchanges: Scenarios

The adoption of the platform can increase pressure on centralized exchanges (CEX), with greater focus on order spoofing, wash trading, and suspicious listings. In parallel, on‑chain architectures might experience selective forms of attestation.

• CEX: expected more granular data requests and strengthened internal control processes.
• DeFi: probable technical and political resistance; possible opt‑in implementations for advanced features subject to verification.
• Hybrid markets: growth of selective gate for institutional services, with non-intrusive identity verification pathways.

For a broader view on the regulatory theme, check out our content on DeFi and crypto regulation.

Manipulation Indicators: Recent Trends

Independent reports published between 2022 and 2024 have highlighted the growth of tokens with a strong speculative component and a recurring use of pump‑and‑dump schemes. For example, according to an analysis by Chainalysis in 2024, a significant portion of ERC‑20 tokens listed on DEX in 2023 exhibited characteristics attributable to pump‑and‑dump schemes, although they represented a small fraction of the total trading volume on DEX.

• Recurring examples: coordinated volume spikes on illiquid pairs, flash orders and immediate removal, divergences between venues.
• Operational objective: reduce detection time, initiate clarification requests, and strengthen traceability of conduct.

What Changes for Investors

Surveillance does not directly modify retail strategies, but it provides regulators with more precise identification tools to sanction illicit conduct and increase the overall transparency of the markets. In other words, the intervention remains downstream of abusive behaviors, not on portfolio management.

Operational FAQ

How will the alerts be used? The alerts generated by the system are compiled into case files analyzed by human teams; only validated cases lead to formal actions. In this sense, automation is a support, not a replacement.

What data flows into the platform? The order-book feeds, trade data, consolidated market data, and, when applicable, information requested from operators based on regulatory obligations. In some cases, historical datasets are used to train thresholds and models.

Will there be blackouts or delays? The design aims to ensure resilience and redundancy; any latencies are tracked and corrected during the tuning phase. It should be noted that the residual latency is subject to continuous monitoring.