Nasdaq, the world’s second largest stock exchange with a market capitalization of over $10 trillion, and Bcause LLC, the developer of the very first “full-stack cryptocurrency ecosystem” have announced that Bcause will use Nasdaq’s proprietary order matching engine.
Bcause’s markets will also utilize Nasdaq’s clearing and “market surveillance” technology through the Nasdaq Financial Framework platform. As mentioned in the announcement’s press release, the proprietary digital asset technology platform has been scheduled to launch during the first half of this year. Bcause’s spot cryptocurrency market is also set to launch during H1 2019.
Notably, Bcause has filed an application with the US Commodity Futures Trading Commission (CFTC) to “become a designated contract market (DCM).” Bcause is also seeking approval from the federal regulator to open a “derivatives clearing organization (DCO).”
Bcause's Platform And Nasdaq's Inrastructure Form "One-Stop Shop"
Bcause’s full-stack cryptocurrency platform and its related market offerings are expected to operate on Nasdaq’s infrastructure technology and “serve as a one-stop shop for all parts” of the digital assets value chain. This includes a highly efficient crypto mining facility established in February 2018, a spot trading desk for cryptoassets, and a “futures market and a derivatives clearinghouse.” As explained, Bcause is in the process of obtaining regulatory approval before offering these services and products.
As noted in the press release, Nasdaq’s surveillance technology has been developed “to ensure that surveillance protocols fit the needs of a crypto marketplace.” Bcause’s management will use the surveillance tools to monitor trading on the platform and help prevent exploitative activities such as market manipulation.
Commenting on the initiative, Fred Grede, the CEO at Bcause, remarked:
We have tremendous respect for the Nasdaq brand and are honored that we can deploy these robust, tried-and-tested platforms – customized to our unique markets – as the foundation of our technology. I fully expect that our markets will attract a broad range of users, from those who are already quite active in the financial markets and familiar with Nasdaq technology, to a new breed of investors wanting to participate in the growing cryptocurrency marketplace.
Meanwhile, Paul McKeown, the senior vice president and head of marketplace operators at Nasdaq, said:
Bcause has methodically built a unique ecosystem that gives investors, partners and market players a holistic experience in tapping the cryptocurrency market and value chain.
McKeown added that by leveraging the Nasdaq Financial Framework, Bcause will be able to take advantage of the “scalability and modular functionality to introduce new micro-services.” This will allow the trading firm to further expand its product offerings in order to meet industry requirements - while supporting “the evolution of the digital assets economy,” McKeown noted.
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