Bcause has scored a huge coup by partnering with Nasdaq to deploy their matching engine, clearing, and market surveillance technology, as announced on the Nasdaq website, March 13, 2019. Once they receive derivatives trading and clearing approval from the CTFC, they will be the only firm in the world to be involved in all levels of the crypto value system.
Over the past few years, Nasdaq has openly shown its commitment to cryptocurrencies. In February 2019, they announced that they would be adding bitcoin and Ethereum indices to their platform and in December 2018, they made an investment in ErisX.
Now, their technology will be put to use in helping Bcause, a crypto trading firm. It was announced On March 13, 2019, that Bcause, the creator of the world’s first full-stack cryptocurrency ecosystem, would be making use of NASDAQ’s matching engine, clearing and market surveillance technology via the Nasdaq Financial Framework platform.
According to the press release, Bcause will begin using the technology in the first half of 2019 when they debut their Bcause spot cryptocurrency market. On top of this, they have made an application with the Commodity Futures Trading Commission (CFTC) to become a Designated Contract Market (DCM) and to establish a Derivatives Clearing Organization (DCO).
This is very significant as when derivatives trading and clearing begin, Bcause will officially be the only firm in the world that offers services at all stages of the cryptocurrency value system. This will include crypto mining, spot trading, derivatives clearing, and trading and so on.
The surveillance technology being offered by Nasdaq is a huge boost because it will ensure that the surveillance protocols in use properly fit the needs of the crypto market. On top of this, they will be able to detect manipulative activities, which will make trading more transparent and are for all involved.
Fred Grede, the CEO of Bcause, remarked in the press release that his company is honored to have access to this technology. He also pointed out that this will help attract different classes of investors; those that are already involved in the financial market and are familiar with Nasdaq operations and those that would be interested in joining the crypto market.
Paul McKeown, the SVP and Head of Marketplace Operators & New Markets, Market Technology 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,”
He also added that the use of Nasdaq technology will help improve on their scalability and modular functionality which will help them meet the evolving needs of the digital asset economy.