LedgerX Implements Market Surveillance

LedgerX is a trading and clearing platform exchange dealing with bitcoin. The company is currently seeking regulatory approval from the US Commodity Futures Trading Commission (CFTC) to start publicly operating. If approved, LedgerX will be the first federally regulated bitcoin exchange and clearing house to list bitcoin options for the institutional market.

The LedgerX management team comprises Goldman Sachs, MIT and CFTC alumni, and financial expertise with the know-how of its early investors, which includes Google Ventures and LightSpeed Ventures.

LedgerX has recently announced it was implementing a platform service that will enable the company to closely monitor the exchange for suspicious trading behavior and market manipulation tendencies. Ancoa was the selected platform to perform this task. Ancoa already has experience in this field, serving the Zagreb stock exchange, a Croatian equities marketplace. Zagreb lists almost 300 financial instruments and has been leading the development of capital markets in the region for almost 25 years.

Ancoa is a specialized and experienced market surveillance provider that has designed a platform enabling exchanges and stock markets to close monitor trading activities over their trading platforms. The company’s software provides an excellent quality solution when comes to try and achieve every regulatory demand made from the institutions in charge.

Ancoa software enables exchanges to have access to flexible query features tied up to high speed, high volume analytics tools. Additionally, monitoring and actionable on time alerts helps firms take full control of their regulatory, reputational, and operational risks across markets.

The market surveillance provider platform provides a real-time optimized solution for monitoring, analytics, alerting, and reporting, using powerful visualization tools, and enabling companies to identify and manage potential risks of market abuse.

LedgerX representatives consider comprehensive market and trade surveillance capabilities as integral to operating a regulated exchange, requiring an agile surveillance system built on the latest technology. The Ancoa platform is capable of delivering the needed surveillance to ensure a fair bitcoin options marketplace. LedgerX is now using Ancoa to provide the first real-time market and trade surveillance platform for monitoring bitcoin options trading on LedgerX. By using this monitoring platform, LedgerX will be able to instantaneously identify and investigate manipulative behaviors and suspicious trading practices on its own exchange, across other derivatives exchanges and across the multitude of bitcoin spot markets.

There is clear regulatory demand for greater transparency and investor protection in bitcoin markets. LedgerX’s best-in-class technology and innovative products, paired with our surveillance capabilities, will support LedgerX’s goal of running a robust, federally regulated bitcoin options exchange and clearing house.

With this move, not only bitcoin will be entering the world market exchanges as it will also mark the beginning of a new period for digital currency. Regulatory pressure on crytocurrency financial markets will likely lead to most crypto exchanges adopting this kind of protective market surveillance.

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