will launch two new indices tracking prices on Feb. 25, the company announced in an update to its on Feb. 12.
The indices — the Liquid Index (BLX) and the Liquid Index (ELX) — will offer real-time price updates in thirty-second intervals for clients using NASDAQ’s .
In January, CEO Adena Friedman tostate her belief that could become a major world currency in future.” —
Essentially, Nasdaq is launching the and Indices (like the Dow Jones index) which get pricing information from different exchanges (7 so far, according to multiple sources).
“ exchanges that want to use Nasdaq’s proprietary surveillance technology need to have more than money.
A team of about 20 people contribute to an elaborate due-diligence process aimed at ensuring that any exchange that wants to use the technology, which scans for fraudulent transaction patterns, is technically capable and morally inclined to use the powerful software wisely.
Exchanges that pass the test (and can foot the bill) will be granted access to the same surveillance technology Nasdaq uses to verify to its clients that volume is as free from fraud and manipulation as possible.
Seven exchanges have passed Nasdaq’s muster so far, according to a Nasdaq representative speaking with Forbes, though only two, Gemini and SBI Virtual Currency, were mentioned by name. As more exchanges seek to lure new , Nasdaq’s technology is already being used to attract institutions and traders accustomed to more mainstream venues.” —
Although Nasdaq’s two new indices are not investment products, “NASDAQ’s interest and decisions to feature information about further normalizes and could help spur institutional investors to explore this new market. It’s a small step that legitimizes the sector.” —
Anything that legitimizes the Crypto sector is extremely bullish in my view. “ Currently, firms like VanEck, Bitwise, and the Chicago Board Options Exchange (CBOE) are to release the first in the U.S. market.
As CCN earlier this week, Hwang Hyeon-cheol, a former Citi and Allianz executive, said that the market still does not have a stable level of liquidity and market size for both institutional and retail investors.
Most investment vehicles that are pending approval in the U.S. are targeted at retail investors, and for their success, large liquidity and a reliable source of price is key.
Analysts expect Nasdaq’s indices to operate as the main source of crypto prices throughout the years to come, opening the door for various investment tools.” —
Because Nasdaq is only using a select few of the total Crypto exchanges available, the exchanges it does choose to use will likely be seen as legitimate. All exchange activity will be monitored.
“Tony Sio, Nasdaq’s head of exchange and regulator surveillance, presented a detailed overview of how the company vets its crypto exchange clients, broken down in to three categories: Business Model, KYC/AML, and Exchange Governance & Controls.” —
Perhaps the Indices Monday launch has ignited some interest. “As prices went up, so did the daily volume. According to market metrics presented on , daily crypto volume reached a 300-day high of $33.85 billion on February 19, signaling the highest level of volume seen in 10 months.” —
Yes, that’s Deadpool riding a rocket. It’s funny!
Moonshot engaged. Bye Bye Bears!
Published at Sun, 24 Feb 2019 03:26:50 +0000
