Institutional cryptocurrency exchange Coinfloor will implement machine learning technology for market surveillance on its exchanges from financial services giant Trading Technologies (TT).
The technology, known as TT Score, will be deployed across Coinfloor’s exchanges, including its crypto futures and spot exchange CoinfloorEX, to oversee all market behaviour and identify potentially manipulative activity.
TT will also provide its clients with global access to CoinfloorEX through its crypto trading platform as of the third quarter this year. Both firms said the partnership represents the first time a crypto exchange has used machine learning technology for market surveillance.
“There is strong demand for an alternative to cash-settled crypto futures from market participants. CoinfloorEX’s connection to the TT and TT Crypto trading platforms is an excellent opportunity for professional traders and institutions to frictionlessly access the first and only physically delivered crypto futures exchange in the market today,” said Coinfloor’s chief executive, Obi Nwosu.
“Coinfloor’s brand promise is founded upon trust, reliability and security. We are proud to be first-in-market with TT Score’s artificial intelligence surveillance, enabling us to continue to assure our clients that our group of exchanges value and demonstrate transparency in a preemptively compliant environment.”
Earlier this year, TT launch its crypto trading platform through a partnership with Coinbase which aimed to offer institutional investors exposure and market access to cryptocurrencies.
Clients of TT can trade both spot and derivative markets side-by-side, as well as view market data, submit orders and use the firm’s automated trading tools to trade cryptocurrencies on Coinbase’s global digital asset exchange (GDAX).
“We anticipate Coinfloor’s use of TT Score to help ensure market integrity coupled with our forthcoming connection to the CoinfloorEX marketplace will drive additional market participation by institutional and professional traders,” added Rick Lane, CEO at TT.
A recent report from Aite Group suggests that the successful launch of Bitcoin futures and other cryptocurrency derivative products are helping institutional players better manage their risks. At the same time, the emergence of institutional trading platforms, particularly those established by incumbent financial technology providers, will drive up institutional adoption.
Gabriel Wang, analyst and author of the report, told The TRADE Crypto that he expects more incumbent financial technology provider to begin providing access to crypto markets, like Trading Technologies has.
“While start-up companies in the crypto space are emerging and trying to fit themselves into the ecosystem and solve part of the puzzle, incumbent firms, especially those who already have capabilities in traditional asset classes, will continue to get into the cryptocurrencies markets and serve the institutional community,” he said.