Bitfinex Deploys Surveillance Tool to Curb Market ‘Abuse’

Bitfinex, a major digital currency exchange, announced on Tuesday the deployment of a proprietary surveillance tool to combat market abuse on the crypto trading.

Dubbed Shimmer, the tool will help the exchange to identify and investigate possible manipulative behaviors and suspicious trading practices on the exchange. This, according to the exchange, will improve market integrity and visibility.

Commenting on the new tool, Paolo Ardoino, CTO at Bitfinex, said: “Comprehensive market and trade surveillance capabilities are integral to operating a leading cryptocurrency exchange. To meet the complex needs of an evolving digital asset class and to protect our sophisticated participants, Bitfinex has chosen to develop its own state-of-the-art surveillance system. This will help to assure that potentially manipulative practices are rooted out and suspicious behaviour detected.”

Assuring safety to high-volume investors

The market alert and reporting features are operating on Hive, the crypto exchange’s match processing engine, and will send alerts on any trading suspicion on any pair listed on the platform.

The exchange also detailed that the tool will be more useful for its futures and margin trading services and is expecting an influx of institutional investors with it.

“This tool is especially relevant for our futures and margin funding products,” Ardoino added. “We chose to use the Rust programming language for its Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term speed and programming safety. The Rust package manager and ecosystem allowed us to be up and running with a workable market detection tool in a short time frame.”

Though Bitfinex developed its proprietary surveillance tool, the exchange is already using Chainalysis’ know-your-customer (KYT) solution for alerts on suspicious transactions. Tether, Bitfinex’s sister platform, is also using KYT to prevent manipulation of its Stablecoin Stablecoin Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Read this Term.

This came when the exchange is facing allegations of market manipulation and also lost hundreds of millions to its payment processor Crypto Capital.