Exchange Surveillance

Exchange surveillance is the set of systems and processes used by trading platforms to monitor market activity for signs of abuse, manipulation, or illegal behavior. These systems analyze order book data, trade history, and user behavior in real-time to detect patterns such as spoofing, wash trading, and front-running.

Effective surveillance is crucial for maintaining market integrity and protecting users, especially in the relatively nascent and volatile crypto market. Exchanges that invest in robust surveillance are generally viewed as more trustworthy and are more likely to comply with future regulatory requirements.

Surveillance teams use sophisticated algorithms and machine learning to flag suspicious activity, which can then be investigated and acted upon, including the suspension of accounts or the reporting of incidents to authorities.