asdaq is expanding its market technology to the sports betting industry, as Philadelphia-based fintech company Sporttrade Inc. will now be able to use its software to oversee its sports betting platform, announced both companies on Tuesday.
According to a Sporttrade press release, leveraging Nasdaq technology for its sports betting and trading platform will support the company’s efforts in building “a fair, transparent and safe” marketplace with robust surveillance processes.
The fintech’s open trading marketplace will allow participants to trade sporting events the same way they trade stocks, with tighter spreads, more liquidity, and unique features like “always-on” in-play trading, and the ability to trade in and out of bets at any time.
Trade sports the same way you trade stocks 📈
Learn how work on Sporttrade. pic.twitter.com/USlbzD4XjS
— Sporttrade Inc (@sporttrade_app) August 3, 2021
“Through this agreement, Sporttrade will apply exchange-grade technology in their efforts to uphold integrity in the rapidly evolving sports betting industry,” said Tony Sio, Head of Market Regulatory Technology, Nasdaq.
Sio believes Nasdaq’s expertise in developing and delivering surveillance technology for exchanges, regulators and new types of marketplaces outside of the traditional capital markets will support Sporttrade’s efforts in providing robust surveillance for its marketplace.
By utilizing Nasdaq’s SaaS-deployed market surveillance technology, Sporttrade will be able to monitor trading patterns and protect its user base by identifying irregularities and unusual trading behavior. Nasdaq’s cloud-based software currently powers more than 2,300 companies in 50 countries across the financial industry.
Moreover, interactive visualization will allow the company to distill complex data into a single snapshot, providing a full view of the order book. This will enable Sporttrade to “transparently and continuously” collaborate with regulators.
“Today marks another important step in fulfilling our mission to elevate the sports betting industry with proven capital markets technology that will monitor our platform and protect our user base,” said Alex Kane, Founder and CEO of Sporttrade.
The CEO sees the adoption of Nasdaq’s market surveillance technology as essential to Sporttrade’s promise of advancing “transparent and efficient” open sports betting markets, the main reason behind the company’s foundation in 2018.
The National Council on Problem Gambling congratulated both companies on the partnership. “We are encouraged by Sporttrade’s commitment to corporate social responsibility, leading to more informed customers,” said NCPG Executive Director Keith Whyte.
“By providing customers with win/loss visualizations, promoting limits and leveraging Nasdaq’s market surveillance technology, Sporttrade is taking responsible gaming seriously and putting it at the forefront of its mission,” added Whyte.
Sporttrade’s trading app is set to launch in New Jersey by the end of the year, with additional states to follow in 2022 and beyond. The company claims to be “the first regulated sports betting exchange in U.S. history,” and is led by “an accomplished team” from sports betting and capital markets backgrounds.