Bitfinex Launches Shimmer, Its Own Trade Surveillance System

News / 24.03.2020

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

Bitfinex is a popular crypto trading platform for integrating the latest innovative tech to deliver high-performance trading solutions to its users.

Paolo Ardoino, CTO at Bitfinex, said on Twitter that Bitfinex has chosen to develop its state-of-the-art surveillance system to meet the complex demand of an evolving digital asset class and to protect our sophisticated participants. 

What is Shimmer?

Launched in 2012, Bitfinex is one of the few names in the crypto industry that hasn’t garnered excessive negative press in terms of platform features and technological prowess

Bitfinex explained Shimmer, which gets its name from a defensive mechanism used by giant honeybees.

Shimmer is a reporting tool and investigates possible manipulative behaviors and dubious trading practices on the exchange, improving market integrity and visibility. It is designed to operate seamlessly with Hive, Bitfinex’s distributed, multi-threaded and multi-process matching engine built around speed, stability, and scalability.

Ardoino noted that Comprehensive market and trade surveillance capabilities are integral to operating a leading cryptocurrency exchange. He added that Shimmer is especially useful for Bitfinex’s futures and margin funding products.

The Surveillance tool works through Rust programming language for the fast processing of voluminous trade and order data.

When Shimmer detects malpractice on the platform, it will alert the Bitfinex team through email summaries of the suspicious trading patterns across all trading pairs listed on the exchange, including futures and margin funding products.

Shimmer is designed to combat improper activities like wash trading, whereby traders buy and sell instruments with the intent of misguiding the market, and layering, where a trader uses non-bona fide orders to mislead others regarding actual supply or demand in the market.

Bitfinex Projects

Just recently, Bitfinex expanded its partnership with Market Synergy to connect brokers, hedge funds, and professional traders to its platform with the launch of a cloud-based VPS (Virtual Private Server) after going live with an institutional caliber connectivity offering in January 2019. 

The technology helps industries to take a FIX feed or ISP link to Bitfinex’s digital asset gateway., Market Synergy also offers colocation services to any Bitfinex institutional client in addition to the cloud-based VPS solution and the institutional connectivity offering.

The developments came when the exchange faces market manipulation allegations and lost hundreds of millions to its payment processor Crypto Capital.

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Wayne is a Blockchain enthusiast and expert in crypto trading. Currently, he covers trendy issues on digital currencies.