Bringing you live news and features since 2006 

Bitcoins

CME Group and Crypto Facilities launch Bitcoin Reference Rate and Real-Time Index

RELATED TOPICS​

CME Group is to collaborate with Crypto Facilities Ltd, a digital assets trading platform, to develop the CME CF Bitcoin Reference Rate (BRR), which will provide a final settlement price in US dollars at 4 pm London time on each trading day, and CME CF Bitcoin Real Time Index (RTI), which will allow users real-time access to bitcoin prices.

Both new products are expected to launch in the fourth quarter of 2016.

The BRR will aggregate the trade flow of major bitcoin spot exchanges during a specific calculation window into a once-a-day, transparent reference rate of the US dollar price of bitcoin.

The RTI will be calculated by Crypto Facilities and will be based on global demand to buy and sell bitcoin aggregated into a consolidated order book. It will reflect the current market price of bitcoin in US dollar terms and will be published approximately once every second.

"These products are designed to allow bitcoin traders, companies and other users to rely on a credible reference rate price source," says Sandra Ro, Executive Director and Digitisation Lead at CME Group. "Delivering innovative products and services that meet the market's evolving needs is at the core of CME Group's business, and we are proud to lead the way for the industry as digital assets develop."

"The availability of robust reference prices with independent oversight is key to the professionalisation of bitcoin trading and further establishes digital assets as a new asset class," says Dr Timo Schlaefer, Crypto Facilities. "We are excited to work with CME Group on the construction and implementation of this reference rate and index."

CME Group, Crypto Facilities and Imperial College London will function as core members of an oversight committee responsible for overseeing the BRR. The oversight committee will develop a code of conduct for participants and regularly review the practices and standards followed in the determination process to protect the BRR's integrity.

"The Imperial College Centre for Cryptocurrency Research and Engineering (IC3RE) welcomes this important step in the further development of the use of cryptocurrency in the derivative markets," says Professor William J Knottenbelt, Imperial College London. "We are delighted to participate on the oversight committee during this transformational time."

Several bitcoin exchanges and trading platforms will provide pricing data upon which the reference prices will be calculated, including Bitfinex, Bitstamp, Coinbase, Genesis Global Trading, itBit and Kraken.

CME Group and Crypto Facilities designed the BRR around the IOSCO Principles for Financial Benchmarks.

Latest News

As the ETF industry reaches a milestone of USD12.71 trillion in global assets, Brown Brothers Harriman writes that its 2024..
Matteo Greco, Research Analyst at Fineqia International writes that bitcoin closed last week at approximately USD66,300, marking a 7.8 per..
HSBC Asset Management’s (HSBC AM) ETF and Indexing business has passed USD100 billion in assets under management (AUM), reflecting its..
Amundi’s ETF Market Flows Analysis for April reveals that investors added EUR54.1 billion to global ETFs in April with equities..

Related Articles

Dan Miller, IQ-EQ
With just over a week to go till T+1 settlement begins in North America, Canada and Mexico, time is of...
Emily Spurling, Nasdaq
Last October’s ETF Express US Awards 2023 found Nasdaq winning Best Index Provider – ESG ETFs and Best Index Provider...
Vinit Srivistava, MerQube
Index provider, MerQube, launched in 2019, with the aim of providing a “technology-driven answer to the most complex, rules-based investment...
Sean O' Hara
Pacer ETFs has announced the launch of three Cash Cows UCITS ETFs. The firm writes that this will give European...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by