CME Group Will Launch Three New Crypto Reference Rates
CME Group, the world’s largest derivatives exchange, plans to introduce three new cryptocurrency reference rates this month.
In collaboration with CF Benchmarks, reference prices for the native tokens of the Avalanche, Tezos, and Filecoin blockchains will be live on the CME on October 31. Data for these reference rates will be provided by Bitstamp, Coinbase, Gemini, itBit, Kraken, and LMAX Digital.
The reference rates will display the US dollar price of each token once daily at 3 p.m. UTC, while the associated real-time index will be released once every second, 24 hours a day, all year.
According to CME Group Global Head of Bitcoin Products Giovanni Vicioso, the CME CF Reference Rates and real-time indexes will capture more than 92% of the investable cryptocurrency market capitalization. Vicioso stated in a release:
“Together with bitcoin, ether and other available cryptocurrencies, CME CF Reference Rates and Real-Time Indices will capture more than 92% of the investable cryptocurrency market capitalization.
These new benchmarks are designed to allow traders, institutions and other users to access a much broader range of cryptocurrencies through a suite of products they are already familiar with, allowing them to confidently and more accurately manage cryptocurrency price risk, value portfolios or create structured products like ETFs.”
While they are not traded futures, the introduction of additional reference rates might indicate possible additions to CME trading crypto futures. CME increased its portfolio of crypto derivatives products this month, offering Ether options on September 12.
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