CME Group Expands Cryptocurrency Reference Rates and Real-Time Indices
CME Group and CF Benchmarks are expanding their suite of cryptocurrency reference rates and real-time indices. The two new additions will cover Ripple XRP (XRP) and Internet Computer (ICP) and will be calculated and published daily by CF Benchmarks starting July 29.
What are Reference Rates and Real-Time Indices?
These reference rates and indices are not tradable futures products, but they do provide clear and transparent pricing data for market participants. This helps them to accurately value portfolios or create structured products.
Giovanni Vicioso, Global Head of Cryptocurrency Products at CME Group, said, “These new reference indices are designed to provide clear and transparent pricing data to a wide range of market participants, enabling them to more accurately value portfolios or create structured products.”
Expanding Coverage
With the addition of XRP and ICP, CME Group’s suite of CME CF Reference Rates and Real-Time Indices now covers 24 cryptocurrencies, representing more than 93% of the investable cryptocurrency market capitalization.
“We will provide pricing data across more than 93% of the investable cryptocurrency market capitalization, helping clients around the world better manage their risk,” Vicioso added.
How the Indices are Calculated
The new reference indices use price data from major cryptocurrency exchanges and trading platforms that are currently constituent exchanges of the CME CF Benchmark reference rate and real-time index suite. These exchanges include Bitstamp, Coinbase, Gemini, itBit, Kraken, and LMAX Digital. Each of the new reference indices will be calculated using price data from a minimum of two of these exchanges.
Growing Interest in Crypto
Sui Chung, CEO of CF Benchmarks, said, “CF Benchmarks is proud to continue supporting the expansion and maturation of this asset class as clients begin to distribute their activity across a wider range of cryptocurrencies.”
Daily and Real-Time Data
Each of these new reference indices will provide the price in US dollars of each digital asset, published once a day at 16:00 London time. The respective real-time index will be published once per second, 24 hours a day, 365 days a year.
These new indices provide valuable data for market participants interested in XRP and ICP. The expansion of CME Group’s reference rates and real-time indices reflects the growing interest in the cryptocurrency market and the need for reliable and transparent pricing data.
