CME Group and CF Benchmarks to Launch APAC Reference Rates for Bitcoin and Ether on September 11

Rhea-AI Summary

CME Group and CF Benchmarks are launching two new APAC-specific reference rates for bitcoin and ether on September 11. The rates will provide a once-a-day reference for the U.S. dollar price of the digital assets, published at 4 p.m. Hong Kong/Singapore time. These rates aim to meet the needs of global participants in the growing digital asset space, with a focus on the APAC region. The new rates will complement the existing benchmark rates and serve as benchmarks for settlement of CME Group Bitcoin and Ether futures contracts.

CHICAGO and LONDON, Aug. 16, 2023 /PRNewswire/ -- CME Group, the world's leading derivatives marketplace, and CF Benchmarks, the leading provider of cryptocurrency benchmark indices, today announced plans to launch two new APAC-specific reference rates for bitcoin and ether on September 11 – the CME CF Bitcoin Reference Rate APAC (BRRAP) and CME CF Ether-Dollar Reference Rate APAC (ETHUSD_AP) – which will provide a once-a-day reference rate for the U.S. dollar price of the two digital assets, published at 4 p.m. Hong Kong/Singapore time.

"These new reference rates are designed to meet the ever-evolving needs of global participants in the growing digital asset space," said Giovanni Vicioso, Global Head of Cryptocurrency Products at CME Group. "Year-to-date, 37% of total crypto volume at CME Group has been traded during non-U.S. hours, with 11% of trades coming from the APAC region. As we continue to see more institutional clients use our Bitcoin and Ether futures products in active portfolios or structured products like ETFs, these APAC reference rates will allow market participants to more accurately and precisely hedge cryptocurrency price risk with timing more closely aligned to their portfolios."

These non-tradable reference rates will complement the existing CME CF Bitcoin Reference Rate (BRR) and CME CF-Ether Dollar Reference Rate (ETHUSD_RR), published at 4 p.m. London time, as well as the recently introduced CME CF Bitcoin Reference Rate New York (BRRNY) and CME CF Ether-Dollar Reference Rate New York (ETHUSD_NY), published at 4 p.m. New York time. The BRR and ETHUS RR will continue to serve as the benchmark rates for settlement of all CME Group Bitcoin futures, Micro Bitcoin futures and Ether futures and Micro Ether futures contracts.

"Crypto adoption continues apace and CF Benchmarks is delighted to facilitate financial institutions in providing regulated financial products to Asian markets with the introduction of APAC variants to our market defining Bitcoin Reference Rate and Ether-Dollar Reference Rate," said Sui Chung, CEO of CF Benchmarks. "As variants these benchmarks will be calculated and administered to the same exacting standards enjoyed by their existing London and New York counterparts, which have done so much to build investor and institutional confidence in crypto financial products."

For more information on these products, please visit www.cmegroup.com/cryptobenchmarks.   

About CME Group

As the world's leading derivatives marketplace, CME Group (www.cmegroup.com) enables clients to trade futures, options, cash and OTC markets, optimize portfolios, and analyze data – empowering market participants worldwide to efficiently manage risk and capture opportunities. CME Group exchanges offer the widest range of global benchmark products across all major asset classes based on interest rates, equity indexes, foreign exchange, energy, agricultural products and metals. The company offers futures and options on futures trading through the CME Globex platform, fixed income trading via BrokerTec and foreign exchange trading on the EBS platform. In addition, it operates one of the world's leading central counterparty clearing providers, CME Clearing. 

CME Group, the Globe logo, CME, Chicago Mercantile Exchange, Globex, and, E-mini are trademarks of Chicago Mercantile Exchange Inc. CBOT and Chicago Board of Trade are trademarks of Board of Trade of the City of Chicago, Inc. NYMEX, New York Mercantile Exchange and ClearPort are trademarks of New York Mercantile Exchange, Inc. COMEX is a trademark of Commodity Exchange, Inc. BrokerTec and EBS are trademarks of BrokerTec Europe LTD and EBS Group LTD, respectively. The S&P 500 Index is a product of S&P Dow Jones Indices LLC ("S&P DJI"). "S&P®", "S&P 500®", "SPY®", "SPX®", US 500 and The 500 are trademarks of Standard & Poor's Financial Services LLC; Dow Jones®, DJIA® and Dow Jones Industrial Average are service and/or trademarks of Dow Jones Trademark Holdings LLC. These trademarks have been licensed for use by Chicago Mercantile Exchange Inc. Futures contracts based on the S&P 500 Index are not sponsored, endorsed, marketed, or promoted by S&P DJI, and S&P DJI makes no representation regarding the advisability of investing in such products. All other trademarks are the property of their respective owners.

About CF Benchmarks

CF Benchmarks is the leading provider of cryptocurrency benchmark indices, authorised and regulated by the UK FCA under the EU BMR. Composed of market data from six constituent exchanges, its benchmark indices are provided through public methodologies and transparent governance, for tracking, valuing and settling risk in cryptocurrency financial services and products. CF Benchmarks' indices have been used to settle over $500bn of cryptocurrency derivative contracts listed for trading by CME Group and Kraken Futures.

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SOURCE CME Group

FAQ

What are the new reference rates being launched by CME Group and CF Benchmarks?

CME Group and CF Benchmarks are launching two new APAC-specific reference rates for bitcoin and ether.

When will the new reference rates be available?

The new APAC-specific reference rates will be available on September 11.

What is the purpose of these reference rates?

The reference rates aim to provide a once-a-day reference for the U.S. dollar price of bitcoin and ether, catering to the needs of global participants in the digital asset space.

What time will the reference rates be published?

The reference rates will be published at 4 p.m. Hong Kong/Singapore time.

How will the new reference rates benefit market participants?

The new reference rates will allow market participants to more accurately and precisely hedge cryptocurrency price risk with timing more closely aligned to their portfolios.

What will the new reference rates be used for?

The new reference rates will serve as benchmark rates for settlement of CME Group Bitcoin and Ether futures contracts.