CME Group and CF Benchmarks to Launch Three New Cryptocurrency Reference Rates and Real-Time Indices on October 31

Rhea-AI Summary

CME Group and CF Benchmarks are set to launch three new cryptocurrency reference rates and real-time indices on October 31. The new benchmarks, including Avalanche (AVAX), Filecoin (FIL), and Tezos (XTZ), will expand CME's offerings in the cryptocurrency space, capturing over 92% of the investable cryptocurrency market capitalization. These indices will be published daily and provide a transparent pricing mechanism for traders. Notable exchanges like Bitstamp and Coinbase will supply pricing data, addressing investor demand for a broader range of regulated cryptocurrency products.

Positive

• Launch of three new cryptocurrency reference rates enhances CME's market offerings.
• New benchmarks capture over 92% of the investable cryptocurrency market.
• Regular publication of indices promotes transparency and governance in crypto pricing.

Negative

• None.

CHICAGO and LONDON, Oct. 6, 2022 /PRNewswire/ -- CME Group, the world's leading derivatives marketplace, and CF Benchmarks, the leading provider of cryptocurrency benchmark indices, today announced plans to launch three new cryptocurrency reference rates and real-time indices, which will be calculated and published daily by CF Benchmarks, beginning October 31.

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These reference rates and indices are not tradable futures products. They include the following:

• Avalanche (AVAX)
• Filecoin (FIL)
• Tezos (XTZ)

"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," said Giovanni Vicioso, CME Group Global Head of Cryptocurrency Products. "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."

CME CF Reference Rates and Real-Time Indices are based on robust methodologies that have regular expert oversight and are designed to meet the growing need for transparent, regulated and round-the-clock pricing.

Several leading crypto exchanges and trading platforms will provide pricing data for these new benchmarks, starting initially with Bitstamp, Coinbase, Gemini, itBit, Kraken, and LMAX Digital. Each coin will trade on a minimum of two of these constituent exchanges.

"Investors are increasingly seeking exposure to a wider range of cryptocurrencies as they learn more about the potential of the digital asset class," said Sui Chung, CEO of CF Benchmarks. "Regulated investment products, spearheaded by CME Group's Crypto derivative suite, have helped open crypto to a much wider range of investors. Through its robust reference rates, CF Benchmarks is proud to be able to facilitate the creation of regulated financial products for this new asset class so investors can seek and manage exposure with confidence."

"The introduction of new products at CME Group is both exciting and necessary, as investors demand a focused exchange where safety and risk are a primary priority," said Bill Cannon, Head of Portfolio Management at Valkyrie Investments. "This expansion provides functional accessibility to a variety of new and unique financial products, bridging the ever-narrowing gap between traditional and decentralized financial markets. We find that these types of innovations, especially at the current point in the cycle, will help build a stronger foundation in digital assets and create new channels of growth considering the amount of investment currently entering the sector."

Each of these new reference rates will provide the U.S. dollar price of each digital asset, published once-a-day at 4 p.m. London time, while each respective real-time index will be published once per second, 24 hours a day, 365 days per year.

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. Dow Jones, Dow Jones Industrial Average, S&P 500 and S&P are service and/or trademarks of Dow Jones Trademark Holdings LLC, Standard & Poor's Financial Services LLC and S&P/Dow Jones Indices LLC, as the case may be, and have been licensed for use by Chicago Mercantile Exchange Inc.  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 new products is CME launching on October 31?

CME is launching three new cryptocurrency reference rates and real-time indices: Avalanche (AVAX), Filecoin (FIL), and Tezos (XTZ).

What percentage of the cryptocurrency market capitalization will the new benchmarks cover?

The new benchmarks will cover over 92% of the investable cryptocurrency market capitalization.

Which exchanges will provide pricing data for CME's new cryptocurrency benchmarks?

Pricing data will be provided by exchanges such as Bitstamp, Coinbase, Gemini, itBit, Kraken, and LMAX Digital.

How often will the new cryptocurrency indices be published?

The new indices will be published once per second, 24/7, while the reference rates will be published daily at 4 p.m. London time.

Who is involved in the launch of the new cryptocurrency products?

The launch involves CME Group and CF Benchmarks, a leading provider of cryptocurrency benchmark indices.