CHICAGO, May 2, 2016 /PRNewswire/ -- CME Group, the
world's leading and most diverse derivatives marketplace, today
announced it will collaborate with Crypto Facilities Ltd., a
digital assets trading platform, to develop two new products
planned to launch in the fourth quarter of 2016: CME CF Bitcoin
Reference Rate (BRR), which will provide a final settlement price
in U.S. 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.
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 U.S. 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 U.S. 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,"
said Sandra Ro, Executive Director
and Digitization 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 professionalization of bitcoin trading and
further establishes digital assets as a new asset class," said 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," 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.
For more information on this offering, please visit
cmegroup.com/bitcoin.
About CME Group
As the world's leading and most
diverse derivatives marketplace, CME Group (www.cmegroup.com) is
where the world comes to manage risk. CME Group exchanges offer the
widest range of global benchmark products across all major asset
classes, including futures and options based on interest rates,
equity indexes, foreign exchange, energy, agricultural products and
metals. Around the world, CME Group brings buyers and sellers
together through its CME Globex® electronic trading platform and
its exchanges based in Chicago,
New York and London. CME Group also operates one of the
world's leading central counterparty clearing providers through CME
Clearing and CME Clearing Europe, which offer clearing and
settlement services across asset classes for exchange-traded and
over-the-counter derivatives. CME Group's products and services
ensure that businesses around the world can effectively manage risk
and achieve growth.
CME Group is a trademark of CME Group Inc. The Globe Logo, CME,
Globex and Chicago Mercantile Exchange are trademarks of Chicago
Mercantile Exchange Inc. CBOT, the Chicago Board of Trade, KCBOT, KCBT and
Kansas City Board of Trade are
trademarks of the Board of Trade of the City of Chicago, Inc. NYMEX, New York
Mercantile Exchange and ClearPort are registered trademarks of New
York Mercantile Exchange, Inc. COMEX is a trademark of Commodity
Exchange, Inc. All other trademarks are the property of their
respective owners. Further information about CME Group (NASDAQ:
CME) and its products can be found at www.cmegroup.com.
About Crypto Facilities Ltd.
London-based Crypto Facilities is a digital
assets trading platform and the leading provider of regulated
derivatives on digital assets (www.cryptofacilities.com). The
company's products serve to trade and manage the price risk of
bitcoin and other digital tokens.
CME-G
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SOURCE CME Group