CME Launches Additional Crypto Benchmarks
Posted by Colin Lambert. Last updated: April 7, 2022
CME Group and CF Benchmarks have extended the cryptocurrency benchmark service, adding a host of currencies to the existing Bitcoin and Ether benchmarks that were unveiled in February.
The new benchmarks will be published daily at 4pm London time from April 25 in Algorand, Bitcoin Cash, Cardano, Chainlink, Cosmos, Litecoin, Polkadot, Polygon, Solana, Stellar Lumens and Uniswap. The products are not available as a tradable instrument.
“As the digital asset market continues to expand, there is an increasing demand for reliable, standardised cryptocurrency pricing information based on robust, regulated reference rates,” says Tim McCourt, CME Group global head of equity and FX products. “These new benchmarks, which capture over 90% of the total investible cryptocurrency market cap today, are designed to allow traders, institutions and other users to confidently and more accurately manage cryptocurrency price risk, price portfolios or create structured products like ETFs.”
Sui Chung, CEO of CF Benchmarks, adds, “Extending the CME CF Cryptocurrency Reference Rates and real time indices further underlines the commitment of both CF Benchmarks and CME Group to serving investors of all types with robust benchmark pricing across a wider range of cryptocurrency assets. This also further adds to the continued adoption of the digital asset class through regulated investment products and funds.”
The reference rates have regular expert oversight, CME says, adding they are designed to meet the growing need for transparent, regulated and round-the-clock pricing. “Enhancing market infrastructure means a broader range of investors can easily engage in the digital asset class,” says Juthica Chou, head of OTC options trading at Kraken. “The launch of 11 new indices opens the door for traditional investors to gain exposure to a much broader range of cryptocurrencies through a suite of products they are already familiar with.”
CME says several crypto exchanges and trading platforms will provide pricing data for the new benchmarks, starting initially with Bitstamp, Coinbase, Gemini, itBit and Kraken, as well as LMAX Digital beginning May 3. Each coin will trade on a minimum of two of these constituent exchanges.
“The transparency and robustness of the new CME CF Reference Rates enable a much broader range of products representing the diversity of crypto assets,” says Joshua Lim, head of derivatives at Genesis Global Trading. “We’re excited to be a liquidity partner on the variety of instruments that will be built on top of them.”