- CME Group partners with Crypto Facilities to launch Ether-Dollar Reference Rate and Real-Time Index.
- The index grants users access to a real-time Ether price in US dollars
A recent press release on Monday 14th May revealed that Chicago Mercantile Exchange (CME) Group, the largest derivatives exchange in the world, as well as one of the oldest, has partnered with Crypto Facilities, a cryptocurrency exchange that specializes in cryptocurrency futures and based in the UK, have launched the ETH-USD Reference Rate and Real-Time Index. Users are granted access to a real-time Ether price in US dollars with the index.
The press release stated that the CME CF ETH-USD Reference rates will “provide a standardized reference rate and spot price index”. Crypto Facilities will reportedly calculate both rates, which would be based on transactions and order book activity from Bitstamp and Kraken cryptocurrency exchanges. Furthermore, CME Group stated that “the oversight of the products is managed by an independent committee that sets forth a code of conduct and meets to review the practice standards.” CME said:
“The products include a spot price index called the CME CF Ether Dollar Real-Time Index, known as ETH_RTI_USD, and a reference rate called the CME CF Ether Dollar Reference Rate, known as ETH_RR_USD… ETH_RTI_USD is a real-time index of the US dollar price of one Ether published once per second 24 hours a day, 365 days per year. This index provides real-time transparency to the US dollar price of Ether. ETH_RR_USD is a daily reference rate of the US dollar price of one Ether as of 4 p.m. London time…”
The Managing Director and Global Head of Equity Products and Alternative Instruments at CME Group, Tim McCourt, said:
“The Ether Reference Rate and Real-Time Index are designed to meet the evolving needs of the marketplace. Providing price transparency and a credible price reference source is a key development for users of Ethereum.”
Dr. Timo Schlaefer, Crypto Facilities CEO said:
“Ether, the second largest cryptocurrency, experienced incredible adoption and growth in 2017, evolving into the leading blockchain for smart contracts. We are excited to be contributing to the strong community that has developed around the Ethereum network by providing a reliable reference rate and real-time Ether-Dollar price.”
Chicago Board Options Exchange (CBOE) launched the Bitcoin futures contracts last December, followed by the Chicago Mercantile Exchange. Recently, Crypto Facilities, which is under the control of the UK Financial Conduct Authority, launched the “first regulated” Ether futures contracts. The ETH contract will reportedly allow investors to either take a short or long position on the Ether.
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