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Houston TX
Legendary Market Wizard
Experience: Advanced
Platform: TT and Stellar
Broker: Advantage Futures
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,049 since Dec 2013
Thanks Given: 4,388
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CME is launching 11 new crypto reference rates. Why is this important? CME crypto futures are financially settled vs the reference rates! Without more reference rates the CME can not launch more crypto futures. I suspect that in the next year we will see CME announce several more crypto futures based upon these reference rates.
Coinbase, which is the largest crypto exchange in the US recently bought FairX, which is a regulated futures exchange by the U.S. Commodity Futures Trading Commission. Rumor is that Coinbase will be launching their own regulated futures soon. Suspect that CME's move is in part to get ahead of that. (Just FYI Coinbase has a marketcap of $36B vs Deutsche Boerse at €31B/$34B, ICE at $71B and CME Group at $86B)
New CME CF Reference Rates and Real-Time Indices
Available on 11 more cryptocurrencies starting April 25
CME Group, in partnership with CF Benchmarks, will expand our suite of regulated, non-tradable Cryptocurrency Reference Rates and Real-Time Indices to include 11 new cryptocurrencies starting April 25.
About CME CF Cryptocurrency Reference Rates and Real-Time Indices
• All CME CF Reference Rates and Real-Time Indices are regulated and based on robust, publicly available methodologies.
• Together with bitcoin and ether, these additional 11 Reference Rates and Real-Time Indices capture 90% of the investible cryptocurrency market capitalization today.
• Each Reference Rate and Real-Time Index is calculated using aggregated trade flow from at least two constituent exchanges initially, including Bitstamp, Coinbase, Gemini, itBit, and Kraken, with LMAX Digital providing data starting May 3.
• Reference Rates are once-a-day reference rates of the U.S. dollar price of each respective coin, while Real-Time Indices are published once per second, 24 hours per day, 365 days per year.
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