Starting July 29, the Chicago Mercantile Exchange (CME) Group and CF Benchmarks will provide new real-time indices and reference rates for Ripple (XRP) and Internet Computer (ICP).
The CME Group announced on July 11 that CF Benchmarks would publish these new indices daily to provide a broad spectrum of market participants with accurate and reliable pricing information for Ripple and Internet Computer.
Indices for XRP and ICP to be Provided by CME Group
The new benchmarks will depend on pricing data from the most prominent cryptocurrency exchanges and trading platforms in the CME CF Benchmark suite. Data from at least two of these exchanges will be employed to calculate each benchmark.
Bitstamp, Coinbase, Gemini, itBit, Kraken, and LMAX Digital are the exchanges that provide the pricing data.
“These new benchmarks are intended to offer a wide variety of market participants clear and transparent pricing data, thereby enabling them to value portfolios or develop structured products more accurately,” stated Giovanni Vicioso, the Global Head of Cryptocurrency Products at CME Group.
Vicioso stated, “We will provide pricing data across more than 93% of the investible cryptocurrency market capitalization, enabling clients worldwide to more effectively manage their risk, with 24 cryptocurrencies in our suite of CME CF References Rates and Real-Time Indices.”
Sui Chung, CEO of CF Benchmarks, stated that the new reference rates and indices will be subject to the same rigorous standards as the other benchmarks in the CME CF Single Asset Series. This would guarantee consumers’ trust when they interact with these new assets.
Potentially Regulated Bitcoin Trading Services
According to reports, CME discussed establishing a regulated Bitcoin trading platform with cryptocurrency merchants in May.
If the agreement is consummated, EBS, a Swiss currency trading platform renowned for its stringent crypto regulations, could offer CME’s Bitcoin trading platform. This addition would enhance CME’s current Bitcoin futures and enable investors to conduct “basis trades.”