Group Chicago Mercantile exchange (CME) will change the reference rate and the index associated with the cryptocurrency Ethereum. About it writes The Block with reference to the notice published by the company on Friday.
itBit exchange division of the new York FINTECH companies Paxos – provide data for two financial instruments, which is now used information, Bitstamp and Kraken. Crypto Facilities will continue to function as administrator of the indices.
According to CME, itBit meets the criteria for inclusion in the index. Add itBit may signal the impending launch of futures contracts on live, causes The Block source:
“I think they’re prepping for launch of futures on air. But they need to increase the reliability of the index”.
Not having reliable resources of data calculated in Fiat futures may be subject to manipulation or simply not reflect the real price of the underlying instrument, the source added.
“This is the implicit limit of the CME futures with settlement in Fiat – they always need market data from spot exchanges”.
Answering the question of The Block about whether running Ethereum futures in the near future, the exchange stated that they are focused on working with the index and reference rate.
Backsight bet bitcoin on the CME is the basis of the futures product, tied to the largest bitcoin. This year, the instrument enjoyed great popularity among the bidders, thank you what was installed new highs on several parameters. To calculate an index rate among other data used itBit, Coinbase and Kraken.
itBit Ethereum began trading on the spot market this year. Also launching its own futures live plan to implement the platform ErisX and LedgerX. Recently obtained permissions allow them to carry out calculations with the participants directly in cryptocurrency.
The regulator, the Commission on trade commodity futures (CFTC) expressed an opinion that no objection to the emergence of futures contracts on Ethereum, for this reason, probably, additionally, they will very soon.
“We get a derivatives exchange with the desire to start a project. If they came with specific derivatives that would meet our requirements, I think the chances for certification would be high”, — said a senior official of the Commission.
The role of the CFTC in the United States is the oversight of the futures markets and the emerging markets related to cryptocurrency.
Publication date 08.07.2019
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