futures
The Chicago Mercantile Exchange Group (CME) will change the benchmark rate and index associated with the Ethereum cryptocurrency . About it writes The Block with reference to the notice published by the company on Friday.
itBit – the exchange division of Paxos, a New York-based fintech company, will provide data for two financial instruments that now use Bitstamp and Kraken information. Crypto Facilities will continue to serve as the index manager.
According to CME, itBit meets the criteria for inclusion in the index. The addition of itBit can serve as a signal of the upcoming launch of futures contracts on the air, the source cites The Block:
“I think that they are preparing for the launch of futures on the air. But they need to increase the reliability of the index. ”
Without reliable data resources, futures calculated in Fiat may be manipulated or simply do not reflect the real price of the underlying instrument, the source added.
"This is an implicit limitation of CME futures with calculations in Fiat – they always need market data from spot exchanges."
Responding to a question from the Block about whether Ethereum futures will be launched in the near future, a spokesman for the exchange said that they were focused on working with the index and benchmark rate.
The benchmark bitcoin rate on the CME lies at the heart of the futures product tied to the largest cryptocurrency. In the current year, the instrument was particularly popular among bidders, thanks to which new maximums were set by several parameters at once . For the calculation of the reference rate, among others, itBit, Coinbase and Kraken data are used.
itBit started trading Ethereum on the spot market this year. Also launch their own futures on the air plan to implement the platform ErisX and LedgerX. Recently obtained permits will allow them to carry out calculations with bidders directly in the cryptocurrency .
The regulator Commodity Futures Trading Commission (CFTC) expressed the view that they did not object to the appearance of futures on Ethereum, for this reason, probably, they will appear on CME very soon.
“The derivatives market comes to us with the desire to launch a project. If they came with specific derivatives that would meet our requirements, I think the chances of certification would be high , ”said a high-ranking official of the Commission.
The role of the CFTC in the United States is to oversee the futures market, as well as emerging markets related to cryptocurrencies.
Publication date 07/08/2019
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