CHICAGO, Feb. 15, 2022 /PRNewswire/ -- CME
Group, the world's leading derivatives marketplace, today
announced it plans to launch two new reference rates for bitcoin
and ether on February 28 – the CME CF
Bitcoin Reference Rate New York (BRRNY) and CME CF Ether-Dollar
Reference Rate New York (ETHUSD_NY) – which will provide a
once-a-day reference rate of the U.S. dollar price of the two
digital assets, published at 4 p.m.
New York time.
"These new reference rates are designed to meet the
ever-evolving needs of participants in the digital asset space,"
said Tim McCourt, Global Head of
Equity Index and Alternative Investment Products, CME Group. "In Q4
2021, the New York calculation
window was the second-most traded hour for Bitcoin futures behind
the London rate. As we continue to
see more institutional clients use our Bitcoin and Ether
futures products in active portfolios or structured products
like ETFs, these New York
reference rates become increasingly important as they allow market
participants to more accurately and precisely assess cryptocurrency
price risk with timing more closely aligned to their portfolios and
regions."
These new reference rates will complement the existing CME CF
Bitcoin Reference Rate (BRR) and CME CF-Ether Dollar Reference Rate
(ETHUSD_RR), which provide a daily benchmark price for bitcoin and
ether in U.S. dollars, published at 4 p.m. London time. The BRR and
ETHUS RR will continue to serve as the benchmark rates for
settlement of all CME Group Bitcoin futures, Micro Bitcoin futures
and Ether futures and Micro Ether futures contracts,
respectively.
"The CF Benchmarks team is immensely proud to be able to provide
these two new versions of the groundbreaking CME CF Reference Rates
for bitcoin and ether that synchronize with the traditional market
close in North America," said
Sui Chung, CEO of CF Benchmarks.
"This launch is testament to the joint commitment of CF Benchmarks
and CME Group to deliver innovative solutions to investors in the
digital asset space. Providing variants of two of the most trusted
and liquid benchmarks in the space will serve only to further
accelerate adoption for digital assets amongst institutional
investors."
"CME Group's new digital asset bitcoin and ether reference rates
will add another risk management tool to the digital asset
marketplace," said Joe Hickey,
Global Head of Trading, BlockFi. "When you run a 24/7 global crypto
business, you need a regional end-of-day benchmark rate. This
will help fill BlockFi's institutional client demand for a liquid
benchmark rate during New York
hours, while also providing a new way for us to monitor the markets
regionally."
As the world's leading derivatives marketplace, CME Group
(www.cmegroup.com) enables clients to trade futures, options, cash
and OTC markets, optimize portfolios, and analyze data – empowering
market participants worldwide to efficiently manage risk and
capture opportunities. CME Group exchanges offer the widest range
of global benchmark products across all major asset classes based
on interest rates, equity indexes, foreign
exchange, energy, agricultural
products and metals. The company offers futures and
options on futures trading through the CME Globex® platform, fixed
income trading via BrokerTec and foreign exchange trading on the
EBS platform. In addition, it operates one of the world's
leading central counterparty clearing providers, CME
Clearing.
CME Group, the Globe logo, CME, Chicago Mercantile Exchange,
Globex, and, E-mini are trademarks of Chicago Mercantile
Exchange Inc. CBOT and Chicago Board of Trade are trademarks of Board
of Trade of the City of Chicago,
Inc. NYMEX, New York Mercantile Exchange and ClearPort are
trademarks of New York Mercantile Exchange, Inc. COMEX is a
trademark of Commodity Exchange, Inc. BrokerTec and EBS are
trademarks of BrokerTec Europe LTD and EBS Group LTD,
respectively. Dow Jones, Dow Jones Industrial Average,
S&P 500 and S&P are service and/or trademarks of Dow Jones
Trademark Holdings LLC, Standard & Poor's Financial Services
LLC and S&P/Dow Jones Indices LLC, as the case may be, and have
been licensed for use by Chicago Mercantile Exchange Inc. All
other trademarks are the property of their respective owners.
CME-G
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SOURCE CME Group