The Chicago Mercantile Exchange (CME Group) in partnership with Crypto Facilities, a UK-based digital asset exchange specializing in crypto futures, have launched the CME CF Ether-Dollar Reference Rate and Real Time Index, according to an announcement May 14. The indexes will provide users access to a real-time Ether (ETH) price in US dollars.
According to a press release, the CME CF Ether-Dollar rates will “provide a standardized reference rate and spot price index”. Both rates will reportedly be calculated by Crypto Facilities, and will be based on transactions and order book activity from crypto exchanges Bitstamp and Kraken. CME Group further states that “the oversight of the products is managed by an independent committee that sets forth a code of conduct and meet to review the practice standards.” According to CME:
“The products include a spot price index called the CME CF Ether Dollar Real Time Index, known as ETH_RTI_USD, and a reference rate called the CME CF Ether Dollar Reference Rate, known as ETH_RR_USD... ETH_RTI_USD is a real time index of the US dollar price of one Ether published once per second 24 hours a day 365 days per year. This index provides real time transparency to the US dollar price of Ether. ETH_RR_USD is a daily reference rate of the US dollar price of one Ether as of 4 p.m. London time...”
Tim McCourt, Managing Director and Global Head of Equity Products and Alternative Instruments at GME Group said:
“The Ether Reference Rate and Real Time Index are designed to meet the evolving needs of the marketplace. Providing price transparency and a credible price reference source is a key development for users of Ethereum.”
Bitcoin (BTC) futures trading was launched in December 2017 by the Chicago Board Options Exchange and Chicago Mercantile Exchange. Recently, Crypto Facilities, which is regulated by the Financial Conduct Authority in the UK, introduced the “first regulated” futures contracts for ETH. The products reportedly will enable investors to take a long or short position on the cryptocurrency.
Earlier in May, the Federal Reserve Bank of San Francisco released an Economic Letter, suggesting that the BTC price decline following its $20,000 peak was the result of the launch of BTC futures trading.