CME Launches Ether Reference Rate, Real Time Index

CME Group has launched a reference rate for ether, the native cryptocurrency of the Etherium network.

The CME CF Ether-Dollar Reference Rate, which will provide a daily benchmark price in US dollars at 4 pm London time, and CME CF Ether-Dollar Real Time Index, which will allow users access to a real-time ether price in US dollars.

Both the Ether Reference Rate and Ether Real Time Index will be calculated by Crypto Facilities and will be based on transactions and order book activity from two cryptocurrency exchanges: Kraken and Bitstamp.

The reference rates went live on CME and Crypto Facilities websites on May 14, and will be distributed on the CME’s market data platform beginning June 4.

“The Ether Reference Rate and Real Time Index are designed to meet the evolving needs of this marketplace,” says Tim McCourt, managing director and global head of equity products and alternative investments at CME.. “Providing price transparency and a credible price reference source is a key development for users of Ethereum.”

“Ether, the second largest cryptocurrency, experienced incredible adoption and growth in 2017, evolving into the leading blockchain for smart contracts,” says Timo Schlaefer, CEO of Crypto Facilities. “We are excited to be contributing to the strong community that has developed around the Ethereum network by providing a reliable reference rate and real-time ether-dollar price.”

The exchange group says that the existing Bitcoin Oversight Committee, consisting of CME, Crypto Facilities and industry experts, will take on the additional responsibilities for overseeing these new reference rates. The oversight committee will regularly review the methodology, practices and standards to protect the integrity of the reference rates.

Galen Stops

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