CME Group, a dominant player in derivatives trading, is gearing up to launch two novel reference rates for Bitcoin and Ether in the Asia-Pacific region. Partnering with CF Benchmarks, these rates will offer investors accurate pricing information in local time, further expanding the global reach of cryptocurrency trading.
CME Group’s Innovative Step in Crypto Space
In a significant stride towards fostering broader participation in the cryptocurrency realm, CME Group, the unrivaled hub for derivatives trading, has unveiled its plans to introduce a fresh pair of reference rates. These reference rates are set to be uniquely tailored for Bitcoin and Ether, specifically catering to the Asia-Pacific (APAC) market landscape. With the backing of CF Benchmarks, a leading provider of crypto benchmark indices, this collaboration ushers in a new era of precise and localized cryptocurrency pricing.
Asia-Pacific Focus: Bitcoin and Ether Reference Rates
CME Group’s forward-thinking initiative will materialize in the form of two new reference rates: the CME CF Bitcoin Reference Rate APAC and the CME CF Ether-Dollar Reference Rate APAC. These rates are scheduled to make their debut on the 11th of September. Each day at 4 p.m. Hong Kong time, these reference rates will offer insights into the U.S. dollar value of the respective cryptocurrencies, catering directly to the discerning eyes of investors and institutions within the APAC region.
Read more: CME Group to Introduce Ether/Bitcoin Ratio Futures
Empowering Global Crypto Participants
Giovanni Vicioso, the Global Head of Cryptocurrency Products at CME Group, highlights the profound significance of these forthcoming reference rates. Vicioso notes that these rates are meticulously designed to cater to the dynamic requirements of a swiftly evolving digital asset space on a global scale. With the cryptocurrency trading landscape continually expanding, Vicioso’s insight resonates, reinforcing the pivotal role of accurate and timely pricing information.
Localized Precision for Enhanced Hedging
Vicioso further elaborates on the rationale behind this strategic move. He reveals that an impressive 37% of this year’s cryptocurrency volume has been traded during non-U.S. hours, with a substantial 11% stemming from the APAC region. By introducing these Asia-Pacific reference rates, market participants can now engage in more precise hedging strategies, aligning the timing of risk management with the unique dynamics of their portfolios.
A Tapestry of Existing and New Reference Rates
The partnership between CME Group and CF Benchmarks has already borne fruit in the form of several reference rates. Existing benchmarks, such as the CME CF Bitcoin Reference Rate (BRR) and the CME CF Ether-Dollar Reference Rate (ETHUSD_RR), are published at 4 p.m. London time. Similarly, the CME CF Bitcoin Reference Rate New York and the CME CF Ether-Dollar Reference Rate New York are released at 4 p.m. New York time. The newly introduced APAC reference rates are poised to seamlessly complement this intricate tapestry of benchmarks.
Shaping the Future of Crypto Engagement
As the cryptocurrency landscape continues its dynamic evolution, CME Group’s strategic move to introduce Asia-Pacific reference rates marks a pivotal step towards further global inclusion. With these localized benchmarks, investors in the APAC region are poised to engage with the digital asset realm on their terms. CME Group’s dedication to fostering accurate and relevant pricing data reaffirms its commitment to shaping the future of cryptocurrency engagement, one region at a time.
