CME Group, the world's leading and most diverse derivatives marketplace, and Crypto Facilities Ltd, a world-leading cryptocurrency trading platform, today launched the CME CF Ether-Dollar Reference Rate (Ether Reference Rate), which will provide a daily benchmark price in U.S. dollars at 4 pm London time, and CME CF Ether-Dollar Real Time Index (Ether Real Time Index), which will allow users access to a real-time Ether price in U.S. 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 major cryptocurrency exchanges: Kraken and Bitstamp. The reference rates are available today on CME Group and Crypto Facilities websites and will be distributed on the CME Group Market Data Platform beginning June 4, 2018.
"The Ether Reference Rate and Real Time Index are designed to meet the evolving needs of this marketplace," said Tim McCourt, Managing Director and Global Head of Equity Products and Alternative Investments at CME Group. "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," said Dr. 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 existing Bitcoin Oversight Committee, consisting of CME Group, Crypto Facilities and leading 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.