Source: Digital Asset Research
Digital Asset Research (DAR), a leading provider of highest quality crypto market data and insights, today announced DAR’s Exchange Vetting methodology and resulting “clean” FTSE DAR pricing will provide the institutional-grade underpinning for Eurex’s new Bitcoin index futures.
DAR’s Exchange Vetting process combined with the robust index methodology and governance framework of FTSE Russell have been selected by Eurex - the first exchange in Europe to offer Bitcoin index futures. The Eurex Bitcoin futures offering provides trusted access to cryptocurrencies in a regulated market.
Arne Staal, CEO of FTSE Russell, a London Stock Exchange Group (LSEG) business: “We are excited for this next step in the expansion of the digital asset ecosystem to meet institutional investor client risk management needs. Our digital asset indices apply the same rigorous index policy and governance framework used with our equity and fixed income products. Perhaps most importantly in this market, in collaboration with DAR, we have created a vetting methodology to set a standard for digital asset and exchange index inclusion, that offers consistent prices reflective of the real investable market to the investor community.”
In an environment where cryptocurrencies trade across hundreds of lightly regulated or unregulated exchanges, DAR’s vetting processes apply institutional-level diligence to meet an industry-wide need for reliable crypto data. The asset and exchange vetting process combines quantitative and traditional qualitative due diligence to identify exchanges reporting accurate volumes and eliminate exchanges that are not appropriate for determining an accurate market price. DAR performs its Exchange Vetting quarterly.
“We are pleased to deliver ‘clean’ prices for Eurex’s first Bitcoin index futures by emphasizing accurate price discovery, transparency, and consistency through our Exchange Vetting process and FTSE DAR pricing methodology,” said Doug Schwenk, DAR’s CEO.
The FTSE Bitcoin Index, which is the underlier for Eurex’s Bitcoin index futures, reflects the settlement price of Bitcoin as determined by the FTSE DAR Reference Price. The new futures contracts are traded in EUR and USD. Liquidity will be supported by order book and over-the-counter liquidity providers. Trading starts today, Monday, April 17, 2023.
Michael Peters, CEO of Eurex: “Investors need robust trading and clearing safeguards when engaging in the crypto market. We are looking forward to cooperating with FTSE Russell and Digital Asset Research to jointly deliver superior transparency, consistency, and safeguards to this emerging asset class.”
In 2017, DAR began measuring crypto exchange quality for clients who were concerned about reputational, price, and counterparty risks. Today, its risk assessment framework continues to evolve in response to feedback from clients and regulators.
Institutions need reliable crypto asset pricing data that meets the quality standards seen in traditional markets. Calculating “clean” crypto prices is a challenge in an industry with notoriously bad data. DAR’s pricing methodology solves many of the problems associated with crypto pricing by implementing thorough quantitative and qualitative diligence. To achieve this, DAR utilizes a five-step process to vet, qualify, aggregate, clean, and calculate digital asset prices.