CME Group And Crypto Facilities Announce the Launch of Ethereum Reference Rate And Price Index

Just a few days back, a U.K-based crypto startup Crypto Facilities announced the launch of Ethereum Futures Contract in the cryptocurrency market. Now, the company has joined hands with the world’s biggest derivatives marketplace CME Group for launching an Ethereum Reference Rate and a real-time ether-dollar price index.

According to the official press release, CME would be providing the real-time price of Ether depending on “transactions and order book activity” available from crypto exchanges like Bitstamp and Kraken and also "a daily benchmark price in U.S. dollars" every 24 hours.

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

CME Group in its press release has mentioned that 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…”

Founder and CEO of Crypto Facilities, Timo Schlaefer said:”Ether, the second largest cryptocurrency, experienced incredible adoption and growth in 2017, evolving into the leading blockchain for smart contracts. 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 press release also mentions that the new indices will be overseen by an independent committee called Bitcoin Oversight Committee which has itself been formed by Crypto Facilities, CME Group and other industry players. The announcement further goes to mention that “this "oversight committee will regularly review the methodology, practices and standards to protect the integrity of the reference rates.”

Last year during when the Bitcoin craze was at its peak in mid-December 2017, the CME Group was the first to launch the Bitcoin Futures Contract. This move will give the derivatives giant a lead towards eventually launching Ethereum Futures too, on its platform.