Kraken to supply pricing data for CME Group’s new bitcoin indices
Bitcoin and digital assets exchange Kraken has been selected to be a key supplier of market data for real-time and reference bitcoin price indices by CME Group.
According to a press release sent to CoinReport, the following indices will be launched in the fourth quarter of 2016 in collaboration with Crypto Facilities Ltd.:
- CME CF Bitcoin Reference Rate (BRR)
- CME CF Bitcoin Real Time Index (RTI)
“We are proud to provide accurate, reliable, real-time data for the world’s leading derivatives marketplace,” said Jesse Powell, CEO of Kraken. “It is critical for traders to have a fully credible and reliable reference rate source around the clock, and Kraken is proud to provide our data.”
CME Group is a joint operator of the Dow Jones Industrial Average and the S&P 500 and one of the largest futures and options exchanges in the world.
The BRR will calculate a once-a-day, transparent reference rate of the US dollar (USD) price of bitcoin by monitoring and aggregating the trade flow of major bitcoin spot exchanges during a specific calculation window.
The RTI will create a consolidated order book by monitoring the global demand to buy and sell bitcoin. The order book will reflect current market prices of bitcoin in USD and will be published about every second. Crypto Facilities Ltd. will calculate the RTI.
The announcement comes as Kraken continues to build its reputation as a reliable source of bitcoin market data. In 2014, Kraken became the first bitcoin exchange to supply complete volume and price data to the Bloomberg Terminal. The exchange was chosen to aid in the Mt. Gox exchange investigation last year and announced a multi-million dollar deal with Japanese venture capital firm SBI Investment in February.
Image courtesy of Kraken