CME Group partners with Crypto Facilities and launches the CME CF Ether-Dollar Reference Rate

It was reported in a recent press release that the Chicago Mercantile Exchange (CME Group) has partnered with Crypto Facilities (CF), UK-based financial services firm that enables cryptocurrency futures trading. As a consequence of this cooperation, the CME CF Ether-Dollar Reference Rate and Real Time Index has been launched, in accordance with an announcement May 14. With this innovation, users now are given an opportunity to monitor a real-time Ether (ETH) price in US dollars. As has been stated, these rates will perform a function of providing “a standardized reference rate and spot price index”, each of them will be reportedly calculated by Crypto Facilities. They will be based on performance of crypto exchanges like Bitstamp and Kraken, their transaction and order book activity.

Beyond this CMD Group exposed that they have established an independent committee to set forth a code of conduct and meet to review the practice standards. The exchange has also claimed that the index, updated every second non-stop, is able to provide clarity to the US dollar price of Ether. The daily published index is said to be designed in accordance with with the evolving needs of marketplace. This price transparency, as many believe, will spur further development of Ethereum, which has become the second largest cryptocurrency and that has experienced huge growth in 2017. A credible price reference source will contribute to responding to the users’ queries. The “first regulated” futures contracts for ETH has been recently introduced by FP, whereas Bitcoin futures trading was launched in December 2017. This will allow investors to take long or short position on the Ether.