Ether is growing in its popularity amongst cryptocurrency traders. Spot prices for these markets vary across the exchanges that offer Ether for trading.
Responding to the need for enhanced pricing information on rapidly growing cryptocurrencies, CME Group and CF Benchmarks have created standardized reference rates and real-time indices for Ether.
The products include a spot price index called the CME CF Ether Dollar Real Time Index – known as ETHUSD_RTI. And a reference rate called the CME CF Ether Dollar Reference Rate, or ETHUSD_RR.
Both are designed to help accelerate the professionalization of Ether trading.
Oversight of these products is managed by an independent committee that sets forth a code of conduct and meets regularly to review the practice, standards and definition of the rate to ensure its relevancy and integrity.
CME CF Ether Dollar Real Time Index
ETHUSD_RTI is a real-time index of the U.S. 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 U.S. dollar price of Ether.
CME CF Ether Dollar Reference Rate
ETHUSD_RR is a daily reference rate of the U.S. Dollar price of one Ether as of 4:00 p.m. London time.
Each day, the ETHUSD_RR aggregates the trade flow of major Ether spot exchanges during a specific one-hour calculation window. This one-hour window is then partitioned into twelve, five-minute intervals, where the ETHUSD_RR is calculated as the equally-weighted average of the volume-weighted medians of all twelve partitions.
This ETHUSD_RR calculation ensures tradability and replicability in the underlying spot markets.
The real-time index, ETHUSD_RTI and the reference-rate index, ETHUSD_RR will both further enhance market participants’ risk management of digital assets by providing credible reference rate and real-time price sources to the marketplace.