International derivatives marketplace CME Group today announced it plans to launch two new reference rates for bitcoin and ether on February 28 – the CME CF Bitcoin Reference Rate New York (BRRNY) and CME CF Ether-Dollar Reference Rate New York (ETHUSD_NY) – which will provide a once-a-day reference rate of the U.S. dollar price of the two digital assets, published at 4 p.m. New York time.
Tim McCourt, Global Head of Equity Index and Alternative Investment Products, CME Group, comments:
“These new reference rates are designed to meet the ever-evolving needs of participants in the digital asset space. In Q4 2021, the New York calculation window was the second-most traded hour for Bitcoin futures behind the London rate.
As we continue to see more institutional clients use our Bitcoin and Ether futures products in active portfolios or structured products like ETFs, these New York reference rates become increasingly important as they allow market participants to more accurately and precisely assess cryptocurrency price risk with timing more closely aligned to their portfolios and regions.”
These new reference rates will complement the existing CME CF Bitcoin Reference Rate (BRR) and CME CF-Ether Dollar Reference Rate (ETHUSD_RR), which provide a daily benchmark price for bitcoin and ether in U.S. dollars, published at 4 p.m. London time. The BRR and ETHUS RR will continue to serve as the benchmark rates for settlement of all CME Group Bitcoin futures, Micro Bitcoin futures and Ether futures and Micro Ether futures contracts, respectively.
Sui Chung, CEO of CF Benchmarks, comments:
“This launch is testament to the joint commitment of CF Benchmarks and CME Group to deliver innovative solutions to investors in the digital asset space. Providing variants of two of the most trusted and liquid benchmarks in the space will serve only to further accelerate adoption for digital assets amongst institutional investors.”