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Bitcoin and Ethereum Dollar Reference Rates

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CME Group, the world’s leading derivatives marketplace, 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.  

“These new reference rates are designed to meet the ever-evolving needs of participants in the digital asset space,” said Tim McCourt, Global Head of Equity Index and Alternative Investment Products, CME Group. “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. 

“The CF Benchmarks team is immensely proud to be able to provide these two new versions of the groundbreaking CME CF Reference Rates for bitcoin and ether that synchronize with the traditional market close in North America,” said Sui Chung, CEO of CF Benchmarks. “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.”

“CME Group’s new digital asset bitcoin and ether reference rates will add another risk management tool to the digital asset marketplace,” said Joe Hickey, Global Head of Trading, BlockFi. “When you run a 24/7 global crypto business, you need a regional end-of-day benchmark rate. This will help fill BlockFi’s institutional client demand for a liquid benchmark rate during New York hours, while also providing a new way for us to monitor the markets regionally.”

As the world’s leading derivatives marketplace, CME Group (www.cmegroup.com) enables clients to trade futures, options, cash and OTC markets, optimize portfolios, and analyze data – empowering market participants worldwide to efficiently manage risk and capture opportunities. CME Group exchanges offer the widest range of global benchmark products across all major asset classes based on interest ratesequity indexesforeign exchangeenergyagricultural products and metals.  The company offers futures and options on futures trading through the CME Globex® platform, fixed income trading via BrokerTec and foreign exchange trading on the EBS platform.  In addition, it operates one of the world’s leading central counterparty clearing providers, CME Clearing. 

CME Group, the Globe logo, CME, Chicago Mercantile Exchange, Globex, and, E-mini are trademarks of Chicago Mercantile Exchange Inc.  CBOT and Chicago Board of Trade are trademarks of Board of Trade of the City of Chicago, Inc.  NYMEX, New York Mercantile Exchange and ClearPort are trademarks of New York Mercantile Exchange, Inc.  COMEX is a trademark of Commodity Exchange, Inc. BrokerTec and EBS are trademarks of BrokerTec Europe LTD and EBS Group LTD, respectively.Dow Jones, Dow Jones Industrial Average, S&P 500 and S&P are service and/or trademarks of Dow Jones Trademark Holdings LLC, Standard & Poor’s Financial Services LLC and S&P/Dow Jones Indices LLC, as the case may be, and have been licensed for use by Chicago Mercantile Exchange Inc.  All other trademarks are the property of their respective owners.

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S. Jack Heffernan Ph.D. Economist at Knightsbridge holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Crypto, Mining, Shipping, Technology and Financial Services.