How Do Exchanges Select Which Spot Markets to Include in Their Settlement Index? ⎊ Path

How Do Exchanges Select Which Spot Markets to Include in Their Settlement Index?

Exchanges select spot markets based on criteria designed to ensure the index is robust, fair, and resistant to manipulation. Key criteria include high trading volume, deep liquidity, strong regulatory compliance, and a history of reliable operation.

They often exclude exchanges with low volume or those that show signs of irregular trading activity. The goal is to create a representative, broad-based index that accurately reflects the true market price of the underlying asset.

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Glossar

Spot Markets

Transaction ⎊ Spot Markets are financial venues where assets, such as cryptocurrencies, are traded for immediate delivery and settlement, typically occurring within two business days.