Name a Major Cryptocurrency Index Used for Derivatives Settlement.
A prominent example is the BitMEX Bitcoin/USD Index (XBT), which aggregates data from multiple major spot exchanges. Other major exchanges like CME and Bakkt use their own reference rates, such as the CME CF Bitcoin Reference Rate (BRR).
These indices are designed to provide a reliable and tamper-proof benchmark for their respective derivative products.
Glossar
Cme Cf Bitcoin Reference Rate
Benchmark ⎊ The CME CF Bitcoin Reference Rate (BCRR) serves as a widely adopted benchmark price for Bitcoin, calculated by the Chicago Mercantile Exchange (CME) and CF Benchmarking.
Reference Rate
Benchmark ⎊ Within cryptocurrency derivatives and options trading, a reference rate serves as a benchmark, providing a foundational value against which contract pricing and settlement are determined.
Major Cryptocurrency Index
Construction ⎊ A Major Cryptocurrency Index represents a weighted aggregation of the largest digital assets, designed to mirror overall market performance and facilitate benchmark comparisons.
Cryptocurrency Derivatives
Function ⎊ These financial instruments derive their valuation from an underlying cryptocurrency, enabling sophisticated risk transfer and speculation without direct asset ownership.