What Does the “CF” in CME CF Bitcoin Reference Rate Stand For?
The "CF" in CME CF Bitcoin Reference Rate stands for Crypto Facilities. Crypto Facilities is a financial services firm that administers the reference rate and real-time index for the CME.
They are responsible for the methodology and calculation, which is designed to meet the principles for financial benchmarks set by the International Organization of Securities Commissions (IOSCO). This collaboration ensures a robust and regulated benchmark.
Glossar
Bitcoin Reference Rate
Valuation ⎊ The Bitcoin Reference Rate functions as a standardized benchmark price for the cryptocurrency, crucial for accurate derivative pricing and risk management within financial markets.
Iosco Principles
Framework ⎊ The IOSCO Principles, initially developed for securities regulation, are increasingly relevant to cryptocurrency markets, options trading, and financial derivatives due to the inherent systemic risk and potential for investor harm.
Reference Rate
Benchmark ⎊ Reference Rate is the established, observable interest rate or index used as the basis for calculating floating payments, margin requirements, or funding costs within a financial contract, particularly for derivatives referencing time value.
Crypto Facilities
Derivatives ⎊ Crypto Facilities represent venues facilitating the trading of cryptocurrency derivatives, notably options and futures contracts, providing a standardized framework for price discovery and risk transfer within digital asset markets.
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.
Financial Services Firm
Framework ⎊ A Financial Services Firm operating within the cryptocurrency, options trading, and financial derivatives landscape provides a specialized infrastructure facilitating access to these markets.