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What Is the Purpose of an “Outlier Removal” Rule in Index Calculation?

The purpose of an outlier removal rule is to enhance the robustness and reliability of the Index Price by filtering out extreme price quotes from individual exchanges that are clearly erroneous or manipulative. This ensures that the final composite rate is not skewed by temporary, non-representative price anomalies.

How Do ‘Indicative Quotes’ Differ from ‘Firm Quotes’ in an RFQ System?
Why Is a Single, Centralized Oracle Considered a Security Risk for a DeFi Derivative?
What Is the Purpose of a “Kill Switch” or Circuit Breaker in an Automated Quoting System?
What Is the Benchmark Used for Determining the Final Price in Cash Settlement?