“Perhaps most importantly in this market, in collaboration with DAR, we have created a vetting methodology to set a standard for digital asset and exchange index inclusion, that offers consistent prices reflective of the real investable market to the investor community.”
Eurex, the international exchange which primarily offers trading in European based derivatives, is set to launch the first European Bitcoin Index futures based on FTSE DAR Pricing.
FTSE DAR Pricing is published by Digital Asset Research (DAR), a provider of high quality crypto market data and insights that just launched DAR’s Exchange Vetting methodology, in combination with the robust index methodology and governance framework of FTSE Russell.
Eurex, the first exchange in Europe to offer Bitcoin index futures, is is the largest European futures and options market. The products traded on this exchange vary from German and Swiss debt instruments to European stocks and various stock indexes. The resulting ‘clean’ FTSE DAR pricing will provide the institutional-grade underpinning for Eurex’s new Bitcoin index futures.
DAR’s five-step process: vet, qualify, aggregate, clean, and calculate
The asset and exchange vetting process combines quantitative and traditional qualitative due diligence to identify exchanges reporting accurate volumes and eliminate exchanges that are not appropriate for determining an accurate market price. DAR performs its Exchange Vetting quarterly.
DAR’s pricing methodology solves many of the problems associated with crypto pricing by implementing thorough quantitative and qualitative diligence. To achieve this, DAR utilizes a five-step process to vet, qualify, aggregate, clean, and calculate digital asset prices.
The FTSE Bitcoin Index, which is the underlier for Eurex’s Bitcoin index futures, reflects the settlement price of Bitcoin as determined by the FTSE DAR Reference Price. The new futures contracts are traded in EUR and USD. Liquidity will be supported by order book and over-the-counter liquidity providers.
Vetting methodology to set a standard for digital asset and exchange index inclusion
Arne Staal, CEO of FTSE Russell, a London Stock Exchange Group (LSEG) business: “We are excited for this next step in the expansion of the digital asset ecosystem to meet institutional investor client risk management needs. Our digital asset indices apply the same rigorous index policy and governance framework used with our equity and fixed income products. Perhaps most importantly in this market, in collaboration with DAR, we have created a vetting methodology to set a standard for digital asset and exchange index inclusion, that offers consistent prices reflective of the real investable market to the investor community.”
Doug Schwenk, CEO of DAR, said: “We are pleased to deliver ‘clean’ prices for Eurex’s first Bitcoin index futures by emphasizing accurate price discovery, transparency, and consistency through our Exchange Vetting process and FTSE DAR pricing methodology.”
Michael Peters, CEO of Eurex: “Investors need robust trading and clearing safeguards when engaging in the crypto market. We are looking forward to cooperating with FTSE Russell and Digital Asset Research to jointly deliver superior transparency, consistency, and safeguards to this emerging asset class.”
