SIX has launched SIX Reference Rate Crypto and SIX Real-Time Crypto Indices, covering crypto assets Bitcoin (BTC) and Ethereum (ETH). The new SIX Reference Rate Crypto Indices and SIX Real-Time Crypto Indices provide a ‘snapshot’ of the market and its performance and are designed to enable precise pricing, valuation and performance tracking. SIX head of index services, financial information, Christian Bahr, spoke exclusively to BEST EXECUTION on how the indices will help to boost institutional adoption of BTC and ETH, as well as how each utilises pricing data.
SIX is providing two different versions of indices: real-time index, calculated second by second, and hourly rates, volume weighted prices to mitigate fluctuations.
Bahr told BEST EXECUTION: “Both versions leverage a robust methodology involving a meticulous data cleansing that avoids the inclusion of anomalous data, with the pricing data sourced from credible and carefully selected crypto trading venues.”
SIX said the partnership is a “milestone” for the crypto industry in moving towards more robust methodologies, fair and transparent valuation as well as product standardisation.
“The combination of crypto indices and derivatives by the two regulated providers SIX and AsiaNext marks a significant advancement towards the institutional adoption of Crypto Assets,” Bahr added.
“This development provides institutional investors with enhanced clarity and certainty, a notable change from many prior crypto venues that operated without regulatory oversight or supervision,” Bahr told BEST EXECUTION.
The SIX Reference Rate Crypto and SIX Real-Time Crypto Indices are accessible for tracking and analysis through AsiaNext’s institutional crypto derivatives platform, as well as through the data feeds from SIX. AsiaNext, founded by SIX and SBI Digital Asset Holdings, is a digital asset trading venue for institutional investors.
Bahr added: “I am confident that these benchmarks will serve as an indispensable tool for AsiaNext and foster the creation of an ecosystem between derivative exchanges and institutional investors.”
Sudeep Chatterjee, head of product at AsiaNext said: “We are pleased to partner with SIX for an industry benchmark for the crypto market that underscores our commitment to providing institutional clients with robust crypto derivatives trading including standardised performance evaluation and timely risk management to help them make more informed investment decisions and meet regulatory requirements.”
© Markets Media Europe 2023
