The CME Group will be using market data compiled from the Winklevoss twins-founded cryptocurrency exchange Gemini. 

Gemini & CME Group

According to the update published on Aug 8, crypto indices provider CF Benchmarks (formerly called Crypto Facilities) will be adding market data from Gemini. CF Benchmarks operates eight crypto indices, four of which are used as reference rates for CME Group in their cryptocurrency futures product. 

CME Group currently operates a Bitcoin Reference Rate, Bitcoin Real Time Index, Ether-Dollar Reference Rate and Ether-Dollar Real Time index–the latter of which has created speculation that Ethereum futures contracts are on the near horizon. CME Group’s products rely upon the compilation of data which will now include market data pulled from Gemini. 

The crypto indices company claimed that the addition of Gemini to their current pool of Bitstamp, Coinbase, itBit and Kraken will boost the quality of the market data, saying, 

“This ensures the reference rates remain the most accurate and liquid representation of the underlying market for Bitcoin-USD transactions.”

Market Data

CME Group has highlighted the need and importance for proper market data in offering their crypto-related products, which could have prompted CF Benchmarks to make the recent addition. 

Tim McCourt, managing director and global head of equity products and alternative investments at CME Group, said that adding Gemini will contribute to the robustness of their products, 

“We’re pleased with the addition of Gemini data to our bitcoin and ether reference rates and realtime indices. This will capture wider market participation and increase the robustness of the pricing indices at a time when customers are increasingly using our bitcoin futures to trade and manage underlying spot market price risk.”

With bitcoin and cryptocurrency turning towards an institutional audience, the need for secure and vetted market tools has been on the rise. In addition to CME Group and CF Benchmarks, a host of other data providers have been increasing their position in 2019. 

A report in June revealed that half a million traditional traders using Reuters and Bloomberg financial terminals would obtain access to a new index for the top-100 performing cryptocurrencies. The index was labeled “CIX100” and developed by an AI-power crypto provider Cryptoindex.

This story has been updated to reflect that the indices/ref rates underpin major futures products including the CME BTC Futures (and Kraken Futures), but are independent from the CME/Kraken.