CHICAGO, Dec. 15, 2020 /PRNewswire/ -- Cboe Global
Markets, Inc. (Cboe: CBOE), a market operator and global trading
solutions provider, today announced it has signed an exclusive
licensing agreement with CoinRoutes to disseminate its market data
and create potential derived data and analytics products using its
RealPrice data.
CoinRoutes, a trading software firm based in New York, provides a suite of algorithmic
trading tools for digital assets, FX and derivatives. The company's
innovative RealPrice data feed is a trademarked and patent-pending
consolidated Best-Bid-Offer (BBO) from all major cryptocurrency
exchanges that incorporates the actual cost to trade specific
quantities of a digital asset in real-time. Under the agreement,
Cboe has exclusive rights to use CoinRoutes RealPrice data to
create digital asset indices and to offer custom index creation and
calculations to Cboe clients.
Catherine Clay, Senior Vice
President and Head of Information Solutions at Cboe Global Markets,
said: "Cboe's agreement with CoinRoutes enables us to provide
clients with cryptocurrency market data through Cboe's trusted and
reliable Information Solutions' suite of data, analytics and index
services. Together, we can help bring transparency to the asset
class and its market models by using RealPrice data to potentially
create indices and tools that help clients better understand
cryptocurrencies and encourage their participation in a nascent
market."
Cboe plans to use CoinRoutes data to create digital asset
indices, and to offer custom index creation and calculations to
Cboe clients. By eventually distributing the digital asset index
data across Cboe's real-time index data feeds, the company expects
to initially reach a customer base of at least thousands, with
potential to grow well beyond this number given the global
userbase. Cboe Information Solutions also plans to use real-time
data dissemination of RealPrice data in portfolio construction
tools, pre-trade and cost estimation tools, risk measurement
analytics for lenders and historical data for back-testing.
Bruce Traan, Head of Global
Indices at Cboe Global Markets, said: "Market data is at the core
of Cboe's index ideation and product innovation cycle, and
strategic alliances with software technology firms like CoinRoutes
have the potential to spark the next generation of index solutions
– helping our clients make better-informed trading decisions. We
believe CoinRoutes' consolidated RealPrice BBO is sensitive to fees
and size, thus making it an excellent data set for index
calculation."
Cryptocurrency tick sizes are very small relative to asset
price, resulting in dramatically more price levels within any given
percentage of the best bid and offer. On top of this,
cryptocurrency exchange platform fees vary widely and are much
larger than the tick size. The RealPrice methodology is designed to
be sensitive to both fees and size, aiding in net asset value (NAV)
and index calculations and ultimately providing a more accurate
reflection of the pool of liquidity.
"We believe existing arbitrarily weighted indices that do not
take into account the different fees or actual liquidity available
on crypto exchange platforms do not represent the true cost
of buying or selling a given cryptocurrency," Michael Holstein, Chief Revenue Officer,
CoinRoutes, said. "RealPrice displays executable bid and ask prices
for specific order sizes, which we believe is much more accurate
than assuming what could be executed on each platform."
David Weisberger, CEO,
CoinRoutes, said: "CoinRoutes has built our algorithmic products
for trading both spot cryptocurrency and derivative products upon a
world class market data platform. We are thrilled by the
opportunity to build upon this foundation through our exclusive
licensing agreement with Cboe."
Cboe expects to offer fee liable RealPrice data on its CSMI
Cryptocurrency (CCCY) channel by the end of the first quarter in
2021. To learn more about Cboe Information Solutions and its suite
of data, analytic, index and execution services, visit
www.cboe.com/isg.
About Cboe Global Markets, Inc.
Cboe Global Markets (Cboe: CBOE) provides cutting-edge trading
and investment solutions to market participants around the world.
The company is committed to defining markets through product
innovation, leading edge technology and seamless trading
solutions.
The company offers trading across a diverse range of products in
multiple asset classes and geographies, including options, futures,
U.S., Canadian and European equities, exchange-traded products
(ETPs), global foreign exchange (FX) and volatility products based
on the Cboe Volatility Index® (VIX® Index), recognized as
the world's premier gauge of U.S. equity market volatility.
Cboe's subsidiaries include the largest options exchange and the
third largest stock exchange operator in the U.S. In addition, the
company operates one of the largest stock exchanges by value traded
in Europe, and owns EuroCCP, a
leading pan-European equities clearing house. Cboe also is a
leading market globally for ETP listings and trading.
The company is headquartered in Chicago with a network of domestic and global
offices across the Americas, Europe and Asia, including main hubs in New York, London, Kansas
City and Amsterdam. For
more information, visit www.cboe.com.
Media
Contacts
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Analyst
Contact
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Angela
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Tim
Cave
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Debbie
Koopman
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+1-646-856-8734
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+44 (0)
7593-506-719
|
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+1-312-786-7136
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atu@cboe.com
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tcave@cboe.com
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dkoopman@cboe.com
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CBOE-OE
CBOE-O
Cboe® Cboe Volatility Index®, VIX®, FLexible EXchange®, FLEX®
and Cboe Global Markets® are registered trademarks of Cboe
Exchange, Inc. All other trademarks and service marks are the
property of their respective owners.
Cboe Global Markets, Inc. and its affiliates do not recommend
or make any representation as to possible benefits from any
securities, futures or investments, or third-party products or
services. Cboe Global Markets, Inc. is not affiliated with
CoinRoutes. Investors should undertake their own due
diligence regarding their securities, futures, digital assets and
investment practices. This press release speaks only as of this
date. Cboe Global Markets, Inc. disclaims any duty to update the
information herein.
Nothing in this announcement should be considered a
solicitation to buy or an offer to sell any securities or futures
in any jurisdiction where the offer or solicitation would be
unlawful under the laws of such jurisdiction. Nothing contained in
this communication constitutes tax, legal or investment advice.
Investors must consult their tax adviser or legal counsel for
advice and information concerning their particular
situation.
Cboe Global Markets, Inc. and its affiliates, to the maximum
extent permitted by applicable law, make no warranty, expressed or
implied, including, without limitation, any warranties as of
merchantability, fitness for a particular purpose, accuracy,
completeness or timeliness, the results to be obtained by
recipients of the products and services described herein, or as to
the ability of CoinRoutes data to track the performance of its
strategy, and shall not in any way be liable for any inaccuracies
or errors. Cboe Global Markets, Inc. and its affiliates have not
calculated, composed or determined the constituents or weightings
of the securities or digital assets that comprise the CoinRoutes
data and shall not in any way be liable for any inaccuracies or
errors.
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SOURCE Cboe Global Markets, Inc.