Cboe to launch crypto indices following major data deal with CoinRoutes

The partnership with CoinRoutes will see Cboe roll out indices for digital assets using the RealPrice market data feed.

Exchange operator Cboe Global Markets has confirmed plans to create crypto indices early next year after signing a major licensing agreement with trading software provider CoinRoutes.

Through the licensing agreement Cboe said it will use the RealPrice data feed from CoinRoutes to establish digital asset indices and offer custom index creation and calculations to clients.

CoinRoutes’ RealPrice consolidated best-bid-offer cryptocurrency market data feed incorporates real-time actual cost to trade specific quantities of digital assets.

Cboe will also use RealPrice for portfolio construction tools, pre-trade and cost estimation tools, risk measurement analytics for lenders, and historical data for back-testing through its Cboe information solutions business arm.

“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,” said Catherine Clay, senior vice president and head of information solutions at Cboe.

Cboe said it expects to offer RealPrice data on its CSMI Cryptocurrency (CCCY) channel by the end of the first quarter in 2021.

“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,” said Michael Holstein, chief revenue officer, CoinRoutes. “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.”

There have been several developments in the institutional cryptocurrency infrastructure space in the last few months. In October, institutional digital asset exchange operator Archax raised $8 million in funding after it became the first Financial Conduct Authority  (FCA) regulated digital securities exchange in August.

For post-trade and crypto custody, Northern Trust and Standard Chartered recently collaborated on an institutional-grade custody solution for cryptocurrencies. The banks expect the platform to launch in 2021 subject to FCA registration.