Coinsetter, the Wall Street enterprise Bitcoin exchange, announced yesterday that TeraExchange has added Coinsetter to the Tera Bitcoin Price Index. The TeraBit IndexSM, which is a global benchmark for USD/Bitcoin Swaps, aggregates pricing from a selection of the world’s largest USD-denominated bitcoin exchanges. It is the only bitcoin index that serves as the reference price on a U.S.-regulated trading platform.
“As institutional derivatives markets for bitcoin emerge, the need for spot trading through institutional systems is becoming more important than ever,” said Jaron Lukasiewicz, CEO of Coinsetter. “Our company is focused on supporting traders in these new markets with liquidity that is highly integrated into their professional trading systems.”
Founded in 2012, Coinsetter offers high uptime, low latency trade execution, enterprise bitcoin security by Securicoin, deep liquidity and attractive pricing. The addition of Coinsetter to the TeraBit Index follows significant growth in daily trading volume on the exchange since its full launch in late July 2014.
According to Bitcoinity.org, a website that tracks the flow of Bitcoin through exchanges globally, Coinsetter has become one of the largest USD/BTC exchanges in the world. Over 22,000 BTC were traded through the Coinsetter platform in November, its fourth month since launch. Coinsetter also announced in November that it had opened 10% of the company’s equity for institutionally-capitalized market makers that quote on the exchange through its FIX 4.4 API.
“We are committed to creating a sound marketplace for bitcoin derivative trading, and a robust price index is a critical component of this,” said Leonard T. Nuara, President and co-founder of TeraExchange. “To continue to be adopted as the market standard, the TeraBit Index needs to be reflective of the underlying market, and as such we are excited to include Coinsetter prices.”
Recently, TeraExchange launched the first and only U.S. regulated platform to trade bitcoin derivatives. At the same time, it launched the TeraBit Index which uses a dynamic algorithm that compiles and filters data on a real-time basis from a number of widely utilized global bitcoin exchanges, including New York City-based Coinsetter.
TeraExchange worked closely with the CFTC for over six months as it prepared its self-certification to ensure that the USD/Bitcoin Swap and the TeraBit Index satisfied the rules and regulations of the federal regulator. As a result, other firms have begun to employ the TeraBit Index as a primary pricing benchmark, including the CFTC-regulated North American Derivatives Exchange (NADEX).
“Bitcoin binary options are an exciting way to participate in the bitcoin phenomenon while limiting risk,” said Timothy McDermott, CEO of Nadex. “Our innovative short-term contracts provide a way to trade in a transparent, regulated market where the trader’s exposure is known before any transaction is executed. This is especially valuable given the bitcoin price volatility that has often been experienced in the marketplace.”