By
Tolu Ajiboye
March 8th, 2024
The actual market data that will be provided by CoinRoutes will complement the Cboe’s long-standing tradition of leading the markets with precise index offerings.
Cboe Global Markets, the American company that owns the Chicago Board Options Exchange (CBOE) and the stock exchange operator BATS Global Markets, has unveiled its plans to launch its cryptocurrency index in the second quarter of 2021. Per a report by Coindesk, the Cboe cryptocurrency index plan is the first of the plans by the company to enter the now well-acclaimed world of cryptocurrencies and also comes after a year of an active survey of the space.
The Cboe’s crypto index moves come following a similar announcement by the S&P Dow Jones, another top index services provider who revealed its planned 2021 crypto index debut earlier this month. Per the Coindesk report, the Cboe will be launching a suite of tools in 2021 preceding the official launch of the index in conjunction with CoinRoutes, a software company that provides a suite of algorithmic trading tools for digital assets, FX, and derivatives. Through the partnership, the Cboe will be able to leverage CoinRoutes RealPrice Data Feed and its patent-pending consolidated Best-Bid-Offer (BBO) from all major cryptocurrency exchanges that incorporate the actual cost to trade specific quantities of a digital asset in real-time.
The implementation of the historical price data of the selected crypto asset class as well as the integration of the CoinRoutes features will take place in Q1 2021 according to Catherine Clay, Cboe’s Information Solution Chief. Clay noted that the eventual rollout of the cryptocurrency index which will feature only the large market cap coins will come in three phases. They include the backfilling of the Cboe’s data shop with historical price data, distribution of the real-time price data to clients, and the eventual launch of the index.
“I would guess that in Q2, you’ll start to see actual indices come from this data through our Cboe global index team,” Clay said.
Cboe Crypto Index: a Product Forged by Mutual Alliance
The proposed entry into the cryptocurrency market space through the crypto index with CoinRoutesas a partner is more of a mutual partnership arrangement between trusted partners. The Cboe, ranking as one of the largest options exchange in the US, will benefit CoinRoutes with its large network of clients and partners that will now have access to the latter’s crypto market data.
“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,” said David Weisberger, CEO, CoinRoutes.
The actual market data that will be provided by CoinRoutes will complement the Cboe’s long-standing tradition of leading the markets through precise index offerings. The Head of Global Indices at Cboe Global Markets, Bruce Traan said in a statement:
“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.”
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