With their pricing details published by the International Exchange Group, which owns the NYSE, and the CME group, the choppy waters of bitcoins are likely to be dampened.
In a move that could significantly boost the credibility of bitcoins, Intercontinental Exchange and the CME Group Inc., plans on publishing new pricing data on the digital crypto currency.
From the fourth quarter onwards, the CME Group will begin publishing bitcoin prices once every second during trading days, as well as daily settlement prices based on transactions from several bitcoin spot exchanges.
As per the owner of the Chicago Mercantile Exchange (CME) publishing the data will add “significant credibility to the nascent digital asset market.”
Bitcoins are an emerging Web-based “cryptocurrency” which thanks to its digital nature can be moved around swiftly and anonymously with no need of a central authority. Although a few have championed its cause calling it the money of the future, most have dismissed it saying it is too volatile a currency to invest in.
So as to address this perception of volatility, the CME wants to publish the pricing details. As per Paul Chao, founder and the CEO of Ledger X, an institutional trading and clearing platform for bitcoin options, publishing the data “will lower uncertainty among market participants and would very likely reduce bitcoin’s traditionally high volatility”.
As per Dwijen Gandhi who heads NY Stock Exchange’s indexes, the New York Stock Exchange is in the process of evaluating whether it should include bitcoins aggregates from different exchanges for a daily settlement price.
Currently the settlement price is based only on transaction data Coinbase, a U.S. bitcoin market.
As per Gandhi, the NYSE is likely to soon launch a real-time pricing index to “provide additional transparency and insight into the bitcoin price.”
The CME is planning to publish its own settlement prices at 4 p.m. London time (1500 GMT), which is roughly around the same time the NYSE publishes its settlement data.
As per Gil Luria, a managing director for Wedbush Securities, the availability of more data from major exchange operators could promote the development of bitcoin derivatives contracts.
“The more active exchanges like CME or ICE become, the easier, the more liquid it will become for traditional investors” to trade bitcoin, said Luria.
The ICE did not respond to requests for comments on this matter while the CME declined comment on whether it wants to launch bitcoin futures.
In a related development, Craig Wright, an Australian tech entrepreneur has come forward claiming that he was the one who created the cryptocurrency. Experts were divided over the identity of the elusive person who has so far gone by the name – Satoshi Nakamoto.
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