The derivatives exchange operator Cboe Global Markets has struck an exclusive deal with CoinRoutes, a trading software firm, to launch specialized crypto indexes.
The deal would enable Cboe to get the rights of the CoinRoutes Realprice Best Bid Offer solution that is a data aggregator for cryptocurrency prices across various trading exchanges.
Cboe partners with CoinRoutes
The company would utilize the data to debut in the indexes market and provide indexes for the digital currencies markets next year. A host of companies are eyeing the crypto data and indices space. There has been an increased interest in cryptocurrency trading in recent times; as the traditional investors and traders align their efforts towards cryptocurrencies, crypto data products can grow exponentially. As mainstream financial companies venture into the digital currencies market, the data can be more streamlined and reliable as the markets mature.
CoinRoutes provides algorithmic trading tools for digital currencies and assets along with derivatives and foreign exchange. Its trademark Realprice data feed would be accessible to Cboe, which the company would use to create custom indexes and asset accounting for Cboe clients.
The head of Information Solutions and Senior Vice President at Cboe, Catherine Clay, said that CoinRoutes data is highly reliable and hard to replicate its data set. “It is an executive data point versus a theoretical data point — exactly the type of transparent and action data that informs trading decisions in different asset classes.” She added that the data is used for staring at the best possible rates and is highly efficient. She further said that Cboe would use the data to help the clients for building their portfolio and focus on other pre-trade processes. In the long run, the indexes can be used for trading.
Arbitrary indices do not provide a clear picture as they do not consider fees and liquidity on crypto exchanges, thus not representing the right crypto buying cost. CoinRoutes Chide Revenue Officer Michael Holstein said that the Realprice are helpful in determining an executable bid and the right ask prices for specific order size that aid in accurate decision making rather than an approximate or arbitrary figure of what can be executed on various crypto exchanges.
While there is a huge revenue potential for the company in the data market, it is also extremely important to increase the legitimacy and acceptance of data indexes by attracting higher participation.
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