Singapore Exchange Ltd (SGX) has announced plans to launch two new cryptocurrency indices.
The iEdge Bitcoin Index, and the iEdge Ethereum Index, will bring certified price referencing to the Asia region.
Head of Index Services at SGX, Simon Karaban said the lack of transparency in the cryptocurrency space has left a huge gap in the marketplace. He believes the Bitcoin and Ethereum indices will go some way towards plugging that gap.
What’s more, Karaban emphasized the positive effect this will have on the industry as a whole. After all, regulators will be much more open to cryptocurrency derivative products if they operate on a regulated exchange.
“It’s important to bring transparency to this segment of the market. In addition, regulators in Asia are more receptive to creation of derivatives products if they’re on regulated exchanges.”
SGX have enlisted the help of UK-based cryptocurrency market data specialists CryptoCompare in this venture.
Using data provided by CryptoCompare, the iEdge indices will calculate an aggregated price for Bitcoin and Ethereum against the USD.
By using an Exchange Benchmark rating system, the iEdge indices derive price data only from exchanges rated AA and A. In addition, a weighting system gives more emphasis to the top AA-rated exchanges.
“The Benchmark adoptsan innovative ranking methodology that utilises a combination of qualitative and quantitative metrics and assigns a AA -F grade to help identify the lowest risk venues in the industry. iEdge Cryptocurrency Indices