Digital asset market data and index provider CryptoCompare has received authorisation from the Financial Conduct Authority (FCA) to operate as a benchmark administrator.
The authorisation was awarded to CryptoCompare’s data and index subsidiary CC Data Limited, allowing CryptoCompare to issue benchmarks for financial instruments, financial contracts and the measurement of fund performance.
The market data provider’s proprietary collection of benchmarks for pricing digital assets, CCCAGG, is built on 24-hour, volume-weighted average calculation, time-penalty factor and outlier methodology.
FCA authorisation allows service providers to design regulated financial products that are supported by CryptoCompare’s suite of industry-standard digital asset indices, including investment product referencing indices, contract settlement pricing, portfolio asset allocation and reference rates.
Charles Hayter, CEO of CryptoCompared, explains: “As digital asset markets continue to grow, it is vital that investors can access highly reliable and accurate benchmarks based upon market-leading research and methodologies.”
He adds: “Over the last seven years, our pioneering standards have brought rigour and accuracy to this flourishing sector. I am delighted that CryptoCompare has now achieved FCA authorisation, creating new avenues for institutional and retail investors to gain exposure to our standard-setting digital asset indices.”
