FTSE Russell introduces reference price for digital asset market
11 November 2020 US
Image: alphaspirit/AdobeStock
FTSE Russell, a global multi-asset index, analytics and data provider, part of the London Stock Exchange Group, in partnership with Digital Asset Research (DAR) has launched reference price files for the digital asset market.
The partnership represents a step forward in meeting investor needs for accurate price discovery, transparency and consistency in the digital asset market.
Currently, there are 182 blockchain-based benchmark and non-benchmark assets included in the FTSE DAR Reference Price files listed across 12 fully vetted and 19 watchlist digital asset exchanges, FTSE Russell explained.
According to the analytics and data provider, this represents approximately $400 billion in market capitalisation, over 90 percent of total digital asset market capitalisation.
FTSE Russell and DAR have worked to help address current investor challenges in the digital asset space including limited oversight, inconsistent market practices and unreliable issuer pricing.
The FTSE DAR Reference Price – Benchmark Assets, has been designed to meet the requirements of EU Benchmark regulation.
It is set to offer accurate prices for digital assets, providing scrutiny that enables investors to choose safer venues and promote best practices among market participants.
James Nevin, managing director, head of data solutions, information services division at the London Stock Exchange Group, commented: “We are excited to enter the rapidly evolving digital asset market to directly address the concerns of our global investor clients.”
Nevin explained: “We have applied the same policy and governance framework we use in our equity and fixed income products, in collaboration with DAR, to the vetting methodology of digital asset exchanges and assets with the goal of setting consistent prices for the investor community.”
Doug Schwenk, chairman of DAR, said: “Our vetting of both the prices and assets is carried out with the highest attention to governance and compliance in the market. We’re able to identify and closely track ongoing activity by exchanges and participants.”
“When thinking about the investability of digital assets, understanding the sufficient liquidity, potential vulnerabilities, and regulatory and compliance measures are all critical,” Schwenk added.
The partnership represents a step forward in meeting investor needs for accurate price discovery, transparency and consistency in the digital asset market.
Currently, there are 182 blockchain-based benchmark and non-benchmark assets included in the FTSE DAR Reference Price files listed across 12 fully vetted and 19 watchlist digital asset exchanges, FTSE Russell explained.
According to the analytics and data provider, this represents approximately $400 billion in market capitalisation, over 90 percent of total digital asset market capitalisation.
FTSE Russell and DAR have worked to help address current investor challenges in the digital asset space including limited oversight, inconsistent market practices and unreliable issuer pricing.
The FTSE DAR Reference Price – Benchmark Assets, has been designed to meet the requirements of EU Benchmark regulation.
It is set to offer accurate prices for digital assets, providing scrutiny that enables investors to choose safer venues and promote best practices among market participants.
James Nevin, managing director, head of data solutions, information services division at the London Stock Exchange Group, commented: “We are excited to enter the rapidly evolving digital asset market to directly address the concerns of our global investor clients.”
Nevin explained: “We have applied the same policy and governance framework we use in our equity and fixed income products, in collaboration with DAR, to the vetting methodology of digital asset exchanges and assets with the goal of setting consistent prices for the investor community.”
Doug Schwenk, chairman of DAR, said: “Our vetting of both the prices and assets is carried out with the highest attention to governance and compliance in the market. We’re able to identify and closely track ongoing activity by exchanges and participants.”
“When thinking about the investability of digital assets, understanding the sufficient liquidity, potential vulnerabilities, and regulatory and compliance measures are all critical,” Schwenk added.
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