CME Group, Inc.
|CME Group, Inc.|
|Founded||July 12, 2007 (through Chicago Mercantile Exchange Holdings and CBOT Holdings merger)|
|Headquarters||Headquarters: 20 South Wacker Drive, Chicago, IL 60606 (plus other CME Group offices domestic and international)|
|Key People||Terrence A. Duffy, Chairman and CEO; Bryan Durkin, President|
|Products||Interest rate, equity index, foreign currency, commodity futures and options and alternative investments (e.g. weather, real estate)|
|Website||CME Group Homepage|
CME Group, Inc., based in Chicago, is the world's largest derivatives exchange, offering a broad array of derivatives contracts, clearing services, market data and indexes products. The publicly traded company had a market cap of $54 billion, as of March 2018.
CME Group launched a bitcoin futures contract on December 18, 2017, trading on the Globex platform and cleared via ClearPort. The futures are cash-settled and based on the CME CF Bitcoin Reference Rate, a once-a-day reference rate of the U.S. dollar price of bitcoin. CME and Crypto Facilities have calculated and published the BRR since November 2016. Bitcoin prices from Bitstamp, Coinbase, itBit and Kraken were being used in August 2019 when CME tweeted that it would add bitcoin prices from Gemini starting August 30.
On February 4, 2019 Kraken purchased Crypto Facilities for "nine figures." In an indication that the deal had been underway for some time, Powell told Fortune that the companies had already integrated their back-end operations of Crypto Facilities allowing customers of both companies to trade on a single platform. The transaction was approved by the Crypto Facilities' regulator, the U.K. Financial Conduct Authority. Powell also said that the purchase had been funded from Kraken's own resources.
In February 2019, the CME Group announced that in the first quarter of 2019, it set a new record for total bitcoin futures contracts traded. The record high for total contracts traded in Q1 of 2019 was 18,338 contracts as of February 19th, the equivalent of 91,960 BTC or $360 million based on the price of bitcoin at the time. The previous record was set on November 20, 2018. On April 4, 2018, the CME Group Tweeted that the firm had experienced a "record trading day" on bitcoin futures; according to a chart accompanying the Tweet, 22,542 bitcoin futures had traded on April 4 alone, which is equivalent to 112,710 bitcoins.
The CME Group saw a record high number of bitcoin futures contracts traded, as well as the highest number of customer accounts trading bitcoin futures in its history in May 2019. The company released a statement saying, "the number of unique accounts continues to grow showing that the marketplace is increasingly using BTC futures to hedge bitcoin risk and/or access exposure."
On June 17, 2019, the CME Group's open interest for bitcoin futures grew by a record 643 contracts in a day, reaching an all-time high of 5,311 contracts. Based on bitcoin's price at the time, this equated to over $250 million worth of contracts.
The CME Group partnered with Crypto Facilities Ltd in May of 2018 to launch the CME CF Ether-Dollar Reference Rate, which provides a daily benchmark price in U.S. dollars at 4 p.m. London time, and CME CF Ether-Dollar Real-Time Index, which allows users access to a real-time Ether price in U.S. dollars. Both reference rates will be calculated by Crypto Facilities based on transactions and order book activity from Kraken and Bitstamp.
The CME Group released a notice that it was changing its reference rate and index tied to Ether. The statement said that itBit would provide pricing data. Someone close to the matter told The Block that this move indicated preparation for Ether futures.
- CME Group Inc.. Yahoo Finance.
- CME Group Self-Certifies Bitcoin Futures to Launch Dec. 18. CME Group.
- Tweet. Twitter.
- Crypto Exchange Kraken Raises $100 Million, Acquires London Futures Firm. Fortune.
- CME’s bitcoin futures are off to a record-breaking start this year. The Block.
- CME Group reports “record trading day” on bitcoin futures. The Block.
- CME Bitcoin futures had a record trading day on April 4, hitting an all-time high volume of over 22.5K contracts (112.7K equivalent bitcoin), surpassing previous record of over 18.3K (64.3K equivalent bitcoin) on February 19. More #Bitcoin futures. $BTC_F. Twitter.
- CME bitcoin futures trading clocks in a number of new records in May. The Block.
- CME: Open Interest in Bitcoin Futures Contracts Hit All-Time High. Cointelegraph.
- Gemini Exchange Added to CME Group’s Pioneering Crypto Benchmarks. Cointelegraph.
- CME Group and Crypto Facilities Launch Ether Reference Rate and Ether Real-Time Index. CME Group.
- CME Group set to alter its reference rate for Ether, and it could mean the exchange is getting ready for futures. The Block.
- CME CF Ether-Dollar Reference Rate & CME CF Ether-Dollar Real-Time Index. CME Group.