CME Group, Inc.

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CME Group, Inc.
CmeGroupLogo.jpg
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)
Twitter @CMEGroup
StockTwits CMEGroup
LinkedIn Profile
Facebook CMEGroup
Website CME Group Homepage
Releases Company News

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.[1]

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Overview

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.[2]

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.[3]

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.[4]

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.[5] 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.[6][7]

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."[8]

References