TradeBlock, a leading New York-based provider of institutional trading tools for Bitcoin and other cryptocurrencies today announced the launch of its new indices, with this launch it will be expanding the number of digital currencies for which institutional-grade reference rates are offered.
The new indices will follow the same methodology used in the company XBX – Bitcoin and ECX – Ethereum Classic indices, which are widely regarded as a reliable standard for Bitcoin and Ethereum Classic reference rates.
As of this publishing, the following indices will be displayed along the firm’s XBX and ECX indices.
- ETX index (ETH/USD) – Ethereum
- LTX index (LTC/USD) – Litecoin
- XRX index (XRP/USD) – Ripple
- BCX index (BCH/USD) – Bitcoin Cash
- ZCX index (ZEC/USD) – Zcash
Reliable Reference Rates
TradeBlock’s indices are designed to provide reliable and replicable, institutional-quality reference rates for the USD-denominated price of digital currencies. Index values are calculated every second by automatically weighting the price of every index constituent based on real-time and historical trading volume, price deviation in relation to other constituents and trading activity. Constituents that deviate significantly from the observed set are de-weighted in real-time to minimize the impact of anomalies on the index’s rate.
By weighting data points based on the liquidity of each venue and by automatically de-weighting irregular trading activity in real-time, the rates calculated by the indices offer maximum replicability in the spot markets.
The new indices consist of liquid markets quoted in USD & XBT. TradeBlock’s XBX index is used as the XBT/USD conversion rate for crosses quoted in XBT. TradeBlock index methodology is guided by the framework defined by IOSCO’s Principles for Financial Benchmarks.
Performance of TradeBlock’s Index Methodology
The images below display the performance of the new indices during a 4-hour window of increased trading activity observed between 4:00 p.m. and 8:00 p.m. EST on February 20th, 2018.