These Practice Standards set out the responsibilities of each of:
The BRR is a daily reference rate of the U.S. Dollar price of one bitcoin as of 4:00 p.m. London time. It is based on trade execution data observed at various Constituent Exchanges and provided by the Constituent Exchanges to the Calculation Agent in accordance with the policies and procedures of, and in the format prescribed by, the Calculation Agent from time to time. Calculation details are more particularly described in the BRR Methodology Guide.
The BRTI is a real time index of the U.S. Dollar price of one bitcoin. It is representative of current bids and offers of market participants to buy or sell bitcoin on major bitcoin trading venues around the world. It is geared towards timeliness and represents an unbiased estimator of the instantaneous bitcoin price. Calculation details are more particularly described in the BRTI Methodology Guide.
The Administrator will have primary responsibility for all of the following in respect of Bitcoin Pricing Products:
The Calculation Agent will be responsible for:
The Data Licensor/Distributor will be responsible for:
The Oversight Committee is responsible for reviewing and providing challenge on all aspects of the methodology and calculation process and providing effective oversight of the Administrator as it relates to the Bitcoin Pricing Products. It is also responsible for assessing potential conflicts relating to the functioning and operation of the Bitcoin Pricing Products or any associated governance framework, policy or control process in accordance with the Bitcoin Pricing Product Conflicts of Interest Policy.
The Constituent Exchanges will make both trade data and order book data available to the Calculation Agent in accordance with the policies and procedures of, and in the format prescribed by, the Calculation Agent from time to time. The Constituent Exchanges shall each have controls and processes in place to protect against, amongst other things, market abuse (including, without limitation, attempted manipulation of the Bitcoin Pricing Products).
The Constituent Exchanges are also responsible for making the relevant data available to the Calculation Agent at the relevant times and for ensuring that the data accurately represents the prices that were available / traded on their trading venues at the relevant times.
The Bitcoin Pricing Product Team is responsible for the orderly production of the Bitcoin Pricing Products. It will monitor, administrate and keep up-to-date the software and hardware infrastructure that sources data from Constituent Exchanges, calculates the BRR and BRTI and disseminates the same to the Data Licensor/Distributor.
In the event where unusual and extreme circumstances occur which could jeopardize the ability of the Bitcoin Pricing Products to track the underlying value of Bitcoin, or where conflicting definitions of Bitcoin exist, the Administrator shall be responsible for recommending the necessary actions and responses to ensure the relevance and integrity of the Bitcoin Pricing Products.
Examples of unusual and extreme circumstances may include, but are not limited to:
Note that large movements and/or high volatility of the price of bitcoin generally do not constitute an unusual or extreme circumstance on their own, provided that the market data published by Constituent Exchanges generally track the underlying value of Bitcoin.
Prior to taking action, the Administrator must confirm that the current conditions are unusual and extreme and the taking of the proposed specific action or actions are necessary and prudent to maintain the relevance and integrity of the Bitcoin Pricing Products and receive the joint approval from the CF Member of the Oversight Committee and at least one of the CME Members of the Oversight Committee or their respective designee.
After taking one or more actions, the Administrator must notify the Oversight Committee within six hours.
The Administrator will timely publish summaries of all actions taken under this section of the Practice Standards on the Administrator’s website.
Stakeholders may submit any complaints or concerns regarding Bitcoin Pricing Products by emailing firstname.lastname@example.org.
Representatives of the Bitcoin Pricing Products Team will receive notification of any complaint or concern and will investigate the allegations in accordance with the following procedures:
For further information on the Bitcoin Pricing Products Practice Standards, please contact:
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