CME CF BRR and BRTI Oversight Meeting Minutes

  • 2 Feb 2017
  • By CME Group

Agenda for the Oversight Committee meeting for BRR and BRTI to be held on 1st December 2016.

  1. Formalities:
    • Apologies for absence
    • Quorum
    • Introduction of Committee Members
    • Conflicts of Interest
  2. Documentation Ratification
    • Oversight Committee charter
    • Practice standards
    • BRR methodology
    • BRTI methodology
    • Conflicts of interest policy
  3. Constituent Exchanges
    • Criteria
    • Approval process
  4. BRR update
  5. Frequency of meetings
  6. Any Other Business

Minutes of the Oversight Committee meeting for BRR and BRTI held via conference call on 1st December 2016.

1. Formalities

Attendance

Name

Role

Attendance

Gavin Lee – CME

Chair

On phone

Payal Lakhani – CME

Member

On phone

Mr Timo Schlaefer – Crypto Facilities Ltd

Member

On phone

Mr Andreas M. Antonopoulos – Independent Consultant

Member

On phone

Mr Michael Moro – Genesis Global Trading

Member

On phone

Mr William Knottenbelt – Imperial College London

Member

On phone

Quorum

Quorum met – meeting began at 15:00 London time on 01 December 2016. Mr Lee opened the meeting with an introduction and laid out the objectives of the Oversight Committee.

Introduction of Committee Members

Gavin Lee – CME Group
Head of Benchmark Services at CME Group. Responsible for growing the benchmark business.

Payal Lakhani – CME Group
Director of Benchmark Services at CME Group. Involved in the launch of the bitcoin products.

Mr Timo Schlaefer – Crypto Facilities Ltd
Crypto Facilities (CF) have been developing the BRR and BRTI indices. They are the calculation agent and index administrator.

Mr Andreas M. Antonopoulos – Independent Consultant Independent consultant on Bitcoin Technologies

Mr Michael Moro – Genesis Global Trading
CEO of Genesis Global Trading which is a OTC market maker of digital currencies including Bitcoin

Mr William Knottenbelt – Imperial College London
Director of Crypto Currency Research at Imperial College London. Authored the whitepaper that analysed the methodology for calculating the BRR and BRTI indices or the U.S. Dollar price of bitcoin

Conflicts of Interest

Updates for the Conflicts of Interest Register were noted


2. Documentation Ratification

It was asked if members of the Oversight Committee had received, read and were in agreement with the following documents:

  • Oversight Committee charter
  • Practice standards
  • BRR methodology
  • BRTI methodology
  • Conflicts of interest policy

All members had read the documents and were in agreement with the contents. The 6 members agreed to abide by the Oversight Committee charter.

There were no further questions regarding the documents.


3. Constituent Exchanges

The committee would set criteria for selecting constituent exchanges. These criteria would be applied to the existing 6 exchanges retrospectively. The criteria would need to be equal, fair and have the ability to be consistently applied so that the committee could bring new exchanges to the calculation process and manage them effectively.

Mr Timo Schlaefer proposed a draft criterion as a basis for the selection process.


4. BRR update

The BRR rate went live on 14th November 2016.

  • CF confirmed that a price had been published to the market every day.
  • The rate has been calculated and distributed at 16:01 London time on the 17 occasions to 30th November 2016.
  • CF has not had the contingency rules kick in

5. Frequency of meetings

It was agreed that the Oversight Committee will meet quarterly with ad hoc meetings as required. The next oversight meeting will be scheduled for early March 2017.


6. Any Other Business

The committee agreed that Disclaimers should be visible on both the methodology as well as the website.


Actions

  • A finalized criteria for the selection and behaviour the Constituent Exchanges will be circulated by CF and be posted to the CME/CF website.
  • CME will schedule the date of the next oversight committee meeting for early March 2017 and circulate the details
  • CME would add the disclaimers to the website

The meeting was bought to a close at 16:00 London time

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