Leading cryptocurrency market data and index provider CryptoCompare has received authorization from the United Kingdom’s markets regulator, the Financial Conduct Authority (FCA), to operate as a Benchmark Administrator.
According to a press release shared with CryptoGlobe, the FCA authorization was awarded to CryptoCompare’s data and index subsidiary CC Data Limited, and allows the firm to issue benchmarks for financial instruments and measuring fund performance.
CryptoCompare’s proprietary family of benchmarks for pricing digital assets, CCCAGG, is based on a 24-hour volume-weighted average calculator, time-penalty factor and outlier methodology, according to the press release, and covers over 500 liquid asset pairs.
The firm’s CEO Charles Hayter said that as the cryptocurrency market continues to grow it’s vital that “investors can access highly reliable and accurate benchmarks which are based upon market-leading research and methodologies,” and added:
Over the last seven years, our pioneering standards have brought rigour and accuracy to this flourishing sector. I am delighted that CryptoCompare has now achieved FCA authorisation, creating new avenues for institutional and retail investors to gain exposure to our standard-setting digital asset indices.
Hayter noted that CryptoCompare’s FCA authorization will also allow service providers to create regulated financials products underpinned by the firm’s suite of digital asset indices. This could include the “creation and issuance of investment product referencing indices; reference rates, contract settlement pricing, portfolio asset allocation and the measurement of fund performance.”
Currently, CryptoCompare’s indices are used by various globally recognized clients, the press release added, and offer comprehensive market valuation benchmarks that power leading cryptoassets financial products.
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