BitMex to Roll Out Price Indices Changes by End of November to Measure Market Consensus Better
https://t.me/CryptoWorldAnalysis
BitMEX, one of the largest crypto derivatives exchanges in the world made an announcement on Nov 1st regarding the implementation of major changes to their price indices in order to remove insufficient trade volume.
The new indices will go live on Nov 22, and the exchange stated that the new indices would help traders to trade against the precise reference price which truly reflects the price of underlying assets. The new indices data would be derived from an additional 3 new index constituent exchanges namely Huobi, Gemini and Itbit. The new indices would also weigh exchanges with bigger trading volume higher.
At present BitMEX draws its indices data from 6 exchanges which include Binance, Bitstamp, Bittrex, Coinbase, Kraken, and Poloniex. The exchange believes its new indices represent the trade price per trade instead of per exchange. They explained,
“BitMEX observes the traded volumes of the underlying asset, obtained directly via an API connection, across each exchange in the constituent universe. Proprietary mechanisms are used to identify malformed and anomalous data, which is discarded. The BitMEX index weights are computed using this volume data with the calculation removing constituents with insufficient trade volume.”
The exchange would also showcase its upcoming indices change via hypothetical price projections to help traders get a grasp of the changes which would go live later this month.