Crypto derivatives exchange BitMEX to rejig weights of its indices; Huobi gets a significant weight @TheBlock__ #Bitcoin #Cryptocurrency #Exchanges #BitMEX #bitmex indices #derivatives #derivatives exchange #Gemini #Huobi #index weights #indices weights #itBit

Cryptocurrency derivatives exchange BitMEX is updating weights of its indices on Nov. 22 to ensure the reference prices more closely reflect the market consensus.

Announcing the news on Friday, BitMEX said the update will allow users to trade contracts on indices that are even more optimized for fairness, robustness and accuracy.

The biggest change appears to be including cryptocurrency exchange Huobi with a significant weight for most of its indices. BitMEX indices are composite, meaning they are calculated using data from several exchanges.

Currently, it uses data from 6 exchanges - Binance, Bitstamp, Bittrex, Coinbase, Kraken and Poloniex. On Nov. 22, it will add three more exchanges - Huobi, Gemini and Itbit, making a total of 9 exchanges.

“Updated indices will reflect higher weights for exchanges with higher volumes. This approach will ensure that BitMEX index prices are more representative of the trade price per trade than per exchange,” said BitMEX.

Notably, BitMEX currently does not include Huobi for its indices weights, and on Nov. 22 it will get weight for 7 out of BitMEX's 9 indices. 

Gemini and Itbit, on the other hand, have also been added with minor weights for two of its indices - .BXBT (Minutely Bitcoin Price Index) and .BETH (Minutely Ether Price Index).

The current weights
Source: BitMEX

The updated weights from Nov. 22

Source: BitMEX

The BitMEX “NEXT” indices are a new family of indices. The purpose of these indices is to "display, in advance, the hypothetical prices of BitMEX indices which include any new weights, allowing our traders to experience and better understand the potential impact of forthcoming index changes,” said the exchange.

Now on, BitMEX will update its indices immediately after each quarterly futures expiry, with updates based on three months of constituent exchange volume data, per the announcement.

source https://www.tokentalk.co/The Block/crypto-derivatives-exchange-bitmex-to-rejig-weights-of-its-indices-huobi-gets-a-significant-weight-5dbbd1613b5a709c14f64b6e