Compass Financial Technologies, the provider of financial indices based in Switzerland and France, is launching an innovative cryptocurrency index platform. The solutions range from benchmark prices to multi-underlying indices or to strategies aimed at controlling volatility. These new indices comply with European regulations on financial indices (EU BMR).
Compass's digital asset index solutions are already in use by major players such as Coinshares, a leading digital asset manager. To date, over $ 5 billion refer to crypto indices calculated by Compass.
With this new family of indices, Compass bridges the gap between the digital asset ecosystem and traditional financial engineering by offering new tools for investing in the cryptocurrency market. In addition to benchmarks that can be used as price sources in accordance with European regulations on financial indices for ETPs or other investment products, the platform also offers so-called "volatility target" indices based on innovative technology. allowing exposure to the cryptocurrency market while effectively controlling the volatility of its investment.
œThese innovative indices pave the way for new investment vehicles adapted to the risk management of institutional investors, said Guillaume Le Fur, founder and partner of Compass.
As administrator of benchmarks, Compass has developed these new indices within the framework of European regulations on financial indices which guarantee the highest institutional standards in terms of robustness and governance. With the aim of combining the expertise of the digital asset ecosystem and the index financial engineering industry, the members of the committee governing these new indices were chosen from among the users and recognized experts of the crypto sphere and of the financial index industry.
œVolatility is the number one issue when it comes to crypto assets. I am therefore particularly excited about the new family of 'volatility target' indices which will prove to be very useful in effectively controlling risk, added Professor William Knottenbelt, member of the index committee and director of Imperial College. Center for Cryptocurrency Research and Engineering.
