Provides the transparency and confidence needed to enable institutional-grade derivative products
TrueDigital Holdings (“TDH”), a leading developer of institutional-grade digital asset trading solutions, has partnered with 10 liquidity providers and contributors, including Genesis Global Trading, XBTO Group, Circle, DV Chain, Hehmeyer and Altonomy to create the first market maker based Bitcoin and Ether pricing indices.
The launch of the trueDigitalBitcoin and Ether reference rates sets a new standard for the digital asset market and allays common concerns about the robustness and lack of transparency inherent in retail exchange-based bitcoin pricing composites.
The trueDigital reference rates, comprised of bid and offer pricing from top cryptocurrency market makers include automated anti-manipulation safeguards such as outlier detection and price banding. Robust policies surveil potential manipulation and review the contributing sources on an ongoing basis in line with the IOSCO based methodology. Investors are given the most accurate representation of actionable liquidity within the institutional digital asset markets.
“The digital asset market is still young, especially for financial institutions,” said Michael Moro of Genesis Global Trading. “trueDigital is methodically building the components needed to evolve this ecosystem and make it habitable for firms seeking exposure to digital assets. OTC indices are the next leap forward in the maturation of the market.”
“While benchmarks across all asset classes are the subject of more scrutiny than ever before, regulators have been especially meticulous, and rightfully so in their examinations of digital asset indices,” said Philippe Bekhaziof XBTO Group a significant liquidity provider in the digital space. “By working with trueDigital on this index, we’ll solve a critical question for all institutions and enable unprecedented growth in the digital assets markets.”
“trueDigital understands the importance of a robust, credible and transparent bitcoin benchmark,” said Garrett See of DV Chain. “These indices will become an industry standard as institutions continue to join the digital asset market and seek out best-in-class solutions to fix derivatives and build pricing models.”
“The approach that trueDigital has taken to establish institutional-quality benchmarks comes at a great time for the industry, delivering much-needed confidence to what remains a relatively young but important sector of the global financial marketplace,” said David Nuelle of Hehmeyer.
“One of the core value propositions of these assets, decentralization, has also made benchmarking a herculean task,” said Ricky Li at Altonomy. “By sourcing institutional pricing data from all over the world, trueDigital is establishing the first global benchmark for these digital assets. Their rigor and focus on building institutional-grade indices should be a boon to regulators across countless jurisdictions.”
“We’re delighted to have the support of so many leading digital asset market makers in developing this key institutional benchmark,” said Nick Goodrich, Head of Business Development at TDH. “Not only will it provide more representative and accurate pricing, but it will provide the level of transparency needed to address ongoing market and regulatory concerns.”
Formed in March 2018, TDH intends to launch a regulated, enterprise derivatives marketplace for digital assets.
Euro zone factories buzzing in February as demand soars
By Jonathan Cable
LONDON (Reuters) – Euro zone factory activity raced along in February thanks to soaring demand, a survey showed on Monday, although the burst of business led to a shortage of raw materials and a spike in input costs.
Restrictions imposed across the continent to try to quell the spread of the coronavirus have shuttered vast swathes of the bloc’s dominant services industry, meaning it has fallen to manufacturers to support the economy.
IHS Markit’s final Manufacturing Purchasing Managers’ Index (PMI) jumped to a three-year high of 57.9 in February from January’s 54.8, ahead of the initial 57.7 “flash” estimate and one of the highest readings in the survey’s 20-year history.
An index measuring output, which feeds into a composite PMI due on Wednesday that is seen as a good guide to economic health, climbed to 57.6 from 54.6, well above the 50 mark separating growth from contraction.
“Manufacturing is appearing as an increasingly bright spot in the euro zone’s economy so far this year,” said Chris Williamson, chief business economist at IHS Markit.
“The solid manufacturing expansion is clearly helping to offset ongoing virus-related weakness in many consumer-facing sectors, alleviating the impact of recent lockdown measures in many countries and helping to limit the overall pace of economic contraction.”
A Reuters poll last month showed the bloc was in a double dip recession and that the economy would contract 0.8% this quarter after shrinking 6.9% in 2020 on an annual basis. [ECILT/EU]
Rocketing demand for manufactured goods pushed factories to increase staffing levels for the first time in nearly two years.
But lockdown measures disrupted supply chains and factories struggled to obtain raw materials, leading to a big increase in delivery times.
“The growth spurt has brought its own problems, however, with demand for inputs not yet being met by supply. Shipping delays and shortages of materials are being widely reported, and led to near-record supply chain delays,” Williamson said.
Those shortages allowed suppliers to hike their prices at the fastest rate in almost a decade. The input prices PMI bounced to 73.9 from 68.3.
(Reporting by Jonathan Cable; Editing by Hugh Lawson)
Strong exports lift German factory activity to three-year high in February – PMI
BERLIN (Reuters) – Higher demand from China, the United States and Europe drove growth in German factory activity to its highest level in more than three years in February, brightening the outlook for Europe’s largest economy, a survey showed on Monday.
IHS Markit’s Final Purchasing Managers’ Index (PMI) for manufacturing, which accounts for about a fifth of the economy, jumped to 60.7 from 57.1 in January.
It was the highest reading since January 2018 and came in slightly better than the initial “flash” figure of 60.6.
Factories have been humming along during the pandemic on higher foreign demand, helping the German economy avoid a contraction in the last quarter of 2020 and offsetting a drop in consumer spending amid a partial lockdown to contain COVID-19.
Many manufacturers reported higher demand from Asia, especially China, as well as the United States and European countries, with export sales posting their biggest increase since December 2017, the survey showed.
Phil Smith, Principal Economist at IHS Markit, said supply chain pressures intensified as more firms reported delays than ever before in nearly 25 years of data collection.
“There looks to be further upward pressure on inflation in the German economy from supply bottlenecks and a subsequent surge in manufacturing input costs,” Smith noted.
The survey suggested that supply disruption is making it more difficult to replenish stocks, which could complicate production in the coming months, he cautioned.
“Nevertheless, the overriding sentiment for the longer-term outlook is optimism, with a record number of manufacturers expecting to see output rise over the next 12 months.”
Still, economists expect the economy to shrink in the first quarter of this year due to a stricter lockdown, which has shut most shops and services since mid-December, and freezing temperatures that slowed construction activity in February.
(Reporting by Michael Nienaber; Editing by Hugh Lawson)
Tech demand drives Asia’s factory revival, China’s slowdown puts dampener
By Leika Kihara
TOKYO (Reuters) – Solid demand for technology goods drove extended growth in Asia’s factories in February, but a slowdown in China underscored the challenges facing the region as it seeks a sustainable recovery from the shattering COVID-19 pandemic blow.
The vaccine rollouts globally and pick-up in demand provided optimism for a vast number of businesses that had grappled for months with a cash-flow crunch and falling profits.
In Japan, manufacturing activity expanded at the fastest pace in over two years while South Korea’s exports rose for a fourth straight month in February, suggesting the region’s export-reliant economies were benefiting from robust global trade.
On the flip side, China’s factory activity grew at the slowest pace in nine months in February, hit by a domestic flare-up of COVID-19 and soft demand from countries under renewed lock-down measures.
“The big picture, supported by the latest figures, is that China’s growth remains fairly robust, but it is slowing from previously very rapid rates,” Mark Williams, chief Asia economist at Capital Economics, wrote in a note to clients.
China’s was the first major economy to lead the recovery from the COVID-19 shock, so any signs of prolonged cooling in Asia’s engine of growth will likely be a cause for concern.
With the global rebound still in early days, however, analysts say the outlook was brightening as companies increased output to restock inventory on hopes vaccine rollouts will normalise economic activity.
“The recovery in durable-goods demand is continuing, which is creating a positive cycle for manufacturers in Asia,” said Shigeto Nagai, head of Japan economics as Oxford Economics.
“As vaccine rollouts ease uncertainties over the outlook, capital expenditure will gradually pick up. That will benefit Japan, which is strong in exports of capital goods,” he said.
China’s Caixin/Markit Manufacturing Purchasing Managers’ Index (PMI) fell to 50.9 in February, the lowest level since last May but still above the 50-mark that separates growth from contraction.
That was in line with official manufacturing PMI that showed factory activity in the world’s second-largest economy expanded in February at the weakest pace since May last year.
Activity in other Asian giants remained brisk.
The final au Jibun Bank Japan Manufacturing Purchasing Managers’ Index (PMI) jumped to 51.4 in February from the prior month’s 49.8 reading, marking the fastest expansion since December 2018, data showed on Monday.
In South Korea, a regional exports bellwether, shipments jumped 9.5% in February from a year earlier for its fourth straight month of increase on continued growth in memory chip and car sales.
The Philippines, Indonesia and Vietnam also saw manufacturing activity expand in February, a sign the region was gradually recovering from the initial hit of the pandemic. (This story corrects to add name of institution linked to analyst comment in paragraph 5)
(Reporting by Leika Kihara; Editing by Shri Navaratnam)
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