Introducing New Futures Index Rules

Over the past few months, we have been working diligently to deliver the Futures Enhancement Roadmap announced in July. After the launches of the futures database upgrade and new tiered margin system, we are rolling out a new futures index rules today (Nov 13, 2018).

Redesigned for the soon-launched mark price system, the new rules offer a more pragmatic and objective approach to reflect market prices of different digital assets.

The update will be effective from 11:00 Nov 13, 2018 CET (UTC +1). After the update, the indices may vary slightly due to the changes in constituents. All futures traders and C2C traders who place orders based on index prices are recommended to read this article carefully and manage their risks if necessary.

 

The major updates of futures index computation are:

1. Real-time data retrieval: all data is now retrieved in real time instead of every 6 seconds;
2. Updated exchanges and trading pairs: the list of exchanges and trading pairs involved in the index computation is updated to make sure the index price is objective and reliable;
3. Real-time transaction validation

Constituents and weights for OKEx’s futures indices

 

The new index computation rules are as follows:

1. The latest prices and trading volumes of token pairs are retrieved in real time via the WebSocket APIs of other major exchanges;

2. Any data that has not been updated for 30 minutes will be regarded as invalid (weighted as 0);

3. The prices of all trading pairs quoted in BTC will be converted to USD by multiplying OKEx’s BTC/USD index;

4. The calculation method is based on the number of exchanges with valid data:

• 3 exchanges: a weighting mechanism will be in place; (if the price of an exchange deviates more than ±3% from the average price of other exchanges, the exchange’s price will be replaced by the average price * 0.97 or 1.03 if appropriate)

• 2 exchanges: a weighting mechanism will be in place;

• 1 exchange: the last trade price will be used as the index price directly;

 

Please note that once the new computation rules come into effect, the delivery prices will be calculated with the new rules.

For the original index rules, please see:
https://support.okex.com/hc/en-us/articles/115001762951-Indices-Computation-Rules

As mentioned in the beginning, these new futures index rules are designed to pave way for the scheduled launch of the mark price system. When the new rules are running smoothly, we will release the mark price system as soon as possible.

As always, if you have any questions regarding the new rules, please feel free to contact our support team via support@okex.com for clarification. If you have any comments or suggestions, please email us at futures@okex.com. Your feedback will be highly appreciated.

 

Risk Warning: Trading digital assets involves significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.

 

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