Marex Launches First Institutional QIS Indices on Digital Assets
Marex has launched the first Institutional Quantitative Investment Strategies (QIS) indices on digital assets with Marex Crypto Volatility Carry Indices. The launch expands Marex’s Institutional QIS offering and shows its priority on connecting traditional finance with digital assets.
Bitcoin and Ethereum Indices
The first family of Marex Crypto Volatility Carry Indices includes two indices, one stressed on Bitcoin and the other on Ethereum. The strategies will capture the risk premium between implied and realised volatility through a systematic, rules-based approach. Marex developed the indices by applying its research, structuring, and trading capabilities to the crypto asset class.
Extending Institutional QIS
Quantitative Investment Strategies have always given institutional investors systematic access to risk premia across established asset classes. Marex is extending this approach to digital assets. It is offering a new source of risk premia to traditional institutional investors and crypto-native allocators. Its vaster Institutional QIS business is fixated on asset classes and risk premia where the firm has specialist expertise.
Institutional Market Infrastructure
Marex uses listed options and perpetual futures on Bitcoin and Ethereum through Coinbase to support the Crypto Volatility Carry Indices. The firm selected Coinbase for its institutional-grade infrastructure, liquidity, and ability to support indices risk administration around the clock.
MSCI
Marex has selected MSCI, through Compass Financial Technologies, as the independent index calculation agent and index administrator. Compass brings experience in implementing, calculating, and publishing indices within a regulated framework. Its role is to provide independent calculation support for the Marex Crypto Volatility Carry Indices.
What Executives Said
Walter Cegarra, Head of Institutional Solutions, Financial Products at Marex, explained that the firm brought the same research, development, and implementation standards used in its Institutional QIS business to digital assets. It helped Marex develop a new source of risk premia for traditional institutional investors and crypto-native investors both.
Liz Martin, Head of Coinbase Institutional at Coinbase, said the partnership would help Marex bring quantitative investment strategies to crypto-native investors and give traditional institutional investors access to digital assets through Marex as a counterparty.
Guillaume Le Fur, Managing Director, Index, at MSCI, stressed the importance of applying the rigour of benchmark administration to the new offering. He also noted that the initiative constructs on MSCI’s experience in the QIS market and its previous work with Marex.
About Marex Group Plc
Marex Group PLC (NASDAQ:MRX) is a global financial services firm. They emphasize market access, liquidity provision, and comprehensive infrastructure services. The company has a substantial presence in major markets around the world. Marex offers numerous services, including clearing, agency and execution, market making, hedging, and investment solutions.
Wrapping Up
Marex’s Crypto Volatility Carry Indices expand its Institutional QIS offering into Bitcoin and Ethereum. Marex strives to bring organized investment strategies to traditional institutional investors and crypto-native allocators.
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