FTX no longer a publicly accessible trading venue after collapse
London and Santa Monica, Calif., November 10, 2022 – Wilshire, a leading global financial services firm committed to enhancing and modernizing the way that indexes are built, maintained and licensed, has announced that following the recent events regarding FTX, it has made the decision to indefinitely suspend FTX as an eligible price contributing exchange.
The suspension is in accordance with Wilshire’s Digital Asset Index Governance Policy where pricing fidelity is in doubt. With immediate effect FTX will no longer contribute prices to the FT Wilshire Digital Asset Blended Prices, FT Wilshire Digital Asset Settlement Prices and FT Wilshire Digital Asset Index Series.
It is the view of Wilshire that an indefinite suspension of withdrawals and closures to new accounts means FTX is no longer a publicly accessible trading venue and traded prices may no longer be representative of the broader market.
Contributing exchanges help facilitate price discovery through the FT Wilshire Digital Asset Index Series and are monitored and reviewed semi-annually to determine if they meet all the eligibility criteria to be a contributing exchange. Wilshire uses the CryptoCompare Exchange Benchmark as the basis for its semi-annual review. The Exchange Benchmark rates over 150 digital asset exchanges against eight criteria.
The last semi-annual review took place on October 21st, 2022 with a public notification released on October 31st, 2022 communicating which exchanges were eligible to be contributing exchanges and which exchanges where added to a “watchlist” for inclusion or demotion. The new changes took effect on November 1st, 2022.
After the last review, both CEX.io and FTX were promoted to contributing exchanges while OKCoin, eToroX and CrossTower were added to the “watchlist” for demotion due to their ranking falling below the required level.
Christopher Woods, Managing Director, Head of Index Policy, Wilshire said: “The digital asset’s markets move incredibly quickly and in light of recent failure of FTX we also needed to assess the issue with urgency to maintain the integrity of our digital asset indexes. We have put the right policies and measures in place to ensure that these types of market disruptions have little impact on our clients and the indexes remain stable.”
Wilshire offers a wide range of discretionary and advisory multi-asset class and alternative investment solutions, market-leading indexes such as the FT Wilshire 5000, and investment decision support tools. Founded in 1972, Wilshire advises on nearly $1.3 trillion and manages $84 billion in assets. Wilshire serves more than 500 institutional and financial intermediary clients from 10 offices around the world.
More information on Wilshire can be found at www.wilshire.com
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