In a blog post published today, BitMEX announced that it will revamp its indices across all products to ensure that the reference prices “more closely reflect the market consensus price of underlying assets”. While the news is a good one, it made a blunder in updating its users.
BitMEX’s Blunder – It CC’ed the Email Instead of BCC’ing it
BitMEX, for updating its users about revamping its indices, sent an email to its users. However, instead of sending a Blind Carbon Copy (BCC), it sent a Carbon Copy (CC), thereby exposing the email addresses of thousands of its users.
The exchange acknowledged its mistake and also apologized to users. It also said that it is taking steps to understand the extent of the impact. Furthermore, it will be in touch with any users affected by the issue.
Our team have acted immediately to contain the issue and we are taking steps to understand the extent of the impact. Rest assured that we are doing everything we can to identify the root cause of the fault and we will be in touch with any users affected by the issue.
Update to Come Into Effect From November 22
The good news is that BitMEX is revamping its indices for offering fairer and more accurate reference prices to its users. The indices which will be updated are .BXBT, .BETH, .BETHXBT, .BXRPXBT, .BBCHXBT, .BLTCXBT, .BEOSXBT, .BADAXBT and .BTRXXBT, and the updates will come into effect from November 22. The new indices will be calculated with trading volume data across the constituent exchanges. This data will be gathered directly from the concerned exchanges using API connections.
To help users understand any differences before the changes applied to BitMEX’s indices on November 22, BitMEX will be publishing “BitMEX NEXT”. BitMEX NEXT is a family of indices that will run parallel to the existing indices and reflect the changes after the switchover. BitMEX NEXT, however, will not be used for valuation or settlement.
BitMEX, with its new indices, aims to achieve fairness, robustness, and accuracy in its reference prices. It believes that the new indices are going to be more representative because they will include data from more exchanges, have more constituents per index, and include higher weight from exchanges with higher trading volume.
The new indices will be calculated as “a weighted average of the Last Price for each constituent exchange”. Index prices will be updated every 5 seconds.
Old Indices Vs New Indices
As can be seen in the table above, the existing indices do not include data from Gemini, Huobi and Itbit. The new indices include data from these exchanges as well, particularly Huobi, whose data will be included in calculating the reference prices of a majority of BitMEX’s products.
In the new indices, Both Itbit and Gemini will contribute data to .BXBT_NEXT and .BETH_NEXT. Huobi will share data for .BETHXBT_NEXT, .BXRPXBT_NEXT, .BBCHXBT_NEXT, .BLTCXBT_NEXT, .BEOSXBT_NEXT, .BADAXBT_NEXT. and .BTRXXBT_NEXT.
Binance’s share in the .BETHXBT_NEXT, .BXRPXBT_NEXT, .BBCHXBT_NEXT, .BLTCXBT_NEXT, .BEOSXBT_NEXT, .BADAXBT_NEXT. and .BTRXXBT_NEXT indices has increased considerably, while Bitstamp will be sharing data for 3 more indices. While Bittrex’s weightage for .BADAXBT_NEXT has reduced significantly, it will be sharing data for 3 more indices. Coinbase will be sharing data for 4 more indices. Kraken and Poloniex’s weightage towards indices has reduced significantly. Also, Poloniex, whose data was earlier being used for calculating 5 indices, will now have a small weightage in only 2 indices.