Marex Group has launched what it describes as the first Institutional Quantitative Investment Strategies indices focused on digital assets, introducing a new family of Marex Crypto Volatility Carry Indices.
The initial offering includes two indices, one focused on Bitcoin and the other on Ethereum. The strategies are designed to systematically capture the risk premium between implied and realized volatility using a rules-based investment approach.
The launch expands Marex’s Institutional QIS platform into digital assets and supports the firm’s strategy of connecting traditional financial markets with crypto markets. Marex plans to apply its quantitative research, structuring, trading, and market access capabilities to digital asset risk premia that could appeal to both traditional institutional investors and crypto-native market participants.
For the new Crypto Volatility Carry Indices, Marex will use listed options and perpetual futures on Bitcoin and Ethereum available through Coinbase. Marex selected Coinbase for its institutional infrastructure, liquidity, and ability to support risk management for the indices on a 24/7 basis.
MSCI, through Compass Financial Technologies, has been selected as the independent index calculation agent and index administrator. The arrangement is intended to provide independent calculation, publication, and administration of the indices within a regulated benchmark framework.
The new products build on Marex’s broader Institutional QIS business, which develops systematic investment strategies across multiple asset classes and risk premia. The company said its focus is on areas where its specialist trading, structuring, and execution capabilities can provide differentiated access to institutional investors.
Marex operates across more than 60 exchanges and serves more than 3,400 active clients, including commodity producers, traders, banks, hedge funds, and asset managers. The group has more than 50 offices globally and provides services spanning clearing, agency and execution, market making and hedging, and investment solutions.
The indices are intended for institutional investors and are not available to retail investors. Products linked to the strategies may involve significant investment risk, including the potential for losses depending on their structure.
KEY QUOTES:
“Working together with our Structuring, Quant and Trading teams, we have applied the same R&D and implementation rigor which defines Institutional QIS to the crypto asset class. This resulted in bringing a brand new and diversifying risk premia to the traditional institutional and the crypto native investor communities.”
Walter Cegarra, Head Of Institutional Solutions, Financial Products At Marex
“We are very happy to be powering Marex’s innovative QIS offering and help bring QIS to crypto natives and digital assets to traditional institutional investors, through of Marex as a counterparty.”
Liz Martin, Head Of Coinbase Institutional At Coinbase
“Building on our long history in the QIS space and our previous work with Marex, we are proud to be bringing the rigour of a benchmark administrator to this innovative offering.”
Guillaume Le Fur, Managing Director, Index, At MSCI
