The BLOCKSIZE Data Committee is a group of experts of BLOCKSIZE which are tasked with protecting the integrity of the price data feeds of BLOCKSIZE CONNECT and ensure that they serve as a source of transparent and reliable pricing.
The BLOCKSIZE Data Committee is responsible for regular reviews of the BLOCKSIZE CONNECT price data feeds production process, the manifest and methodologies, the selection of data sources and data inputs, any uses of expert judgment or non-standard procedures, conflicts of interest, material changes to or termination of the BLOCKSIZE CONNECT price data feeds, as well as any complaints or questions regarding the price data feeds from external stakeholders.
Data Sources
The input data source the BLOCKSIZE CONNECT price feeds are markets traded on cryptocurrency exchanges (CEXs and DEXs) that are approved to serve as pricing sources by the BLOCKSIZE Data Committee. The BLOCKSIZE Data Committee evaluates which markets are suitable based on various criteria in order to establish that the data is to be trusted and transparent. The BLOCKSIZE Data committee frequently checks whether or not the existing data sources are meeting the qualification standards and the BLOCKSIZE Data Committee evaluates new potential markets for inclusion based on the demand of existing clientele.
Data source markets can be requested for inclusion and existing constituent markets can be nominated for exclusion by any BLOCKSIZE customer, BLOCKSIZE partner, or member of the BLOCKSIZE Data Committee. External nominations for inclusion or exclusion of a market can be submitted in writing to connect@blocksize-capital.com. BLOCKSIZE publishes the current list of market constituents.
Market Selection Process
The market selection process consists of a systematized approach for evaluating markets to serve as an input for the calculation of the BLOCKSIZE CONNECT price data feeds. It generates a list of potential cryptocurrency exchanges that are subsequently reviewed by the BLOCKSIZE Data Committee. The markets selection framework evaluates exchanges based on the following criteria:
Technology: An assessment is done into whether or not the technical infrastructure of the market’s exchange provides sufficient availability and reliability for data collection. Additionally, it is evaluated whether the exchange offers a REST or RPC API and/or a WebSocket feed that fits our requirements for data collection. Lastly, the performance of the API in terms of reliability and latency is checked.
Legal and Compliance: The BLOCKSIZE operations team does an assessment on the compliance and legality of the market’s exchange in accordance with the laws and regulation it’s jurisdiction. The market’s legal risk exposure is then evaluated. Transparency of the market’s business operation is assessed based on whether or not the market’s exchange has publicly disclosed trading policies, uses market surveillance tools, and enforces KYC and AML requirements.
Data Availability: The market exchange’s data availability is checked to determine which crypto assets are listed and whether it is sufficient to meet client needs.
Price: The BLOCKSIZE Data Committee evaluates the quality of the market’s price data for significant deviations from other peers.
Volume: For every asset that we list, we check the trading volume of a given asset pair. If it is determined that the trading activity is not sufficient enough to represent a reliable price reflective of the whole market, then it is rejected.
The BLOCKSIZE Data Committee is reviewing markets regularly at the end of each month.
Internal Audit
The BLOCKSIZE Data Committee appoints an independent internal auditor to review the BLOCKSIZE CONNECT price data feeds’ adherence to its stated methodology and compliance with policies.
Conflicts of Interest
BLOCKSIZE enforces policies and procedures relating to conflicts of interest in connection with the production of the BLOCKSIZE CONNECT price data feeds. The policy addresses the identification, disclosure and management of the conflicts of interest. These policies and procedures are periodically reviewed by the BLOCKSIZE Data Committee.
Complaints
Complaints about the calculation methodology or performance of the BLOCKSIZE CONNECT price data feeds should be submitted in writing to connect@blocksize-capital.com. Any investigation of the complaint will adhere to the following procedures:
All records and documents submitted by the complainant and related to the investigation will be submitted to the BLOCKSIZE Data Committee for review.
Any complaint that results in a change in the determination of the BLOCKSIZE CONNECT price data feed, its calculation methodology, or its policies will be publicly disclosed and will explain the action taken.
Date: 2023-02-02