BNC Index Governance Committee announces the following items and changes discussed during the BNC Quarterly Index Review. These changes will affect the Bitcoin Liquid Index (BLX) and Ethereum Liquid Index (ELX).
The Index Committee has decided to keep the same constituents this quarter.
Considering the fiat withdrawal suspension on Bitfinex in October and the premium that they are trading at, the Index Committee has decided to attribute demerits points to Bitfinex.
Investigation of implementing a price divergence factor:
To reduce the impact of any diverging constituent in the LX calculation the Index Committee decided during the review, to implement a fourth weighting factor in the calculation methodology (on top of Volume, Liquidity and Trust factors). This factor will evaluate the price deviation between a specific constituent and the median of the constituents, and reduce the contribution of constituents that are above a threshold.
Please see the below public release for full details on this announcement.