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The contracts will be associated with Silicon Data indices that monitor daily rental costs for graphics processing units (GPUs), which are vital for artificial intelligence advancement.
The updated tools will allow traders, financial organizations, cloud services, and AI creators to handle price risk in this sector.
"Markets for computing power are still very fragmented, and prices can differ greatly based on the provider, location, and contract type," states Silicon Data CEO Carmen Li, describing the collaboration with CME as a vital move towards developing stronger tools for assessing computing power value, managing risks, and long-term GPU market strategies, which has traditionally been devoid of standardized pricing benchmarks.
Don Wilson, founder and CEO of DRW, a trading firm that invested in Silicon Data, stated that the absence of a hedging mechanism is constraining the expansion of data center investment.
"The introduction of a futures market for computing power is a significant answer to this issue, which can assist market players in managing price fluctuations and planning with more assurance," he said in a press release.
source: ft.com
The updated tools will allow traders, financial organizations, cloud services, and AI creators to handle price risk in this sector.
"Markets for computing power are still very fragmented, and prices can differ greatly based on the provider, location, and contract type," states Silicon Data CEO Carmen Li, describing the collaboration with CME as a vital move towards developing stronger tools for assessing computing power value, managing risks, and long-term GPU market strategies, which has traditionally been devoid of standardized pricing benchmarks.
Don Wilson, founder and CEO of DRW, a trading firm that invested in Silicon Data, stated that the absence of a hedging mechanism is constraining the expansion of data center investment.
"The introduction of a futures market for computing power is a significant answer to this issue, which can assist market players in managing price fluctuations and planning with more assurance," he said in a press release.
source: ft.com
