London Stock exchange is looking to create a centrally cleared and trading environment for Bitcoin (BTC) derivatives.
London Stock Exchange Group (LSEG) subsidiary LCH SA is partnering with Global Futures and Options (GFO-X), a Financial Conduct Authority (FCA)-regulated trading startup, to create a centrally cleared and regulated trading environment for digital asset derivatives.
The collaboration will make the UK’s first centrally cleared trading venue for such products, subject to regulatory approval. The offering, which is set to launch in Q4 2023, will feature dollar-denominated, cash-settled Bitcoin index futures and options contracts traded on the GFO-X platform, with LCH SA providing clearing services.
According to a statement released on April 11, the Paris-based subsidiary of LSEG clearinghouse, LCH SA, has established a new, segregated clearing service named LCH DigitalAssetClear for the GFO-X offering.
Frank Soussan, the head of LCH DigitalAssetClear, said that the Bitcoin index futures and options represent a quickly growing asset class with growing interest among institutional market players searching for access to a regulated environment they are comfortable with.
Digital asset trading has been attracting attention from traditional financial institutions and other major corporations, with Samsung launching a Bitcoin exchange-traded fund on the Hong Kong Stock Exchange in January.
The Tel Aviv Stock Exchange is also looking to expand its cryptocurrency trading. A subsidiary of Boerse Stuttgart Digital recently obtained permission from German regulators to provide crypto custody services, while Nasdaq is expected to introduce a crypto custody service during H1 2023.
In the meantime, GFO-X CEO Arnab Sen stated that the startup is the United Kingdom’s first regulated and centrally cleared trading venue focused on digital asset futures and options.
The collaboration with LCH SA marks another important move towards the mainstream adoption of digital assets. With more institutional investors entering the crypto space, there is a growing need for regulated trading and clearing services to ensure investor safety and security.
The collaboration between LCH SA and GFO-X highlights the growing appetite for digital asset investment and the need for reliable, transparent and trustworthy investment infrastructure.
With the launch of the UK’s first centrally cleared trading venue for digital asset derivatives, investors are likely to gain greater confidence in the cryptocurrency market, resulting in wider adoption and growth in this asset class.
London stock exchange btc
In conclusion the partnership between LCH SA and GFO-X to create a centrally cleared and regulated trading environment for digital asset derivatives marks an important move towards mainstream adoption of cryptocurrencies.
With increasing interest from institutional market players, there is a growing need for regulated trading and clearing services to ensure investor safety and security.
The launch of the UK’s first centrally cleared trading venue for digital asset derivatives is likely to inspire greater confidence in the cryptocurrency market, leading to wider adoption and growth in this asset class.