- The London Stock Exchange Group decided to add Bitcoin futures and options to its offering.
- The association of the LSEG with GFO-X, aims to add confidence to the ecosystem of derivatives of digital assets.
- DigitalAssetClear is a new segregated clearing service for cash-settled Bitcoin index derivatives traded on GFO-X.
As the cryptocurrency industry continues to expand and institutions begin to show increased interest in digital assets such as Bitcoin, the management of the London Stock Exchange Group (LSEG) decided to add Bitcoin futures and options to its offering.
In fact, the LSEG joined forces with cryptocurrency derivatives-focused digital trading venue Global Futures and Options (GFO-X) to offer Britain’s first regulated trading of Bitcoin index futures and options, according to the statement. press release published on April 13.
“GFO-X is taking the first steps to take advantage of new technologies within a traditional market structure, with the goal of eventually offering 24/7 trading to global regulated digital asset markets.”
Considering that there is still no official regulation on the cryptocurrency market in the UK, the LSEG’s partnership with GFO-X, authorized by the UK Financial Conduct Authority (FCA), aims to add trust to the derivatives ecosystem . of digital assets, bringing cryptocurrencies one step closer to conventional finance.
As part of the project, LCH SA, the Parisian subsidiary of clearing house LSEG, will introduce DigitalAssetClear, a new segregated clearing service for cash-settled Bitcoin index derivatives traded on GFO-X. This service will be launched in the fourth quarter of 2023, once LCH SA has obtained the regulatory authorizations. Frank Soussan, Director of LCH DigitalAssetClear, commented:
“Bitcoin index futures and options are a rapidly growing asset class, with increasing interest among institutional market participants seeking access within a regulated environment with which they are familiar. The service is a powerful combination of GFO-X’s high-performance technology and optimized contract specifications with LCH’s risk management capabilities.”
In February, the UK government launched a public consultation on the future financial services regulatory regime for cryptocurrencies, as well as the risks and opportunities they present, demonstrating their commitment to making the UK a global center for cryptocurrencies. The consultation will close on April 30, 2023.
