The UK could see its first centrally cleared digital asset derivatives trading hub thanks to a partnership between a London Stock Exchange Group (LSEG) company and startup Global Futures and Options (GFO-X). They plan to launch the service in the fourth quarter of this year.
As announced on April 11, LCH SA, a Parisian subsidiary of clearing house LSEG, will provide clearing and settlement services for USD-denominated and cash-settled Bitcoin (BTC) index futures and options contracts traded on GFO-X. The plan still requires approval from regulatory authorities.
Digital Assets: LCH SA To Offer Clearing Services For Bitcoin F&O Contracts Traded On GFO-X https://t.co/n1bF2ZbZwp
—DailyAlts (@DailyAlts) April 13, 2023
GFO-X is regulated by the UK Financial Conduct Authority to operate a multilateral trading venue. GFO-X Co-Founder and CEO, Arnab Sen, described the firm as “the UK’s first centrally cleared and regulated trading venue focused entirely on digital asset futures and options.”
LCH SA has created a new segregated clearing service called LCH DigitalAssetClear. Frank Soussan, Director of LCH DigitalAssetClear, has stated:
“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.”
Traditional financial institutions and other large companies are increasingly betting on digital assets. In January, Samsung launched a Bitcoin-traded fund on the Hong Kong Stock Exchange. The Tel Aviv Stock Exchange wants to expand its cryptocurrency operations. Meanwhile, a subsidiary of Boerse Stuttgart Digital recently received approval from German regulators to offer a cryptocurrency custody service. Nasdaq is expected to launch a crypto custody service in the first half of this year.
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