• The London Stock Exchange Group (LSE) announced that it will offer trading and clearing services for derivatives based on the Bitcoin index.
• LCH, the clearinghouse arm of the LSE, will provide clearing services for cash-settled bitcoin (BTC) index futures and options.
• GFO-X, an exchange for digital asset derivatives authorized and regulated by the Financial Conduct Authority (FCA), will have access to LCH’s clearing services.
The UK Legalizes Bitcoin Futures Trading
The United Kingdom is now one of many countries that have legalized bitcoin futures trading in some form. The London Stock Exchange Group (LSE) said on Thursday that it will provide trading and clearing services for derivatives based on the Bitcoin index.
Cash-Settled Bitcoin Index Futures and Options
In a statement released Thursday, LCH, the clearinghouse arm of the London Stock Exchange Group, said they would provide clearing services for cash-settled bitcoin (BTC) index futures and options. Cash-settled Bitcoin (BTC) index futures and options contracts traded on GFO-X will have access to LCH’s clearing services. In the UK, GFO-X is the first exchange for digital asset derivatives that is both authorized and regulated by the Financial Conduct Authority (FCA).
Britain’s Aspiration To Become A Global Crypto Center
Earlier this year, Britain opened a public consultation on future legislation for crypto assets which are currently unregulated at present with hopes to become a global center for crypto technology. Frank Soussan, chief of LCH Digital Asset Clear said that due to increasing institutional market participants seeking access within a regulated setting, bitcoin index futures and options are quickly growing as an asset class.
GFO-X Plans To Launch Trading For Derivatives In Q4
Bitcoin futures and options trading are anticipated to begin in the fourth quarter of this year once clearance service is certified by French authorities. Arnab Sen CEO & co founder of GFO X made a comment highlighting recent market events in digital assets showing how there needs to be a safe & regulated venue where large financial institutions can trade while keeping clients assets protected.
Clearinghouses Role In Trade Settlements
Trading agreements made on an exchange can be settled at a central clearinghouse which have been favored by authorities since 2008 financial crisis as a strategy to reduce risk posed by investment banks not being able to meet their obligations .