London Stock Exchange Taps Digital Trading Platform to Launch Bitcoin Futures, Options Trading
TL;DR The UK is the latest country to approve bitcoin futures trading, with the London Stock Exchange Group tapping Global Futures Options to start offering the nation’s first regulated trading clearing in bitcoin index futures and options derivatives. The exact launch date of the product is yet to be determined, but it is expected to come to fruition in the last quarter of 2021.
The number of countries approving different types of bitcoin futures trading continues to increase, with the UK being the latest example.
The London Stock Exchange Group has tapped Global Futures Options to start offering the nation’s first regulated trading clearing in bitcoin index futures and options derivatives.
Although the exact date of the product launch is unclear yet, both parties’ expectations indicate that the product will see the light of day during the last quarter of the year.
They said the index futures service will be cash-settled through LCH Digital AssetClear. The latter will be a new segregated clearing service developed by the UK digital asset derivatives trading platform – GFO-X and approved by the Financial Conduct Authority.
LCH SA will provide the clearing services for the futures and options contracts, which will be traded on GFO-X.
“Bitcoin index futures and options are a rapidly growing asset class, with increasing interest among institutional market participants looking for access within a regulated environment they are familiar with. Offering centralised clearing for these cash-settled dollar-denominated crypto derivatives contracts on GFO-X is an important development for the market.” – commented Frank Soussan, LCH DigitalAssetClear’s Head.