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London Stock Exchange Taps Digital Trading Platform to Launch Bitcoin Futures, Options Trading

Summary:
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

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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.

  • The past few years saw the launch of multiple Bitcoin futures products in various countries, mostly futures ETFs. After the US set the example in 2021, other nations, such as Brazil, Hong Kong, and Argentina (earlier this week), followed suit.

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