London Stock Exchange Group To Release Bitcoin Futures And Options In Q4

Key Points:

• The London Stock Exchange Group has announced that it would provide trading and clearing services for Bitcoin index futures and options derivatives.
• The LSE has collaborated with Global Futures and Options to provide people the opportunity to invest in Bitcoin.
• Bitcoin futures and options trading is projected to begin in Q4 2023.

On Thursday, the London Stock Exchange Group tapped Global Futures Options to start offering the nation’s first regulated trading clearing in Bitcoin index futures and options derivatives.

London Stock Exchange partnered with Global Futures and Options (GFO-X) to launch UK’s first regulated Bitcoin futures and options trading, reported by Reuters on April 13.

Great Britain has taken a cautious approach to crypto adoption while it prepares to become a global hub for crypto. It also launched a public consultation on future rules for crypto assets, which remain unregulated currently.

GFO-X, which is licensed by the UK’s Financial Conduct Authority, is a start-up platform aimed at global institutional investors who want to trade digital asset 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. Currently, the clearing service is pending approval from French regulators.

Commenting on the new service, Frank Soussan, Head of LCH DigitalAssetClear, said:

“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.”

London Stock Exchange agreed that Bitcoin index futures and options are increasingly becoming a growing asset class amid recent events such as the banking crisis in the U.S. Moreover, the UK has witnessed increasing interest in crypto from institutional investors.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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