The U.K. could see its first centrally cleared trading venue for digital asset derivatives, thanks to a partnership between the London Stock Exchange Group (LSEG) business and trading startup Global Futures and Options (GFO-X). They intend to launch the service in the fourth quarter of this year.
LCH SA, the Paris-based subsidiary of LSEG Clearinghouse, will provide clearing services for dollar-denominated, cash-settled bitcoin, according to an April 11 announcement. Index futures and options contracts traded on the GFO-X venue. The plan still needs regulatory approval. LCH SA has created a new, independent clearing service called LCH DigitalAssetClear. Frank Soussan, Head of LCH DigitalAssetClear said:
“Bitcoin index futures and options are a fast-growing asset class, with institutional market participants increasingly interested in finding opportunities in a regulatory environment they are familiar with.” Traditional financial institutions and other large companies are increasingly entering the digital asset space. In January, Samsung launched a bitcoin exchange-traded fund on the Hong Kong stock exchange. The Tel Aviv Stock Exchange is looking to expand its cryptocurrency trading. Meanwhile, a subsidiary of Boerse Stuttgart Digital recently received approval from German regulators to offer cryptocurrency custody services. Nasdaq is expected to launch a cryptocurrency custody service in the first half of this year.
