Bitcoin Futures and Options Trading Comes to the London Stock Exchange

[ad_1]

The UK is the newest addition to the list of countries that have legalized bitcoin futures trading in one form or another.

The London Stock Exchange Group (LSE) announced on Thursday that it will provide trading and clearing services for derivatives based on the Bitcoin index.

In a statement on Thursday, LCH, the London Stock Exchange Group’s clearinghouse, said it 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 clearing services, the company announced in a press release.

In the UK, GFO-X is the first digital asset derivatives exchange to be both authorized and regulated by the Financial Conduct Authority (FCA).

Britain Aims to Become a Bitcoin Hub

Earlier this year, Britain, which aspires to become a global center for crypto technology, opened a public consultation on future legislation relating to crypto assets, which are currently unregulated.

Frank Soussan, head of LCH Digital Asset Clear, says bitcoin index futures and options are a fast-growing asset class due to the growing number of institutional market participants seeking access within a regulated framework.

Offering centralized clearing for these dollar-denominated, cash-settled crypto derivatives contracts on GFO-X is an important development for the market, Soussan said.

In the fourth quarter of this year, Bitcoin futures and options trading is expected to begin. The customs clearance service is now awaiting certification from the French authorities.

Arnab Sen, CEO and Co-Founder of GFO-X, issued the following statement:

Recent market events in digital asset trading have highlighted the need for a safe and regulated venue where large financial institutions can trade at scale, while protecting their clients’ assets.

The major role of clearing houses

Trade agreements made on an exchange can be settled in a central clearing house. They have been favored by authorities since the 2008 financial crisis as a strategy to reduce the risk of investment banks entering into separate bilateral transactions with other participants.

Rival CME Group already offers bitcoin futures and options, while the Chicago Board Options Exchange has acquired a digital asset exchange, ErisX.

On Monday, the FTSE Bitcoin Index will be available in US dollar and euro traded futures on Deutsche Boerse’s Eurex platform.

As investor interest in cryptocurrency grows, more mainstream financial institutions are beginning to offer cryptocurrency trading and related services.

Total cryptocurrency market capitalization climbs a bit and now hits $1.24 billion on TradingView.com’s daily chart Banking Giants Joining Bitcoin Bandwagon

Many major financial institutions have entered the crypto market, including JP Morgan, Morgan Stanley, Goldman Sachs, and BlackRock.

Several Bitcoin futures products, primarily futures ETFs, have been introduced in several countries over the past few years.

After the US lead in 2021, countries like Brazil, Argentina, and even Hong Kong took similar action.

-Featured image from CoinNewsSpan

[ad_2]