UK Now Offers Bitcoin Futures Trading: LSE & LCH Provide Clearing Services
• The London Stock Exchange Group (LSE) announced they will provide trading and clearing services for derivatives based on the Bitcoin index.
• LCH, the clearinghouse arm of the London Stock Exchange Group, will provide clearing services for cash-settled bitcoin (BTC) index futures and options.
• GFO-X, which is authorized and regulated by the Financial Conduct Authority (FCA), will be the first exchange in the UK to offer digital asset derivatives.
UK Legalizes Bitcoin Futures Trading
The United Kingdom has recently legalized bitcoin futures trading in some form. The London Stock Exchange Group (LSE) announced on Thursday that it would provide trading and clearing services for derivatives based on the Bitcoin index.
Clearing Services Provided by LCH
The clearinghouse arm of the London Stock Exchange Group, LCH, will 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’s clearing services, as per a press release issued by them. GFO-X is authorized and regulated by the Financial Conduct Authority (FCA). This makes it the first exchange in the UK to offer digital asset derivatives.
Britain Aims To Become Bitcoin Hub
In an effort to become a global center for crypto technology, Britain opened a public consultation on future legislation for crypto assets earlier this year as they remain unregulated at present. Frank Soussan, chief of LCH Digital Asset Clear claims that due to rising number of institutional market participants seeking access within a regulated setting, bitcoin index futures and options are becoming a fast growing asset class.
Centralized Clearing For Crypto Derivatives Contracts
Arnab Sen, CEO and co-founder of GFO-X stated that recent market events in digital assets have highlighted how important it is to have safe & regulated venues where big financial institutions can trade with their clients’ assets being protected. Bitcoin futures & options trading are expected to begin in 4th quarter of 2020 pending French authorities certification for clearance service provided by LCH Digital Asset Clear.