Bitcoin Futures and Options Offering from London Stock Exchange

Institutions are seeking possibilities of offering crypto exposure within a regulated environment.
London Stock Exchange and Global Futures and Options are bringing Bitcoin Futures and Options services.

The growing popularity and wider adoption of cryptocurrencies attract much attention from traditional institutions. Bitcoin (BTC), among all the crypto assets, has its leading position and hence justified its prominence. Seeking the same, the London Stock Exchange announced the Bitcoin Futures and Options trading offering.

According to Reuters, the partnership of the London Stock Exchange Group (LSEG) and crypto derivatives-focused digital trading platform Global Futures and Options (GFO-X), brought the Bitcoin (BTC) trading offerings. This was said to be the country’s first regulated Bitcoin index futures and options derivatives trading and clearing services.

Further, it was suggested that the LCH SA clearing unit of LSEF, based in Paris, will launch a specific clearing service dubbed “DigitalAssetClear.” It will take care of GFO-x traded “cash-settled dollar-denominated” digital assets.

The trading platform, Global Futures, and Options (GFO-X), is a digital asset derivative seeking global institutional investors-focused start-up. It is licensed by the Financial Conduct Authority (FCA), UK’s Financial Regulator.

The GFO-X traded cash-settled Bitcoin index derivatives service is waiting for LCH SA regulatory approvals from French and European regulators. After the process, the service is expected to launch towards the end of 2023.

Reuters reported that Chicago-based CME Group and exchange holding company CBOE had already stepped into the space. With the former offering bitcoin futures and options, the latter acquired ErisX, a Chigaco-based crypto exchange, in May last year.

While the other rivals include Deutsche Boerse, reportedly on the plan to launch Dollar and Euro-denominated futures, the German multinational is seeking to start the FTSE bitcoin index by April 17, Monday.

LCH DigtialAssetClear Head, Frank Soussan, said that Bitcoin (BTC) index futures and options are among the asset classes that are growing rapidly. This growth attracts more interest from institutional investors who constantly look for exposure to such opportunities within the “regulated environment.”

“Offering centralized clearing for these cash-settled dollar-denominated crypto derivatives contracts on GFO-X is an important development for the market. The service is a powerful combination of GFO-X’s high-performance technology and optimized contract specifications with LCH’s proven risk management capabilities.”

GFO-X Co-founder and CEO Arnab Sen said that the broader crypto market had been through such events, which raised concerns regarding safe and regulated space for financial institutions to initiate large-scale trading, ensuring the protection of their assets.

“As the UK’s first regulated and centrally cleared trading venue focused entirely on digital asset futures and options, our joint vision is to ensure digital asset derivatives’ trading and clearing requirements and growing demand can be met within a secure, highly regulated environment.”

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing