• The London Stock Exchange Group (LSE) announced that it will provide trading and clearing services for derivatives based on the Bitcoin index.
• Cash-settled Bitcoin (BTC) index futures and options contracts traded on GFO-X will have access to LCH’s clearing services.
• Britain is aiming to become a global center for crypto technology and opened a public consultation on future legislation for crypto assets.
London Stock Exchange Group Allows Bitcoin Futures Trading
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 released Thursday, LCH, the clearinghouse arm of the London Stock Exchange Group, said that it would provide clearing services for cash-settled bitcoin (BTC) index futures and options. These contracts traded on GFO-X will have access to LCH’s clearing services.
Britain Aiming To Become Global Center For Crypto Technology
Britain is aspiring to become a global center for crypto technology as they opened up a public consultation on future legislation for crypto assets which are currently unregulated. Frank Soussan, chief of LCH Digital Asset Clear, claims that bitcoin index futures and options are a fast-growing asset class due to the rising number of institutional market participants seeking access within a regulated setting.
Clearinghouses Play Major Role in Trading Agreements
Trading agreements made on an exchange can be settled at a central clearinghouse. They have been favored by authorities since the 2008 financial crisis as a strategy to reduce risk of investment banks doing business with each other directly without any form of protection or security measures in place. This also helps keep all transactions transparent while reducing counterparty risks associated with over-the-counter trades between two parties without any third party involvement or oversight.
Bitcoin Futures & Options Trading Begins In Q4 Of 2021
In the fourth quarter of this year, Bitcoin futures and options trading are anticipated to begin once clearance service has been certified by French authorities. Arnab Sen, CEO and co-founder of GFO-X said “Recent market events in the trading of digital assets have highlighted the need for a safe, regulated venue where large financial institutions can trade at scale, while keeping their clients’ assets protected.”
With multiple countries now legalizing bitcoin futures trading in some form, it allows more institutional investors to access these markets as well as allow them to benefit from its potential returns securely by using regulated exchanges such as GFO-X with secure clearance services provided by LCH Digital Asset Clearance Services