LSE Group (LSE: LSEG) and Global Futures and Options (GFO-X) are collaborating to offer regulated Bitcoin futures and options products to the British markets, marking the first such products in the country.
Transactions will be facilitated via a new segregated service called DigitalAssetClear, owned by LCH SA, based in Paris and owned by LSE Group. Regulatory approval is pending, with Bitcoin futures and options expected to launch in Q4 of 2023.
In a statement, GFO-X stated that it is taking the initial steps to leverage new technologies within a traditional market structure with the objective of eventually providing 24/7 trading for globally regulated digital asset markets.
The London Stock Exchange Group is launching UK's first-ever regulated trading platform for #Bitcoin derivatives. LCH, the Paris-based clearing house owned by LSEG, will provide clearing services for #BTC futures/options contracts #Bitcoin has risen 1.38pc today to £24,275.42 https://t.co/XWUCx5BZzh pic.twitter.com/MB8rxXi4uF
— Share_Talk ™ (@Share_Talk) April 13, 2023
While Bitcoin futures are already offered by companies such as CME Group (NASDAQ: CME), and Deribit currently dominates the options market, the partnership between LSE Group and GFO-X is the first move by a mainstream clearing house. The recent events in digital asset trading have emphasized the importance of a secure and regulated trading venue, where large financial institutions can trade at scale while ensuring their clients’ assets remain safeguarded, according to Arnab Sen, CEO, and co-founder of GFO-X.
Frank Soussan, the head of business at LCH, expressed his eagerness to collaborate with GFO-X and other market participants in establishing a regulated and liquid marketplace for these products. He also aims to contribute to its secure growth and development.
The United Kingdom’s Prime Minister and Conservative Party leader, Rishi Sunak, has been promoting Britain’s potential as a global center for digital asset technology for some time now. He has launched several consultations into the under-regulated sector in recent years. However, he has been slow in implementing a clear strategy.
Despite this, crypto adoption has not yet reached the mainstream, with a YouGov poll indicating that only 10% of British adults have personally purchased cryptocurrency in the past. Nonetheless, this represents a 100% increase over the previous two years.
The London Stock Exchange Group’s recent announcement comes as bitcoin’s price has surged over 80% year-to-date, making it one of the best-performing asset classes of 2023.
