London Stock Exchange to Offer Bitcoin Futures and Options!

  • The London Stock Exchange will start offering Bitcoin services.
  • LSEG has partnered with GFO-X for Bitcoin services.
  • LCH SA is preparing to introduce DigitalAssetClear.

The London Stock Exchange is preparing to launch Bitcoin products. Additionally, its subsidiary LCH SA is preparing to introduce the DigitalAssetClear initiative.

LSEG is Preparing to Offer Bitcoin Products!

As Bitcoin continues to trade above $30,000, the management of the London Stock Exchange Group (LSEG) has decided to include Bitcoin futures and options in its offerings.

LSEG has partnered with Global Futures and Options Exchange (GFO-X), a digital trading center focused on cryptocurrency derivatives, to offer the first regulated trading and clearing of Bitcoin index futures and options in the UK.

According to the statement:

“GFO-X is taking the first steps to leverage new technologies within a traditional market structure to achieve efficiency with the goal of eventually offering 24/7 trading to global regulated digital asset markets.”

Given the lack of official regulation in the UK crypto market, LCEG’s partnership with GFO-X, licensed by the UK Financial Conduct Authority (FCA), aims to add confidence to the digital asset derivatives ecosystem and bring cryptocurrencies closer to mainstream finance.

To be Launched in Late 2023

As part of the project, LSEG’s Paris-based clearing unit LCH SA will introduce DigitalAssetClear, a new, separate clearing service for cash-settled Bitcoin index derivatives traded on GFO-X. This service will begin in the fourth quarter of 2023 after LCH SA regulatory approvals are completed.

Commenting on the development, LCH DigitalAssetClear CEO Frank Soussan said:

“Bitcoin index futures and options are a rapidly growing asset class with increasing interest among institutional market participants seeking access in a regulated environment they are familiar with.

The service is a strong combination of GFO-X’s high-performance technology and LCH’s proven risk management capabilities optimized for contract specifications.”

In February, the UK government launched a public consultation on the future regulatory regime for cryptocurrencies and the risks and opportunities they present, demonstrating its commitment to making the UK a global crypto center. The consultation will end on April 30, 2023.

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