KUALA LUMPUR: Global Futures and Options Ltd (GFO-X), the institutional-grade trading venue dedicated to digital asset derivatives, announced a strategic partnership with London Stock Exchange Group’s LCH SA, to launch the first centrally cleared trading venue for digital asset derivatives in the United Kingdom (UK).
According to the UK FCA authorised and regulated GFO-X in a statement, the company will offer trading in cash-settled bitcoin (BTC) index futures and options.
GFO-X chief executive officer and co-founder Arnab Sen 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.
“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.”
Meanwhile, Head of LCH DigitalAssetClear, Frank Soussan said offering centralised 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 optimised contract specifications with LCH’s proven risk management capabilities,” he said.
GFO-X in partnership with LCH SA will offer clearing on cash settled digital asset index derivatives, adding much needed trust to the digital asset derivative ecosystem.
It is taking the first steps to extracting efficiencies from new technologies within a traditional market structure, with the goal over time of delivering 24/7 trading to global regulated digital asset markets.
Both companies have been working with an advisory working group comprising the world’s leading investment banks, trading firms and liquidity providers to optimise product design and risk methodologies. – BERNAMA
