London Stock Exchange Group to Offer BTC Futures and Options Trading

London Stock Exchange Group (LSEG) plans to launch bitcoin futures and options trading services in the UK through a partnership with crypto derivatives trading startup Global Futures and Options (GFO-X). Further, LSEG will also introduce a new clearing service in France to manage cash-settled dollar-denominated crypto transactions executed on GFO-X.

LSEG to Launch a Separate Clearing Service to Protect Investors

LSEG partnered with GFO-X to offer bitcoin index futures and options derivatives trading services in the UK, the companies said in a joint statement on Thursday. GFO-X is a licensed startup platform in the UK that provides institutional investors access to crypto derivatives trading.

In the wake of the partnership, LSEG’s Paris-based clearing house LCH SA will launch a new, segregated clearing service named DigitalAssetClear. This service will handle cash-settled dollar-denominated crypto trades made on GFO-X.

DigitalAssetClear is expected to launch in Q4 2023, subject to approval from French regulators. GFO-X’s CEO Arnab Sen said the rollout of a well-established mainstream clearing house was necessary to improve investor protection following the myriad collapses in the crypto space, including the FTX exchange in November 2022.

“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.”

– said Arnab Sen, chief executive, and co-founder of GFO-X.

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LSEG’s Crypto Push

The move marks the latest LSEG’s push into digital assets. LSEG, the biggest stock exchange in the UK, first forayed into crypto in 2017 when it teamed up with IBM to develop a blockchain-based platform for managing securities lending transactions. In December, LSEG also announced a 10-year commercial partnership with Microsoft, which acquired a 4% stake in the stock exchange operator.

The group recently agreed to acquire the US cloud-based technology provider TORA in a $325 million deal. TORA supports most asset classes, including digital assets.

Meanwhile, the UK government is doubling its efforts to become a global crypto hub. To achieve this, the UK finance ministry published draft rules in February to regulate the troubled crypto industry and risks highlighted by a string of bankruptcies and hacks throughout 2022. The unveiled rules would address several aspects of the crypto sector, such as admission to trading platforms, public offers, transactions and remittances, platform operations, and custody services.

Do you think the UK could become a global crypto hub? Let us know in the comments below.