LCH, owned by the London Stock Exchange Group, has received regulatory approval to clear cash-settled Bitcoin index futures and options contracts.
LCH will offer clearing through its new DigitalAssetClear service for these instruments, which will be traded on the UK-based digital asset derivatives platform, GFO-X. Set to launch later this year, DigitalAssetClear will feature a fully segregated clearing service, including a dedicated default fund and tailored clearing rules for market participants engaging with these contracts.
Corentine Poilvet-Clédière, CEO of LCH, expressed satisfaction regarding the approval, stating, “We are pleased to have received regulatory approval to launch this innovative service which will enable institutional market participants to trade and clear cash-settled Bitcoin index futures and options within a regulated environment they are familiar with and which will allow them to benefit from LCH SA’s proven risk management capabilities.”