LCH SA has developed a new clearing platform for Bitcoin index derivatives, in partnership with digital asset derivatives trading venue GFO-X and with the consultation of market participants.
LCH DigitalAssetClear will provide clearing services for Bitcoin index futures and options contracts traded on GFO-X. Pending regulatory approval, it is expected to go live in Q4 2023.
The platform operates on a fully segregated clearing system and segregated default fund, with assets cash-settled based on the GFO-X/Coin Metrics Bitcoin Reference Rate (GCBRR).
Users will be able to trade futures and options directly on the Bitcoin reference index, and will benefit from LCH SA’s risk mitigation, netting and margin efficiency expertise.
Frank Soussan, head of LCH DigitalAssetClear, says: “Bitcoin index futures and options are a rapidly growing asset class, with increasing interest among institutional market participants looking for access within a regulated environment they are familiar with. Offering centralised clearing for these cash-settled dollar-denominated crypto derivatives contracts on GFO-X is an important development for the market.”
Arnab Sen, CEO and co-founder of GFO-X, adds: “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.”
