LSEG SA has received regulatory approval from French and European regulatory authorities to clear cash-settled Bitcoin index futures and options contracts.
Contracts traded on the UK FCA’s digital asset derivatives trading venue, GFO-X, can be cleared using LCH Digital Asset Clear, following regulatory approval from ACPR, Banque de France and AMF in France and the EMIR College and ESMA in Europe.
LCH Digital Asset Clear is a digital asset derivative-specialised platform, developed in partnership with GFO-X and market participants. It is underpinned by a segregated asset fund, tailored risk management model and dedicated set of clearing rules, LSEG said, and is planned to be launched later this year after consultations with General Clearing Members.
The cash-settled Bitcoin contracts will be based on the GFO-X/Coin Metrics Single Asset Real-Time Bitcoin Index (GFOXBR), an EU Benchmark Regulation-compliant reference rate of the US dollar price of Bitcoin. Firms will be able to trade futures and options on the index directly.
Corentine Poilvet-Clédière, CEO of LCH SA, said: “ This innovative service 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 will allow them to benefit from LCH SA’s proven risk management capabilities.
“LCH SA is excited to be working with GFO-X, together with the industry, to provide a regulated marketplace for this asset class as we look to expand our services as a truly international clearing house.”
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