GFO-X is the UK's first regulated and centrally cleared trading venue dedicated to digital asset derivatives
GFO-X is authorised and regulated by the UK FCA (Financial Conduct Authority) to operate an MTF (Multilateral Trading Facility)
LCH SA will introduce a new, segregated clearing service, DigitalAssetClear, for cash-settled Bitcoin index derivatives traded on GFO-X
Launch is currently scheduled for Q4 2023, subject to completion of LCH SA regulatory approvals
LONDON--(BUSINESS WIRE)--GFO-X, the institutional-grade trading venue dedicated to digital asset derivatives, today announced a strategic partnership with LCH SA, an LSEG (London Stock Exchange Group) business, to launch the UK’s first centrally cleared trading venue for digital asset derivatives. At launch, GFO-X will offer trading in cash-settled BTC index futures and options.
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. Underpinned by traditional market structure, evolving regulation will bring digital assets into mainstream finance. GFO-X 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.
GFO-X and LCH SA 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.
Arnab Sen, CEO and Co-Founder of GFO-X 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. LCH delivers proven risk management capabilities across a range of asset classes and some of the most sophisticated clearing services in financial markets today. 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.”
Commenting on the new service, Frank Soussan, Head of LCH DigitalAssetClear said: “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. The service is a powerful combination of GFO-X’s high-performance technology and optimised contract specifications with LCH’s proven risk management capabilities. We look forward to working with GFO-X and market participants alike to build a liquid, regulated marketplace for these products, and contributing to its safe growth and development.”
About GFO-X
Global Futures and Options Ltd (GFO-X) is the UK's first regulated and centrally cleared trading venue dedicated to digital asset derivatives. UK FCA authorised and regulated, GFO-X is connected to the world's largest financial institutions and has partnered with leading clearing house LCH, solving for counterparty and credit risk.
Evolving regulation will bring digital assets into mainstream finance. This transition demands traditional market structures, supported by new technologies, to solve the multiple risks currently associated with the digital asset market.
GFO-X services the significant unmet need of large global institutional participants who require a highly regulated, institutional-grade trading venue for digital asset derivatives.
Our mission is to deliver enhanced liquidity, institutional connectivity and risk mitigation through high-performance technology and optimised contract specifications.
Further information can be found at www.gfo-x.com
