London Stock Exchange Group-owned LCH has secured regulatory approval to clear cash-settled Bitcoin index futures and options contracts.
LCH will provide clearing through its new DigitalAssetClear service for cash-settled Bitcoin index futures and options contracts traded on the UK-based digital asset derivatives trading venue, GFO-X.
Launching later this year, LCH DigitalAssetClear will operate a fully segregated clearing service - including a segregated default fund and a dedicated set of clearing rules - for market participants clearing these instruments.
Corentine Poilvet-Clédière, CEO, LCH, says: "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."