London Stock Exchange to offer crypto derivatives

London Stock Exchange crypto Image credit: Svet foto via Shutterstock

The London Stock Exchange Group (LSEG) will launch a service to trade crypto derivatives through a partnership with a former banker and a hedge fund manager.

The plans will allow institutional clients to purchase Bitcoin futures, wherein they speculate on the value of the crypto asset in Q4 this year.

The London Stock Exchange Group has said the joint crypto venture would be run by the group’s Paris-based clearing house LCH, along with digital asset marketplace GFO-X. The combined operation will be called LCH DigitalAssetClear.

The move was designed to encourage asset managers and traders to get involved in crypto trading by offering an option to avoid making direct purchases.

LCH DigitalAssetClear head Frank Soussan said these investors needed “a framework which they are familiar with and comfortable with, which at this stage is traditional market infrastructure, a regulated market venue”.

GFO-X co-founder and CEO Arnab Sens 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.

“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.”

The venture from LSEG is in line with the UK government’s previously stated ambition of building a global cryptoasset hub.