LCH gets green light to clear Bitcoin index derivatives

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

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.”