The London Stock Exchange Group (LSEG) has taken a major step in the development of mainstream finance for cryptocurrency exchange, by launching services for Bitcoin futures and options in partnership with Global Futures and Options (GFO-X) This will introduce a digital asset clearing service known as DigitalAssetClear, that is expected to be launched in the fourth quarter of 2023, pending regulatory approvals.

The current cryptocurrency market lacks official regulation in the UK, but the government is making efforts to turn the UK into a global crypto capital. This move by the LSEG is in line with the public consultation regarding, the future of the financial services regulatory regime and its risks and opportunities, that was launched earlier in February 2023.

The partnership between LSEG and GFO-X is licensed by the UK's Financial Conduct Authority and this is aimed at providing the level of trust and assurance for the digital asset derivatives ecosystem that many participants are seeking. The service, which will feature high-performance technology and optimized contract specifications, will offer a much-needed regulated environment to institutions.

Frank Soussan, who is the Head of LCH DigitalAssetClear, expressed his view that the Bitcoin index futures and options have gained increasing attention among institutional market participants.

The launch of Bitcoin index futures and options by LSEG, in collaboration with other partners, is an important sign of the growing influence of cryptocurrency in mainstream finance. This move is expected to further open the global financial market to digital-assets in the near future.



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