GFO-X is the UK’s first regulated and centrally cleared trading venue dedicated to digital asset derivatives.

The trading venue stated that it has been working closely with these partners to deliver the requirements necessary to grow the institutional digital asset index futures and options market. 

Read more: LCH SA to launch UK’s first centrally cleared trading venue for digital asset derivatives with GFO-X

“We are delighted to announce our strategic partners as we drive towards launch in Q1 next year. Their support is a clear and strong endorsement of our vision of the market structure required to deliver digital asset derivatives to large institutional clients,” said Arnab Sen, chief executive and co-founder at GFO-X.

“It demonstrates the need for a highly regulated venue to bring additional depth, breadth, and diversification to the current limited choices in centrally cleared digital asset index derivatives. We believe the digital asset derivatives market will grow exponentially over the coming years.”

GFO-X offers a trading platform built for institutions, providing investors with a secure and efficient trading environment to manage digital asset exposure.  

“As a market maker, our strategic connection with GFO-X underscores our commitment to the institutional digital asset futures and options market – a rapidly evolving space we believe holds significant potential for continued growth and opportunity,” said Osi Lilian, IMC Strategic Investments co-lead.

The venue added that it looks forward to announcing additional partnerships with leading financial institutions in the immediate future.

Read more: M&G Investments leads $30 million Series B funding round for GFO-X

“We are excited to partner with GFO-X, the UKs first regulated and centrally cleared trading venue dedicated to digital asset derivatives,” said Barry Polak, lead product commerce at ABN ARO Clearing.

“This strategic collaboration underscores our shared commitment to advancing the institutional digital asset futures and options market.”

The post GFO-X names ABN AMRO Clearing, IMC, Standard Chartered Bank and Virtu Financial as strategic partners ahead of launch appeared first on The TRADE.

Clearing services will be provided through LCH SA’s new dedicated service, LCH DigitalAssetClear, for these contracts traded on the UK FCA regulated digital asset derivatives trading venue, GFO-X.

LCH SA stated that the offering has been developed with GFO-X in close consultation with market participants to ensure digital asset derivatives are traded and cleared through a service this is secure, highly regulated and focused on digital asset derivatives.

LCH DigitalAssetClear is underpinned by a segregated default fund, a unique risk management model and dedicated set of clearing rules.

LCH SA added that it is currently engaged with general clearing members, with plans to launch the clearing service later this year.

“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,” said Corentine Poilvet-Clédière, chief executive at LCH SA.

“LCH SA is excited to be working with GFO-X, together with the industry, to provide a regulated marketplace for this asset class as we look to expand our services as a truly international clearing house.”

The new cash-settled Bitcoin index futures and options contracts will be cleared through LCH DigitalAssetClear and will be based on the GFO-X/Coin Metrics Single Asset Real-Time Bitcoin Index (GFOXBR).

The development will allow firms to trade futures and options on the Bitcoin reference index directly.

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.

Members and clients using LCH DigitalAssetClear will also be able to leverage LCH SA’s risk mitigation, settlement, netting and margin efficiencies with a regulated environment.

“LCH DigitalAssetClear’s regulatory approval is a significant step in delivering a dedicated trading and clearing services targeted towards institutional adoption of this growing asset class,” said Arnab Sen, chief executive at GFO-X.

“Banks and institutional have been clear as to their demands for accessing this market and our joint solution delivers on their requirements.”

The post LCH SA gains regulatory approval to clear cash-settled Bitcoin index derivatives appeared first on The TRADE.

Alongside the funding round, M&G Investment will join the board of Global Futures and Options Holdings.

The strategic investment will assist GFO-X with its forthcoming launch and support future innovation in the regulated digital asset sector.

According to GFO-X, its goal is to bring partners along the journey of innovation, step by step, as digital assets deliver more sophisticated institutional grade products. 

“The lack of regulated trading venues is materially hampering the growth of the crypto derivatives trading market,” said Jeremy Punnett, M&G portfolio manager.

“The UK has the potential to become a global hub for crypto asset technology and investment, making London an excellent destination for GFO-X’s new global trading exchange. This investment enables GFO-X to scale its operations as the business is set to benefit from investors shifting their trading from unregulated venues to regulated exchanges.”

In April, GFO-X and LSEG’s LCH SA entered a strategic partnership to introduce a new, segregated central counterparty clearing service named LCH DigitalAssetClear, subject to regulatory approval.

LCH DigitalAssetClear will focus on counterparty credit, risk management, and the settlement needs of the digital asset derivatives market as institutional products develop. 

Read more: LCH SA to launch UK’s first centrally cleared trading venue for digital asset derivatives with GFO-X

“The long-term viability of digital assets and the digitisation of real tangible assets requires careful collaboration between traditional market participants and modern innovators,” said Arnab Sen, chief executive of GFO-X.

“Having a patient long term capital partner such as M&G is crucial as we build the next generation of global financial market infrastructure for digital assets.” 

The post M&G Investments leads $30 million Series B funding round for GFO-X appeared first on The TRADE.

At launch, GFO-X will offer trading in cash-settled BTC index futures and options.

The pair  will provide clearing on cash-settled digital asset index derivatives.

According to GFO-X, the firm will be taking the first steps to extract efficiencies from new technologies within a traditional market structure, with the goal of delivering 24/7 trading to global regulated digital asset markets. 

The launch is currently scheduled for Q4 2023, subject to completion of LCH SA regulatory approvals.

“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,” said Frank Soussan, head of LCH DigitalAssetClear.

“Offering centralised clearing for these cash-settled dollar-denominated crypto derivatives contracts on GFO-X is an important development for the market.”

GFO-X and LCH SA stated that they have been working with an advisory group comprising investment banks, trading firms and liquidity providers to optimise product design and risk methodologies.

“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,” said Arnab Sen, chief executive and co-founder of GFO-X.

“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.” 

The post LCH SA to launch UK’s first centrally cleared trading venue for digital asset derivatives with GFO-X appeared first on The TRADE.