What to know:
- GFO-X has launched the UK’s first FCA-regulated crypto derivatives trading venue.
- It successfully completed its first trade on a Tuesday involving the financial institutions Virtu Financial and IMC, processed through DigitalAssetClear.
- The FCA lifted its restrictions on crypto derivatives instruments for institutional investors in March 2024.
GFO-X has now opened its regulated platform for crypto derivatives in the UK, executing its first trade on Tuesday. This trade involved the institutions Virtu Financial and IMC and was cleared by DigitalAssetClear, as reported by GFO-X.
DigitalAssetClear is a service owned by a subsidiary of the London Stock Exchange Group, LCH, that specializes in cash-settled bitcoin index futures and options contracts.
GFO-X is backed by significant banks such as ABN AMRO, Nomura, and Standard Chartered, which are providing clearing services for transactions on the venue.
Earlier in March 2024, the FCA removed its ban on crypto derivatives for institutional investors, allowing firms to apply for exchange-traded notes (ETNs) related to cryptocurrencies.
The introduction of GFO-X signifies the progress in establishing a regulated trading environment for crypto in the UK. Interest in crypto derivatives is also increasing globally, highlighted by Galaxy’s recent acquisition of a license to enhance its derivatives trading in the UK.
