GFO-X, the U.K.'s first Financial Conduct Authority (FCA)-regulated crypto derivatives platform, launched on Tuesday. The platform's debut follows the FCA's March 2024 decision to lift the 2020 ban on crypto derivatives for institutional investors. This marks a significant step in the development of the regulated crypto trading ecosystem in the U.K.
The new platform facilitated its first trade on Tuesday between Virtu Financial and IMC, cleared by DigitalAssetClear. DigitalAssetClear, a service by LSEG subsidiary LCH, handles cash-settled bitcoin index futures and options contracts. Major banks including ABN AMRO, Nomura, and Standard Chartered support GFO-X by providing clearing services.
The London Stock Exchange will now accept applications for cryptocurrency exchange-traded notes (ETNs). Crypto derivative trading is gaining global momentum, with Galaxy securing U.K. approval last month and Coinbase acquiring Deribit earlier this month for $2.9 billion.
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