LMAX Group, one of Europe’s leading Financial Market infrastructure providers, has teamed with SIX, one of Europe’s leading operators of cash-settled, centrally cleared crypto-asset futures.
What will it include?
LMAX’s cash-settled crypto-asset futures product, which will comprise USD-settled BTC and ETH futures, is expected to launch in the third quarter of 2022, assuming regulatory permission. While it will be available for trading 23 hours a day, five days a week at first, the business aims to expand it to a 24/7 launch at a later date.
David Mercer, CEO of LMAX Group, said, “As institutional use of crypto trading continues to grow, we will complete our offering by adding crypto futures to our portfolio through this relationship. Our worldwide institutional customer base, which currently includes 35 top-tier institutions, will benefit from the power of our tried-and-true exchange trading technology paired with SIX’s safe clearing infrastructure. “
He also added, “The crypto futures market is three times larger than spot. We are creating a huge market entrance opportunity as crypto and blockchain finance expands by giving access to deep institutional liquidity. This ground-breaking technology will bridge the gap, enabling crypto futures trading 24 hours a day, seven days a week, to suit the demands of an ever-increasing number of institutional participants.”
What was the need?
The debut comes on the heels of numerous other significant businesses in the crypto space entering the derivatives market. Following the announcement of its acquisition of FairX earlier this week, Coinbase detailed its plan to provide a derivative product. In addition, FTX.US, a cryptocurrency exchange, is also going through with its ambition to launch a crypto futures product.
This partnership takes advantage of the expertise of two leading market players to deliver a superior crypto offering as the digital asset ecosystem continues to institutionalize and demand robust trading infrastructure grows. It is expected to receive immediate uptake from existing LMAX Group clients.
Conclusion
As digital assets and conventional capital markets become more intertwined, LMAX Group sees perpetual trading as a vital component of the shift to total open market access, enabling more efficient capital market functioning and increased levels of global commerce.
