LMAX Group will link up with SIX to offer crypto-asset futures, which will be cash settled and centrally cleared.
This launch, from the London-based FX and crypto currency exchange operator and the Zurich-headquartered financial infrastructure group, is scheduled for Q3 2022, subject to regulatory approval.
This will initially include centrally-cleared Bitcoin and Ethereum futures and will trade 23 hours, five days per week on release, extending to 24 hours and 7 days with the full product launch.
The two companies predict that this crypto futures launch will attract immediate interest from LMAX Group customers as institutional investors look to raise their digital asset allocations and as demand rises for a resilient trading infrastructure.
As digital assets and traditional capital markets converge, LMAX predicts that 24/7 trading will become an important element in transitioning to complete open market access, supporting the operation of more efficient capital markets.
LMAX Group CEO David Mercer says: “As institutional adoption of crypto trading continues to increase, we will complete our offering by adding crypto futures to our portfolio through this partnership. Our global institutional base, including 35 top tier banks, will benefit from the strength of our proven and testing exchange trading technology, combined with the secure clearing connectivity of SIX.”
SIX’s head of securities services Javier Hernani says: “This is a major milestone for SIX from several perspectives. We are making substantial progress according to our digital asset clearing strategy and are expanding our portfolio of cleared asset classes. At the same time, we have the opportunity to bring our Swiss and Spanish infrastructure strengths together by having a diverse product team with experts from both sides.”
Mercer concludes: “The market in crypto futures is three times bigger than spot and by offering access to deep institutional liquidity, we are providing a significant market entry opportunity as crypto and blockchain evolves. This pioneering situation will close the gap, enabling round the clock trading of crypto futures seven days per week, meeting the needs of a rapidly growing number of institutional participants.”
