SIX has partnered with LMAX Group, an operator of institutional exchanges for FX and cryptocurrency trading, to launch cash-settled, centrally cleared crypto-asset futures.
The launch, expected in Q3 2022 pending regulatory approval, will include centrally cleared USD settled Bitcoin and Ethereum futures, trading 23 hours, five days a week, with the full product roll out to be extended to 24/7 trading.
Javier Hernani, head of securities services at SIX, said the agreement marks a major milestone for the business 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 project team with experts from both sides. We are creating a strong SIX Clearing services powerhouse that will benefit all our customers.”
The launch is expected to receive immediate uptake from existing LMAX Group clients, including 35 top tier banks, as the digital asset ecosystem continues to institutionalise and demand for robust trading infrastructure grows. LMAX said it sees perpetual trading at the forefront of transitioning to complete, open market access, ensuring more efficient functioning of capital markets.
David Mercer, chief executive of LMAX Group, said: “As institutional adoption of crypto trading continues to increase, we will complete our offering by adding crypto futures to our portfolio through this partnership.
“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 finance evolves. This pioneering solution will close the gap, enabling round-the-clock trading of crypto futures, seven days/week, meeting the needs of a rapidly growing number of institutional participants.”
In November, SIX’s Digital Exchange issued the world’s first tokenised bond in a fully regulated environment using distributed ledger technology (DLT), which settles trades instantly, freeing up liquidity.
The bond was issued in two parts – tokenised and traditional – to help banks and investors familiarise themselves with DLT.