Securities Finance Industry News | LMAX Group and SIX Launch Crypto Futures

LMAX Group will partner with SIX to offer crypto-asset futures, which will be cash-settled and centrally cleared.

This launch, by the London-based foreign exchange and cryptocurrency operator and Zurich-headquartered financial infrastructure group, is scheduled for Q3 2022, subject to regulatory approval.

This will initially include centrally cleared Bitcoin and Ethereum futures contracts and will trade 23 hours, five days a week on release, expanding to 24 hours and 7 days with the full product launch.

Both companies anticipate that this crypto futures launch will generate immediate interest from LMAX Group clients as institutional investors seek to increase their digital asset allocations and demand increases for resilient trading infrastructure.

As digital assets and traditional capital markets converge, LMAX anticipates that 24/7 trading will become an important part of the transition to full open market access, supporting the functioning of more efficient capital markets.

LMAX Group CEO David Mercer said, “As institutional adoption of crypto trading continues to grow, we will complement our offering by adding crypto futures to our portfolio through this partnership. Our global institutional base , comprising 35 leading banks, will benefit from the strength of our tried and tested trading technology, combined with the secure clearing connectivity of SIX.

Javier Hernani, Head of Securities Services at SIX, said: “This is an important milestone for SIX in several respects. We are making substantial progress on our digital asset clearing strategy and expanding our portfolio of cleared asset classes. At the same time, we have the opportunity to join our Swiss and Spanish infrastructure strengths by having a diverse product team with experts from both sides.

Mercer concludes, “The crypto futures market is three times larger than spot and by providing access to deep institutional liquidity, we provide a significant market entry opportunity as crypto and blockchain evolve. . This pioneering situation will bridge the gap, enabling round-the-clock trading of crypto futures contracts seven days a week, catering to the needs of a rapidly growing number of institutional participants.

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