SIX and LMAX Group, the leading operator of institutional exchanges for FX and crypto currency trading, have partnered to launch cash-settled, centrally cleared crypto-asset futures (“crypto futures”).
The launch, expected in Q3 2022 pending regulatory approval, will initially 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.
Commenting on the launch, David Mercer, CEO 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. Our global institutional client base, including 35 top tier banks already trading with LMAX Group, will benefit from the strength of our proven and tested exchange trading technology, combined with the secure, clearing connectivity of SIX. 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.”
Javier Hernani, Head Securities Services, SIX commented: “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 project team with experts from both sides. We are creating a strong SIX Clearing services powerhouse that will benefit all our customers. We are excited to partner with LMAX Group and be part of this ground-breaking initiative.”
The partnership, which leverages the expertise of two leading market players, is set to deliver a superior crypto offering, and is expected to receive immediate uptake from existing LMAX Group clients as the digital asset ecosystem continues to institutionalise and demand for robust trading infrastructure grows. As digital assets and traditional capital markets increasingly converge, LMAX Group sees perpetual trading at the forefront of transitioning to complete, open market access, ensuring more efficient functioning of capital markets and increasing levels of global trade.