Today the London Stock Exchange Group’s (LSEG) LCH SA announced it received regulatory approval to provide clearing services for Bitcoin Index futures. It’s been almost a year since LCH revealed plans to provide central clearing for UK-regulated digital asset exchange GFO-X.
LCH launched a fully segregated division, LCH DigitalAssetClear, which includes a separate default fund and dedicated clearing rules. It plans to launch the clearing service later in 2024.
For this application the sheer number of regulators involved makes this a major undertaking. LCH is based in France, so it needed approval from the Banque de France’s ACPR and the capital markets regulator AMF. At a European level it had to get authorization from the European Securities and Markets Authority (ESMA) and the LCH’s EMIR College, which includes around 19 national regulators.
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