LMAX, an institutional cryptocurrency exchange, has announced a partnership to SIX, a Swiss financial services group. The goal is to launch centrally cleared, cash-settled crypto-asset futures.
David Mercer, CEO of LMAX Group, reveals that his company will add digital asset futures through its latest partnership to meet institutional demand for crypto trading.
LMAX-SIX’s new Crypto Product Offering
LMAX has stated that the launch will take place in Q3 2022, based on regulatory approval. According to the official press release the product will include centrally cleared USD settled Bitcoin futures and Ethereum futures. It will be available for trading for up to 23 hours, five days per week. The fintech company plans to eventually expand the roll-out to 24/7 trading.
“The partnership that leverages the expertise and market leaders of two top market players is set to deliver a superior cryptocurrency offering. It is expected to be immediately adopted by existing LMAX Group clients as long as the digital asset environment continues to institutionalize, and the demand for robust trading infrastructure grows.”
According to Mercer LMAX’s institutional clients, which include 35 top-tier banks trading with the company, will be able to benefit from the exchange trading technology and the “secure clearing connectivity” of SIX.
According to the exec, the partnership will allow for round-the-clock trading of crypto futures seven days a week and cater to the growing demand of institutional participants in this ecosystem.
Mercer acknowledged that the market for crypto futures is three times larger than the spot. However, Mercer said that institutional liquidity is the key to providing access to the best possible crypto futures market. This is because the market-wide push to the derivatives sector has seen a significant rise.
Javier Hernani from SIX Head Securities Services commented on the partnership.
This is a significant milestone for SIX in many ways. We are making significant progress in our digital asset clearing strategy. We are also expanding our portfolio of cleared assets classes. We are thrilled to be a part of this groundbreaking initiative and partner with LMAX Group.
Heading for Derivatives Division
This latest development comes at a time when many cryptocurrency platforms are moving towards derivatives expansion. FTX US, the United States Division of global cryptocurrency exchange FTX.com, revealed last year that it was looking to expand its product offering to include crypto derivatives.
Initial steps included the acquisition by Ledger Holdings (parent company of LedgerX), in October last year. Later, it was renamed to FTX US Derivatives.
Coinbase recently announced its plans to bring a well-regulated derivatives marketplace after it acquired FairX, a CFTC regulated derivatives exchange. Coinbase further stated that it aims to offer such services to all its customers in the US by leveraging FairXFairX’sastructure.
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