Exclusive: UK's First Regulated Crypto Derivatives Platform GFO-X Set For 2024 Launch

The UK's first regulated and centrally cleared trading venue dedicated to digital asset derivatives, GFO-X, is set to launch by the end of this year, Finance Magnates has learned. The project is collaborating with LCH, which will provide clearing for Bitcoin (BTC) index futures.

GFO-X to Debut Later This Year

According to information obtained by Finance Magnates, the FCA-licensed Global Futures and Options Ltd plans to officially launch GFO-X services before the end of 2024.

The GFO-X website has been operational for some time, currently offering only basic information about the project and the future offerings of the soon-to-launch trading venue.

“Built on a robust and secure FCA-regulated platform, our products enable users to gain market exposure in digital assets in a secure environment with certainty, reliability, and finality,” GFO-X writes about its services. “All GFO-X contracts are centrally cleared via LCH DigitalAssetClear to enhance transaction security and minimize counterparty risk.”

The project has two co-founders: Arnab Sen, who serves as the CEO of the London-based company, and Rajesh Melwani, who holds the position of Chief Operating and Financial Officer.

Sen has been associated with Hong Kong-based Harbour Capital Management Limited for the past 15 years, where he collaborated with Melwani, among others. Melwani, in addition to his eight years at Harbour Capital, gained experience at some of the world's largest investment banks. These include Bank of America, UBS, and Barclays, where he held roles as Manager and Managing Director.

“Evolving regulation will bring digital assets into mainstream finance. This transition demands traditional market structures to solve the multiple risks currently associated with the digital asset market,” Sen commented at the end of 2023.

LCH Is Ready to Clear BTC Derivatives

When GFO-X launches before the end of this year, it will become the UK's first FCA-regulated and centrally cleared trading venue for crypto derivatives.

One of the main partners will be LCH, which is introducing a new segregated central counterparty clearing service called LCH DigitalAssetClear for this purpose. The entity reported in April that it had already obtained the necessary regulatory approval to clear BTC index derivatives.

“LCH SA is excited to be working with GFO-X, together with the industry, to provide a regulated marketplace for this asset class as we look to expand our services as a truly international clearing house,” Corentine Poilvet-Clédière, CEO at LCH SA, commented in April.

By the end of last year, GFO-X had already secured £24 million ($31.5 million) to finance its operations in a Series B round. The backing came from $435 billion asset management firm M&G Investments.