Add as a preferred source on GoogleGCEX Opens OTC Bitcoin (BTC) and Ether (ETH) Options to Firms
The contracts expire monthly and settle in fiat. The U.K. restriction applies to firms distributing specified crypto derivatives to retail customers.
GCEX launched over-the-counter options on Bitcoin (BTC) and Ether (ETH) for eligible professional and institutional clients on Thursday, Oct. 22, expanding access to crypto derivatives through its U.K. entity.
The European-style contracts include calls and puts, expire monthly and settle in fiat currency. Clients request quotes from GCEX’s trading desk, which sources prices from liquidity providers. Positions, expiries, valuations and settlements are reported in XplorPortal.
GCEX says it hedges each trade through liquidity providers. Buyers can lose the premium they pay, while sellers can lose more than the premium they receive. “Our institutional clients have been asking for a regulated way to hedge,” GCEX founder and CEO Lars Holst said.
The U.K.’s Financial Conduct Authority (FCA) restricts firms acting in or from the country from selling, marketing or distributing certain derivatives to retail consumers when they reference unregulated cryptoassets, including Bitcoin and Ether. The restriction covers options and futures and took effect Jan. 6, 2021.
John Kim
John Kim reports on the digital-asset business for TokenPost. Send corrections or tips to info@tokenpost.com.