$BTC The UK has made a major step forward in the realm of digital finance with the establishment of GFO-X, the country’s first regulated and centrally cleared trading platform for cryptocurrency derivatives.

The new platform, approved by the UK’s Financial Conduct Authority (FCA), is targeted at institutional investors like hedge funds, asset managers, and proprietary trading firms. GFO-X provides a secure and transparent trading environment for crypto derivatives like Bitcoin index futures and options, financial instruments employed for risk management and investment strategy.

One of GFO-X’s greatest strengths is its relationship with LCH DigitalAssetClear, a central clearinghouse. This guarantees all trades are supported by strong margin and risk controls, greatly mitigating counterparty risk — a particular worry on crypto markets. The initial trade on the platform, between leading trading companies Virtu Financial and IMC, was successfully cleared by LCH, a good precedent to set.