LMAX Group of London has launched perpetual futures tied to Bitcoin, Ether and aimed towards institutional clients.
Exchange, which has a daily average spot trading volume of over 40 billion dollars in FX and digital asset, said that the decision was driven by customer demand for leveraged access to cryptocurrency markets. according Bloomberg’s report from Wednesday is worth reading.
“Perpetual futures have dominated the crypto market for the last three or four years,” David Mercer is the CEO of LMAX. “Our institutional clients, including top proprietary trading firms and brokers, are looking for that kind of exposure,” Mercer added.
Perpetuals are a type of financial derivative It is similar to a conventional futures contract, except that it does not expire. LMAX will offer up to 100x leverage. LMAX has forex brokers located in UK, Europe and New Zealand, according to its website.
Cointelegraph reached out to LMAX Group for comment, but had not received a response by publication.
Related: High risk, high reward: Crypto perpetual futures gain momentum in US
Perps dominate crypto trading volume
The majority of Bitcoin trading is done through perpetual futures, which account for 68%.BTCThe volume of the shipments so far this year is up by 66% compared to last year. according Kaiko.
Kaiko reports that Binance and Bybit, two leading exchanges, hold almost 70% of the open interest for these products. Daily perp volumes range between $10 and $30 billion with peak days exceeding $80 billion.
CoinMarketCap dataIn the last 24 hour, crypto derivatives were dominated by perpetuals with a volume of $1.39 trillion. This is far more than traditional futures contracts which only saw $670.61 Million.
Meanwhile, data DefiLlama decentralized perpetual platforms have collectively processed $20,5 billion in volume per day. The 30-day total is $683.5, which represents a weekly increase of 16.84%. The Hyperliquid platform alone processed over $65 billion of volume in a seven-day period.
Related: Crypto perp futures coming ‘very soon,’ says CFTC’s Mersinger
The US is now home to perps
LMAX Group enters the crypto derivatives markets at the same time as US venues move to offer retail access to perpetual futures. Coinbase began CBOE offers perps in July to US consumers plans The version will be launched in November.
Europe’s One Trading Platform will be launching in April. launched Perpetuals compliant with MiFID II. The offering is restricted to institutional clients. Platform plans to extend the product to retail customers.
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Source: cointelegraph.com
