BSX owner launches crypto products
Miami International Holdings Inc, owner of the Bermuda Stock Exchange, and Lukka Inc have entered into a strategic alliance to jointly develop and launch a suite of proprietary crypto derivatives on MIH exchange platforms based on Lukka-supplied crypto data.
The agreement provides MIH with a multiyear global licence to use Lukka data to support its exchange-listed crypto derivative product franchise, to be offered for trading on any MIH-owned or affiliated exchange platform.
MIH and Lukka anticipate the first products to be launched will include cash-settled Bitcoin and Ether futures and options, to be listed on the Minneapolis Grain Exchange LLC via the CME Globex trading platform, subject to regulatory approval.
Subsequent products expected to be listed will include Bitcoin Volatility (BitVol) and Ether Volatility (EthVol) futures and options, subject to regulatory approval.
BitVol and EthVol futures and options will leverage the same volatility calculation methodology as the Spikes Volatility Index products, powered by MIAX partner T3 Indexes, further rounding out the suite of MIAX proprietary volatility products.
"Our strategic alliance with Lukka allows us to leverage its institutional-grade crypto data to develop proprietary products in the US and international regulatory frameworks that meet the emerging needs of the cryptoasset ecosystem," said Thomas P. Gallagher, chairman and CEO of MIH, and chairman of the BSX.
"Lukka provides us with access to unique data and indexes that will further our objectives to introduce digital assets and products through our global group of exchanges, including futures on MGEX and innovative digital assets on BSX."
Robert Materazzi, CEO of Lukka, said: "As rapidly evolving crypto markets continue to become a part of the global investment ecosystem, our partnership with MIH brings maturity to crypto innovation.
"As soon as we began collaborating with the MIH team, we immediately realised that their deep experience with regulated markets combined with Lukka's institutional quality data would benefit the entire investment community.
“This partnership is moving fast – we look forward to bringing a broad range of highly innovative investment products to market."
Joseph W. Ferraro III, president of MIAX Futures, said: "MIH is focused on bringing innovative products to the global investment community, and our best-in-class suite of crypto data and indexes are integral to our proprietary product initiatives that we plan to offer through our exchanges.
"Lukka has quickly established itself as one of the largest crypto and digital asset data reporting hubs, with institutions globally relying on Lukka's valuation and benchmarking services to accurately reflect the prices of their digital assets.
“We believe that crypto derivatives based on Lukka's data and indexes will resonate with these institutions for both hedging and speculative purposes."