While crypto derivatives are currently traded over the counter in the UK, Bitcoin futures have been sold in international derivatives markets. This article explores the economic incentives, legal grounds and systemic concerns over clearing crypto derivatives in the UK under the European Market Infrastructure Regulation (EMIR) as retained EU law. It concludes that clearing crypto derivatives is unwise, as systemic risk involved outweighs potential economic gains. Practitioners should experiment in de-centralised clearing to meet the market's desire for reliable crypto derivatives products.
|Journal||Journal of International Banking & Financial Law|
|Publication status||Published - 1 Feb 2023|
Bibliographical noteCopyright © Reed Elsevier (UK) Ltd 2023
- crypto derivatives
- central clearing
- de-centralised clearing