Hong Kong Exchanges and Clearing Limited (HKEX) has announced the launch of its HKEX Virtual Asset Index Series, a move that reinforces Hong Kong’s ambitions to be a digital asset leader in Asia. Slated to go live on November 15, 2024, this Index Series aims to provide investors with real-time data and daily reference prices for virtual assets, specifically focusing on Bitcoin and Ether. By providing these benchmarks in the Asian time zone, the Index Series is designed to enhance transparency, understanding, and investor confidence within the digital asset investment landscape.
Transparent and Reliable Benchmarking for Bitcoin and Ether
The HKEX Virtual Asset Index Series will offer a Reference Index and Reference Rate for both Bitcoin and Ether. The Reference Index, calculated in real-time, delivers a 24-hour volume-weighted reference spot price in US dollars. Meanwhile, the Reference Rate will be calculated daily at 4:00 PM Hong Kong time, specifically designed for financial product settlement. Both benchmarks aim to resolve the issue of price discrepancies across global virtual asset exchanges by providing a single, consolidated reference price sourced from top-rated exchanges.
In her statement, HKEX CEO Bonnie Y Chan highlighted the significance of this initiative: “By providing transparent and reliable real-time benchmarks, we empower investors to make informed decisions, fostering the growth of the virtual asset ecosystem and reinforcing Hong Kong’s status as a global financial center.”
Asia’s First EU Benchmarks Regulation (BMR)-Compliant Virtual Asset Index Series
The HKEX Virtual Asset Index Series is also noteworthy for being the first EU Benchmarks Regulation (BMR)-compliant virtual asset index series developed in Hong Kong, a move that demonstrates HKEX’s commitment to high regulatory standards. The series will be administered and calculated by CCData, ensuring the accuracy and reliability of index measurements and maintaining consistency with international standards. HKEX noted that additional information on the design and calculation methodologies will be released in the coming months.
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Strategic Expansion of Hong Kong’s Fintech Landscape
This launch is part of Hong Kong’s broader strategy to strengthen its standing as a leading digital finance hub, alongside efforts in artificial intelligence and other fintech advancements. As the city gears up for these developments, the Securities and Futures Commission (SFC) has recently emphasized its commitment to cultivating a robust and well-regulated fintech ecosystem. In a keynote address at Hong Kong Fintech Week 2024, SFC Executive Director of Intermediaries, Eric Yip, discussed the agency’s plans to streamline the licensing process for Virtual Asset Trading Platforms (VATPs) and create a consultative panel in 2025 to address future regulatory needs.
Yip highlighted the SFC’s commitment to “adopting a pragmatic and proactive approach in building a holistic regulatory framework, balancing market innovation with investor protection.” This approach is expected to facilitate multiple VATP licenses by the end of the year, furthering Hong Kong’s role as a center for virtual asset innovation and regulation.
As Hong Kong continues to focus on advancing in both AI and digital assets, these developments position the city to maintain its competitive edge as a key financial hub in the digital age.
Speaking at Hong Kong Fintech Week 2024, Eric Yip, the SFC’s Executive Director of Intermediaries, emphasized the organization’s commitment to building a balanced regulatory framework that encourages market development while ensuring investor protection. Yip also noted that several VATP licenses are expected to be issued by the end of the year, marking tangible progress in Hong Kong’s approach to virtual asset regulation.
