HKEX Launches Virtual Asset Index Series, Strengthening Hong Kong's Digital Assets Hub

Hong Kong Exchanges and Clearing Limited (HKEX) is launching the HKEX Virtual Asset Index Series, the exchange operator announced in a statement on Tuesday.

This move is seen as a significant step in supporting Hong Kong's fintech development and solidifying the city's position as a leading digital assets hub in Asia.

The Index Series, which will go live on November 15, 2024, will provide investors with transparent and reliable benchmarks for Bitcoin and Ether pricing in the Asian time zone. By aggregating prices from top-rated virtual asset exchanges, the Index Series aims to offer a single reference price for these assets, addressing the challenge of price discrepancies across different global exchanges, HKEX said.

"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," HKEX CEO Bonnie Y Chan said, noting the region's growing demand for this fast-emerging asset class.

The Index Series comprises a Reference Index and a Reference Rate for both Bitcoin and Ether. The Reference Index, calculated in real-time, offers a 24-hour volume-weighted reference spot price denominated in US dollars. The Reference Rate, on the other hand, is designed for financial product settlement and is calculated daily at 4:00 PM Hong Kong time.

As the first EU Benchmarks Regulation (BMR)-compliant virtual asset index series developed in Hong Kong, the Index Series will be administered and calculated by CCData.

Further details regarding the design and calculation methodology of the Index Series will be unveiled in the future.

Yesterday, the Securities and Futures Commission (SFC), Hong Kong's securities regulator, said it is taking steps to foster a robust fintech ecosystem, including streamlining the licensing process for virtual asset trading platforms and the formation of a consultative panel in 2025 to shape future regulation.

In a keynote speech at the Hong Kong Fintech Week 2024, Eric Yip, SFC executive director of intermediaries, highlighted progress in licensing Virtual Asset Trading Platforms (VATPs), and said several licenses are expected by year-end.

“The SFC will continue to adopt a pragmatic and proactive approach in building and advancing a holistic regulatory framework, to strike a balance between market development and investor protection,” Yip said.