Key Points
- Hong Kong Exchanges and Clearing Limited (HKEX) to launch Virtual Asset Index Series on November 15, 2024.
- The index will serve as a benchmark for Bitcoin and Ethereum, providing unified reference prices.
Hong Kong Exchanges and Clearing Limited (HKEX) has revealed plans to introduce its Virtual Asset Index Series. This revolutionary move for digital assets in Asia is slated to commence on November 15, 2024.
The new series, as per the Monday, October 28 announcement, is designed to act as a comprehensive benchmark for Bitcoin (BTC) and Ethereum (ETH). Its purpose is to provide unified reference prices, addressing price discrepancies across global exchanges.
Boosting Hong Kong’s Position in Digital Finance
HKEX’s move is part of Hong Kong’s strategic plan to establish itself as a major digital assets hub in the Asia Pacific Region (APAC). HKEX is leading the charge to offer investors a robust, transparent tool for assessing market prices within the time zone.
The HKEX Virtual Asset Index Series is designed to create a real-time pricing framework that supports informed decision-making among investors in the digital asset space. The index will provide a 24-hour volume-weighted price for cryptocurrencies, including BTC and ETH, based on aggregate data from major virtual asset exchanges worldwide.
HKEX believes this unified price reference, denominated in US dollars, will provide investors with a consistent benchmark tailored to the fast-evolving crypto economy.
“We are excited to introduce the HKEX Virtual Asset Index Series to meet regional demand for this rapidly emerging asset class. By offering a transparent and reliable real-time benchmark, we aim to assist investors in making informed investment decisions, thereby supporting the healthy development of the virtual asset ecosystem and consolidating Hong Kong’s position as an international financial center,” stated Peter Chan, CEO of HKEX Group.
The new offering will also include a daily reference exchange rate, calculated at 4:00 pm Hong Kong time, to provide a standardized value for the settlement of financial products.
Meeting Global Regulatory Standards
HKEX has structured the Virtual Asset Index Series to comply with international regulatory standards, including the European Benchmark Regulation (BMR). To achieve this, the company has partnered with UK-based benchmark management firm and virtual asset data provider CCData.
Both companies will jointly manage and calculate the indices, ensuring the series aligns with rigorous standards of reliability and consistency.
This collaboration makes the index series the first of its kind in Hong Kong to adhere to such strict regulatory criteria. HKEX is confident that it is setting a precedent for transparency in Asia’s digital asset market with its forthcoming offerings.
HKEX has been providing a wide range of financial products, from stocks and derivatives to fixed-income instruments and commodities, as one of the world’s leading international exchange groups.
However, with this new offering, HKEX aims to further bridge the gap between the East and West markets, expanding access to a diverse variety of financial products and services for investors worldwide.
