HKEX’s new index series is the first in Hong Kong to align with EU financial standards.
In a groundbreaking move for digital assets in Asia, Hong Kong Exchanges and Clearing Limited (HKEX) has announced the upcoming launch of its Virtual Asset Index Series, set to go live on November 15, 2024.
According to the announcement on Monday, October 28, the series will serve as a comprehensive benchmark for Bitcoin BTC $86 538 24h volatility: 0.7% Market cap: $1.73 T Vol. 24h: $44.88 B and Ethereum ETH $2 929 24h volatility: 0.3% Market cap: $353.45 B Vol. 24h: $22.16 B , delivering unified reference prices to address price discrepancies across global exchanges.
Strengthening Hong Kong’s Role in Digital Finance
The move is part of Hong Kong’s strategic push to position itself as a leading hub for digital assets in the Asia Pacific Region (APAC) with HKEX spearheading efforts to provide investors with a robust, transparent tool for assessing market prices within the time zone.
The HKEX Virtual Asset Index Series aims to establish a real-time pricing framework that facilitates more informed decision-making among investors in the digital asset space. The index will offer a 24-hour volume-weighted price for cryptocurrencies including BTC and ETH, derived from aggregate data from several major virtual asset exchanges worldwide.
The company believes that this unified price reference, denominated in the United States dollars, will give investors a consistent benchmark tailored to the fast-evolving crypto economy.
“We are pleased to launch the HKEX Virtual Asset Index Series to meet regional demand for this rapidly emerging asset class. By providing a transparent and reliable real-time benchmark, we hope to help investors make informed investment decisions, thereby supporting the healthy development of the virtual asset ecosystem and consolidating Hong Kong’s position as an international financial center,” said Peter Chan, CEO of HKEX Group.
The new offering will also come with a daily reference exchange rate, calculated at 4:00 pm Hong Kong time to provide a standardized value for the settlement of financial products.
Adhering to Global Regulatory Standards
HKEX said it structured the Virtual Asset Index Series to comply with international regulatory standards, including the European Benchmark Regulation (BMR). To achieve this goal, the company partnered with UK-based benchmark management firm and virtual asset data provider CCData.
Together, both companies will manage and calculate the indices, ensuring the series aligns with rigorous standards of reliability and consistency.
The collaboration makes the index series the first of its kind in Hong Kong to adhere to such strict regulatory criteria. HKEX believes it is setting a precedent for transparency in Asia’s digital asset market with its upcoming offerings.
The company has been in the business of providing a wide range of financial products, from stocks and derivatives to fixed-income instruments and commodities as one of the world’s premier international exchange groups.
However, with the new offering, HKEX aims to connect the East and West markets further, expanding access to a diverse selection of financial products and services for investors across the globe.
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