October 31, 2024
By Our Correspondent
Hong Kong Exchanges and Clearing (HKEX), which operates Asia’s third-largest stock exchange, is set to introduce a series of virtual asset indices designed to provide a dependable price benchmark for cryptocurrencies, thereby bolstering the city’s ambition to establish itself as a premier hub for digital assets. According to a statement released by HKEX on Monday, the Virtual Asset Index Series will deliver benchmarks for the pricing of bitcoin and ether in Asian time zones.
Scheduled for launch on November 15, these indices aim to resolve the inconsistencies in virtual asset pricing by offering investors a singular and trustworthy price reference, as discrepancies often arise across various global exchanges, the statement noted. Bonnie Chan Yiting, CEO of HKEX, emphasized that the index series will cater to the increasing demand for emerging digital assets in the region. “By providing transparent and reliable real-time benchmarks, we aim to empower investors to make well-informed investment choices, which will subsequently foster the growth of the virtual asset ecosystem and strengthen Hong Kong’s position as an international financial center,” she stated.
The index series will include a reference index and a reference rate for bitcoin and ether. The reference index will present a 24-hour volume-weighted spot price, aggregating data from leading exchanges to provide real-time pricing in US dollars. The reference rate will facilitate the daily settlement of financial products, calculated at 4 PM Hong Kong time. This initiative represents Hong Kong’s inaugural virtual asset index compliant with the EU Benchmarks Regulation, with UK-based data and index provider CCData appointed as the official administrator, as per HKEX.
This development is in line with Hong Kong’s strategy to cultivate a robust virtual asset ecosystem.
