Hong Kong Exchanges and Clearing Launches Virtual Asset Index Series to Provide Reliable Price Benchmark for Digital Assets

Hong Kong Exchanges and Clearing Launches Virtual Asset Index Series to Provide Reliable Price Benchmark for Digital AssetsOn October 28, Hong Kong Exchanges and Clearing (HKEX) announced the launch of its HKEX Virtual Asset Index Series (Index Series) on November 15, 2024. This move aims to provide a reliable price benchmark for the rapidly growing virtual asset category, solidifying Hong Kong's position as a leading digital asset hub in Asia

Hong Kong Exchanges and Clearing Launches Virtual Asset Index Series to Provide Reliable Price Benchmark for Digital Assets

On October 28, Hong Kong Exchanges and Clearing (HKEX) announced the launch of its HKEX Virtual Asset Index Series (Index Series) on November 15, 2024. This move aims to provide a reliable price benchmark for the rapidly growing virtual asset category, solidifying Hong Kong's position as a leading digital asset hub in Asia.

The Index Series will provide transparent and reliable benchmarks for the pricing of Bitcoin and Ethereum in the Asian time zone, addressing the challenge of price discrepancies between global exchanges for virtual assets. Nicolas Aguzin, Group Chief Executive Officer of HKEX, stated that the aim is to support a healthy development of the virtual asset ecosystem by providing transparent and reliable real-time benchmarks, helping investors make informed decisions, and strengthening Hong Kong's position as an international financial center.

The Index Series will include reference indices and reference rates for Bitcoin and Ethereum. The reference indices are based on a 24-hour volume-weighted benchmark spot price for Bitcoin or Ethereum, calculated based on consolidated market prices from major virtual asset exchanges, and quoted in US dollars in real time. The reference rate is designed for the settlement of financial products and is calculated at 4:00 pm Hong Kong time daily.

In his 2024 Policy Address delivered on October 16, Hong Kong Chief Executive John Lee Ka-chiu also highlighted the Hong Kong government's continued commitment to promoting innovative financial services, including central bank digital currency, mobile payments, virtual banks, virtual insurance, and virtual asset trading. Simultaneously, the government will enhance regulation of virtual asset trading. The Hong Kong Financial Services and the Treasury Bureau will complete the second round of consultation on the regulation of off-exchange virtual asset trading and submit a proposed licensing regime for providers of virtual asset custody services.

However, HKEX stated that it will release more details about the specific design and calculation methodology of the Index Series in due course.

HKEX's launch of the virtual asset Index Series is its latest move in actively embracing the digital asset space. This initiative not only delivers a more transparent price benchmark for virtual assets but also reflects the Hong Kong government's support and emphasis on the development of digital assets. As the virtual asset sector continues to grow, the HKEX Virtual Asset Index Series is poised to become a crucial reference point for virtual asset trading in the Asian region, further driving Hong Kong's emergence as a global digital asset trading hub.