Key Points
- HKEX is launching the first EU BMR-compliant virtual asset index series in Hong Kong on November 15, 2024, featuring Bitcoin and Ether benchmarks specifically designed for the Asian time zone.
- The index series will include real-time Reference Indices and daily Reference Rates, aggregating prices from top-rated crypto exchanges to provide a single reliable price benchmark for the Asian market.
Hong Kong Exchanges and Clearing Limited (HKEX) is set to strengthen its position in the digital asset space with the launch of its Virtual Asset Index Series on November 15, 2024. The initiative marks a significant step in Hong Kong’s ambition to establish itself as Asia’s premier digital assets hub.
The new index series will deliver two key products for both Bitcoin and Ether: a real-time Reference Index providing 24-hour volume-weighted spot prices, and a daily Reference Rate calculated at 4:00 PM Hong Kong time, specifically designed for financial product settlement.
Strategic Partnership and Regulatory Compliance
In a notable move, HKEX has partnered with CCData, a UK-registered benchmark administrator, to ensure the indices meet the stringent requirements of the EU Benchmarks Regulation (BMR). This compliance makes the index series the first of its kind in Hong Kong, setting a new standard for institutional-grade crypto market infrastructure in Asia.
Supporting Hong Kong’s Digital Asset Ambitions
The launch aligns with Hong Kong’s 2022 policy statement on virtual asset development, which outlined the city’s vision to cultivate a robust digital asset ecosystem. HKEX CEO Bonnie Y Chan emphasized the strategic importance of the launch, stating, “By offering transparent and reliable real-time benchmarks, we seek to enable investors to make informed investment decisions, which will in turn support the development of the virtual asset ecosystem.”
Market Impact and Future Developments
The introduction of these indices addresses a crucial market need by providing a standardized reference price for virtual assets in the Asian time zone. This development is particularly significant given the price variations often seen across global exchanges. HKEX has indicated that additional details regarding the design and calculation methodology will be announced in the coming weeks, suggesting a comprehensive framework is being established to ensure the indices’ reliability and usefulness for market participants.
The move represents HKEX’s broader strategy to explore market adjacencies while supporting Hong Kong’s fintech development, potentially paving the way for future virtual asset-based financial products and services in the region.
