Hong Kong Exchanges and Clearing Limited (HKEX) launched the HKEX Virtual Asset Index Series, which will go live on November 15, 2024. This series offers investors a transparent and reliable benchmark for pricing Bitcoin ($BTC) and Ether within the Asian time zone, catering to the fast-growing demand in digital asset markets.
Hong Kong Exchanges and Clearing Limited Aiming for Reliable Benchmarks
Designed to provide consistent reference pricing, the Index Series addresses the variation often seen in virtual asset prices across global exchanges. HKEX’s Chief Executive Officer, Bonnie Y Chan, emphasized that the initiative will enhance informed decision-making among investors, ultimately supporting Hong Kong’s evolution into a prominent digital assets hub in Asia.
The Index Series consists of two primary components: the Reference Index and the Reference Rate, each tailored for Bitcoin and Ether. The Reference Index, calculated in real-time, aggregates a 24-hour volume-weighted spot price from leading virtual asset exchanges.
It is denominated in US dollars, enhancing clarity for investors. Meanwhile, the Reference Rate serves as a daily pricing guide, calculated at 4:00 pm Hong Kong time, ensuring consistency for settlement processes in financial products.
HKEX’s Compliance with EU Standards
The HKEX Virtual Asset Index Series is noteworthy for being the first virtual asset index in Hong Kong that is compliant with the EU Benchmarks Regulation (BMR). CCData, a UK-based benchmark administrator specializing in virtual asset data, manages the index’s administration and calculation. This compliance enhances credibility and aligns with international standards, reinforcing Hong Kong’s regulatory commitments.
This Index Series aligns with the Hong Kong SAR Government’s efforts, highlighted in a 2022 policy statement, to foster a thriving virtual asset sector. By delivering real-time and standardized reference prices, the Index Series aims to increase market transparency, attract more investors, and strengthen Hong Kong’s status as an international financial centre.
