This index series will be the first virtual asset index series developed in Hong Kong that complies with the European Benchmark Regulation (BMR), providing a transparent and reliable benchmark for the pricing of Bitcoin and Ethereum in the Asian time zone.

The Hong Kong Stock Exchange (HKEX) is once again making strides to become the digital currency center of Asia. On Monday, October 28, the HKEX announced that it will launch the Hong Kong Stock Exchange Virtual Asset Index Series (the Index Series) on November 15, 2024. This series aims to provide a reliable benchmark price for the rapidly emerging asset class of virtual assets and supports Hong Kong's development as a leading digital asset center in Asia.

The Index Series will offer a transparent and reliable benchmark for the pricing of Bitcoin and Ethereum in the Asian time zone, aiming to provide a unified reference price for virtual assets and address the price discrepancies of these assets across global exchanges.

The launch of the Index Series is part of the HKEX's efforts in the virtual asset space. Earlier, the Executive Director of the Intermediary Division of the Hong Kong Securities and Futures Commission, Yip Chi-hang, stated that licenses for virtual asset trading platforms would be issued by the end of the year, a consultation group for virtual asset trading platforms would be launched in early next year, and continued support for tokenization and Ensemble projects would be provided.

The First Virtual Asset Index Series Compliant with BMR

Specifically, the Index Series will include reference indices and reference rates for Bitcoin and Ethereum. The reference index is based on the benchmark spot price weighted by the 24-hour trading volume of Bitcoin or Ethereum, calculated based on the aggregated market prices from multiple major virtual asset exchanges, and is priced in USD in real-time. The reference rate is designed for the settlement of financial products and is calculated every day at 4:00 PM Hong Kong time.

This Index Series will be the first virtual asset index series developed in Hong Kong that complies with the European Benchmark Regulation (BMR), jointly managed and calculated by a UK-registered benchmark management organization and the virtual asset data and index provider, CCData.

It is understood that this Index Series will be the first of its kind in Hong Kong to comply with the European Benchmark Regulation (BMR), providing a transparent and reliable benchmark for the pricing of Bitcoin and Ethereum in the Asian time zone, and striving to offer a unified reference price for virtual assets to address price discrepancies across global exchanges. By providing real-time data and daily reference prices in the Asian time zone, the series aims to help the public better understand the investment trends in virtual assets.

The Index Series will include reference indices and reference rates for Bitcoin and Ethereum. The reference index is based on the benchmark spot price weighted by the 24-hour trading volume of Bitcoin or Ethereum, calculated based on the aggregated market prices from multiple major virtual asset exchanges, and is instantaneously priced in USD. The reference rate is designed for financial product settlement and is calculated at 4:00 PM Beijing time daily.

HKEX Group CEO Charles Li expressed his pleasure in launching the Index Series to meet the 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."

It is reported that Hong Kong has been committed to becoming Asia's cryptocurrency trading center. In 2022, Hong Kong released a policy statement on the development of virtual assets, hoping to cultivate a vibrant virtual asset industry and ecosystem in Hong Kong.

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