Key Takeaways:
- Hong Kong Stock Exchange (HKEX) will launch a crypto asset index for Bitcoin and Ethereum on November 15.
- The new index aligns with EU Benchmark Regulation (BMR) standards, providing reliable reference prices.
- UK-based CCData will jointly manage the index, enhancing transparency for Asian crypto investors.
The Hong Kong Stock Exchange (HKEX), the sixth largest in the world, will debut the HKEX Virtual Asset Index Series on November 15, marking a significant development for Asian cryptocurrency investors.
This new virtual asset index is going to present a stable, regulated benchmark price for Bitcoin and Ethereum, meeting a growing demand for a unified reference price in the Asian time zone.
Jointly developed with British data provider CCData, this will be the first index in Hong Kong to follow the new and rigid EU Benchmark Regulation (BMR) standards, meaning it would be a tool that investors can follow as the crypto market develops in Asia.
Enhancing Transparency and Accessibility
The new index series is to provide investors with a proper and transparent real-time benchmark, according to Peter Chan, Chief Executive of HKEX Group, for the effective conduct of investment decisions.
In that sense, the HKEX Virtual Asset Index Series solves a general problem of price fragmentation not only across exchanges but also as a consistent reference point for both Bitcoin and Ethereum.
Chan said:
By providing a transparent and reliable real-time benchmark, we hope to help investors Investors can 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.
Boosting Hong Kong’s Crypto Asset Strategy
This new index series forms part of HKEX’s enlarged ambition to advance its financial technology and ensure Hong Kong’s continued strength in the digital asset space.
In so doing, HKEX complies with international norms but further extends the policy statement of Hong Kong in 2022 aimed at creating a proper virtual asset ecosystem.
By offering real-time pricing through a 24-hour volume-weighted benchmark from multiple exchanges, the series from HKEX promises to ensure increased accessibility and relevance for investors.
Also, the inclusion of the reference exchange rates updated daily at 4:00 pm Hong Kong time into the index introduces a beneficial settlement tool for financial products.
However, the move evidences Hong Kong’s intent and commitment to develop crypto and fintech markets with tools that will meet regional and global requirements in full view of compliance demands.
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