HKEX’s new index series will provide a single reference price for Bitcoin and Ether, aligning with Asia-Pacific trading hours, and intends to increase transparency in the digital asset market.
Hong Kong Exchanges and Clearing (HKEX), a global exchange group listed on public markets, recently announced the launch of a digital asset index series aimed at providing real-time data on digital assets across the Asia-Pacific region.
The HKEX Virtual Asset Index Series will be available starting November 15, giving investors key benchmarks for Bitcoin and Ether pricing within the Asian time zone.
This launch aligns with the Hong Kong Securities and Futures Commission’s (SFC) plans to issue additional digital asset exchange licenses by year-end.
According to Bloomberg, Eric Yip, executive director at the SFC, noted that firms had responded well to feedback and the SFC’s drive for expanded licensing.
New Index Series
The HKEX Virtual Asset Index Series is intended to deliver a unified price reference for BTC and ETH through a volume-weighted average drawn from several top-tier exchanges.
An official press release states that the index complies with the European Union Benchmarks Regulation (BMR), marking it as the first such index in Hong Kong.
Bonnie Y Chan, CEO of HKEX, emphasized that the series will help “enable investors to make informed investment decisions [to] support the development of the virtual asset ecosystem.”
She added, “We are delighted to introduce the HKEX Virtual Asset Index Series to meet the region’s growing demand for this fast-emerging asset class.”
SFC Licensing Efforts
Alongside HKEX’s index launch, the SFC is moving forward with full licenses for several crypto exchanges that previously held provisional permits.
Following a five-month review, the regulator flagged some firms for unsatisfactory practices but noted that most had implemented corrective measures.
The SFC plans to create a consultative panel with licensed exchanges by early 2025 to enhance cooperation and regulatory compliance.
Additionally, the regulatory expansion includes over-the-counter trading desks and custodians, strengthening oversight within Hong Kong’s digital asset markets.
Hong Kong’s Push for AI in Finance
On October 28, Hong Kong’s Financial Services and Treasury Bureau (FSTB) released policies promoting safe AI use in the finance sector.
In its ‘Policy Statement on Responsible Application of artificial intelligence in the Financial Market,’ the FSTB emphasized that AI “could be deployed to various aspects from risk management to customer services,” opening doors to new services and products.
The report highlighted that “the public release of generative AI products and services in 2022 has presented ample opportunities to the industry.”
To support AI innovation while managing risks, the FSTB proposed a “dual-track approach” for fostering AI’s growth in finance.
