Regarding price determination uncertainties stemming from the fast-growing cryptocurrency network, an East Asian firm has decided to propose a viable solution. Per a recent news update, Hong Kong Exchanges and Clearance (HKEX) is en route to establishing a cryptocurrency index on November 15, 2024.
The new development will have two facets. First, it aims to provide real-time data for the trading of virtual assets. Second, the index launch would strengthen the cryptocurrency structure in the region.
Crypto Index Offerings
The proposed crypto index will leverage Bitcoin and Ethereum as the leading digital assets to determine the prices of cryptocurrencies. In addition to providing realistic price data, the project has unique features that enhance reliability and investors’ trust.
The first innovation is the Reference Rate, which centers its operation within the Asian community. It is tailored to provide region-specific information. Notably, HKEX highlighted 4 pm in Hong Kong’s native time as a standard point for market evaluation. Here, daily snapshots will emerge for assessment and referencing.
The second tool is the Reference Index, which will function continuously on a daily basis. It employs 24-hour tracking to extract authentic information from high-ranking trading platforms.
Hong Kong’s HKEX Plans to Improve Data Credibility
As part of its concentrated efforts to provide reliable crypto trends to the community, the firm considered venturing into trusted partnerships. After a series of informed research, the company settled for CCData, an index calculation company noted for high credibility levels in virtual information. With this initiative, traders should anticipate a transparent and realistic price evaluation of digital assets.
Additionally, investors’ confidence in making informed trading decisions is guaranteed. Meanwhile, with Hong Kong’s Security and Exchange Commission’s (SFC) approval, which enables licensed trading platforms to transact future contracts, HKEX’s anticipated innovation will expand exchange offerings and attract more prospective investors.
