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Hong Kong Considers Virtual Asset Derivatives Trading for Professional Investors

Hong Kong's Secretary for Financial Services announces plans for virtual asset derivatives trading, focusing on risk management and major cryptocurrencies like Bitcoin and Ethereum.

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Summary

On June 8, Hong Kong's Secretary for Financial Services, Christopher Hui, revealed that the Securities and Futures Commission is exploring virtual asset derivatives trading for professional investors, emphasizing strong risk management. The focus may initially be on perpetual contracts for major assets like Bitcoin and Ethereum, aligning with international trends from institutions such as SGX and Coinbase.

Terms & Concepts
  • Virtual Asset Derivatives: Financial instruments whose value is derived from the price of virtual assets like cryptocurrencies.
  • Perpetual Contracts: A type of derivative that allows traders to buy or sell an asset without an expiration date, commonly used in cryptocurrency trading.
  • Securities and Futures Commission (SFC): The regulatory body in Hong Kong responsible for overseeing the securities and futures markets.