Hong Kong to Introduce Perpetual Contracts for Institutional Investors
- The Hong Kong Securities and Futures Commission (SFC) plans to unveil a framework for trading platforms to offer perpetual contracts.
- Brokers will be able to provide financing backed by bitcoin priced at $67,543.66 and ether at $1,977.59.
- The new products will initially be available only to institutional investors, focusing on risk management.
- Platforms must establish independent market-making units and adhere to strict conflict-of-interest rules.
- The SFC’s initiatives are part of its broader roadmap aimed at developing the local crypto market by 2025.
These regulatory changes indicate a significant shift in Hong Kong’s approach to cryptocurrency, allowing more sophisticated financial products while ensuring investor protections through risk management frameworks.
With the introduction of perpetual contracts and financing options backed by bitcoin and ether, Hong Kong aims to enhance its position in the global crypto market.(Source)
