HKEX to Launch Digital Platform for Exchange-Traded Products by 2025

Hong Kong Exchanges and Clearing Limited (HKEX) announced plans to introduce a new digital platform in 2025 to enhance exchange-traded product (ETP) servicing. Pending regulatory approval, the platform will streamline the in-kind creation and redemption process for ETPs by utilizing distributed ledger technology (DLT) and smart contracts.

Jean-Francois Mesnard-Sense, HKEX's Head of Exchange Traded Products, explained, "Speed and efficiency are critical in an increasingly dynamic market environment... This new digital enhancement will not only streamline operations for our market participants but also drive more liquidity in the product ecosystem."

The platform reflects HKEX's ongoing strategy to elevate the competitiveness of its ETP market, where significant milestones have included the ICSD ETF settlement model, a new spread table, and the integration of ETFs into Stock Connect. As the ETP sector grows - with average daily turnover reaching HK$17.9 billion in 2024 - HKEX's digital transformation aims to simplify market operations and bolster Hong Kong's status as a global financial center.