pc
nid 92084
Apr 21, 2026
pthandapani@vixio.com
Hong Kong
News - Securities and Futures Commission
financial services
132% of draft length
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1703 charsHong Kong's Securities and Futures Commission Launches Secondary Trading Framework for Tokenised Investment Products
On April 20, 2026, the Securities and Futures Commission (SFC) launched a new regulatory framework to pilot secondary trading of tokenised SFC-authorised investment products in Hong Kong. Set out in a circular, the framework aims to facilitate 24/7 secondary trading of tokenised SFC-authorised open-ended funds on SFC-licensed virtual asset trading platforms (VATPs), broadening access to regulated trading services for retail investors. The SFC may also consider over-the-counter secondary trading arrangements on a case-by-case basis.
As of March 2026, 13 tokenised products were offered to the public in Hong Kong, with assets under management of their tokenised classes reaching $10.7 billion, representing a seven-fold increase over the past year. The framework addresses liquidity and investor protection issues by incorporating measures drawn from exchange-traded fund trading and VATP infrastructure, covering fair pricing, orderly trading, liquidity provision, and disclosure requirements. The framework facilitates trading beyond regular trading hours through the potential use of regulated stablecoins and tokenised deposits, enabling round-the-clock liquidity.
Julia Leung, SFC Chief Executive Officer, stated the framework represents a major milestone in building Hong Kong's integrated digital asset ecosystem with robust investor safeguards. The initial batch of products is expected to focus on tokenised money market funds, with the SFC reviewing their operation and considering expanding the product scope in due course. Product issuers and intermediaries, including SFC-licensed VATPs, are encouraged to consult or notify the SFC beforehand on endeavours related to this framework.
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2248 charsHong Kong's Securities and Futures Commission Launches Secondary Trading Framework for Tokenised Investment Products
The Hong Kong Securities and Futures Commission (SFC) launched a new regulatory framework to pilot secondary trading of tokenised SFC-authorised investment products in Hong Kong. Set out in a circular, the framework aims to facilitate 24/7 secondary trading of tokenised SFC-authorised open-ended funds on SFC-licensed virtual asset trading platforms (VATPs),
The regulatory requirements include:
Trading channel stipulations requiring that s econdary trading may be offered to retail investors through on-platform auto-matching on SFC-licensed Virtual Asset Trading Platforms (VATPs). These platforms must follow existing VATP guidelines and only execute trades if the client has sufficient capital or product holdings to cover the transaction.
Fair pricing controls mandating that VATPs and Connecting Brokers implement a "Price Deviation Alert" to warn investors if the execution price deviates significantly from the product's indicative Net Asset Value (NAV). Investors must also be informed of their option to subscribe or redeem directly at NAV in the primary market.
Liquidity provisions requiring product providers use their best endeavours to secure at least one market maker, who must provide a minimum of three months' notice before terminating their arrangement. Providers must also establish arrangements to facilitate the transfer of tokenised products between primary and secondary markets. VATPs are responsible for conducting due diligence and monitoring market makers to ensure commitment to bid-ask spreads.
Disclosure mandates which stipulate that offering documents must clearly outline the specific risks of secondary trading, including liquidity risks, price fragmentation, and reliance on market makers. Furthermore, VATPs must provide dedicated interfaces to disseminate real-time or near real-time indicative NAV and the last official NAV per unit.
Notification and approval requirements mandating immediate notification to the SFC and investors if trading or market-making activities are suspended or disrupted. Additionally, prior consultation and approval from the SFC is required before launching new tokenised products or adding tokenisation features to existing products.
The circular takes immediate effect.