The Hong Kong Securities and Futures Commission allows licensed virtual asset trading platforms to share order books with overseas platforms and establish a compensation mechanism

The Hong Kong Securities and Futures Commission has issued a circular regarding the sharing of liquidity among virtual asset trading platforms, allowing licensed virtual asset trading platform operators to integrate order books with qualified overseas platform operators to share liquidity and achieve cross-platform matching and trade execution.

Platforms must adopt DVP (Delivery Versus Payment) settlement, intraday settlement, and monitor the limits on unsettled transactions, and establish a reserve fund and insurance/compensation arrangements in Hong Kong that are no less than the limit size to cover settlement asset risks. Market surveillance must be uniformly implemented and be able to provide transaction and customer data to the Securities and Futures Commission immediately. Adequate risk disclosure must be made to retail clients, and client selection must be obtained, along with a simultaneous application for written approval, including additional terms and conditions.