HONG KONG, Feb. 11, 2026 — The Securities and Futures Commission (SFC) published a high-level framework setting out regulatory expectations for licensed virtual asset trading platforms (VATPs) that wish to offer virtual asset perpetual contracts, according to an announcement published by the SFC.
The framework outlines product design principles, risk controls and investor protection measures that VATPs must address if they seek the SFC’s approval to introduce perpetual contracts.
Professional investor restriction
Under the framework, perpetual contracts are to be offered only to professional investors. Platforms must assess whether clients possess sufficient knowledge of derivatives before providing access to such products.
The document does not expand retail eligibility for virtual asset derivatives.
Product structure and pricing mechanisms
The framework describes perpetual contracts as leveraged instruments with no expiry date that track the price of an underlying virtual asset or index. It notes that such contracts typically rely on periodic funding payments to maintain price convergence with the underlying reference.
VATPs are expected to adopt transparent methodologies for determining mark prices, funding rates and collateral valuation, including the use of reliable and independent price sources.
Margin, default and risk management
The SFC states that platforms must establish clear and enforceable rules governing trading, margin requirements, liquidation processes and default management. Required margin must be collected before accepting client orders.
The framework also calls for clearly defined loss allocation mechanisms and robust systems to monitor abnormal market conditions, pricing anomalies and potential manipulation.
Approval requirements before launch
The SFC said licensed VATPs must submit their proposed perpetual contract structures for regulatory review before offering them to clients. Publication of the framework does not automatically permit platforms to list perpetual contracts.
The document is principles-based guidance and sets out the regulator’s expectations for product design and risk controls within Hong Kong’s existing legal and supervisory framework.
Broader regulatory roadmap
The framework forms part of the SFC’s broader virtual asset regulatory agenda, which has outlined a phased approach to expanding regulated products and market infrastructure for licensed platforms in Hong Kong. The regulator has previously signaled that product development would be accompanied by strengthened supervisory standards and investor protection safeguards within the existing legal framework.
