Horizon Partners with China Merchants Securities on Market-Making for Asia’s First Virtual Asset Spot ETFs

Horizon Trading Solutions (Horizon), a global leader in electronic trading solutions and algorithmic technology for capital markets, announced its collaboration with China Merchants Securities (HK), a tier-1 Chinese investment bank in Hong Kong, to provide market-making solutions for the newly launched Virtual Asset (VA) Spot ETFs listed on the Hong Kong Exchange (HKEX). 

The first batch of Asia’s VA spot ETFs, listed on HKEX since April 2024, offers investors regulated access to the two largest virtual assets—Bitcoin and Ether—under the oversight of the Securities and Futures Commission (SFC). As one of the first market makers for these ETFs, China Merchants Securities (HK) is providing liquidity for the Harvest Bitcoin Spot ETF and Harvest Ether Spot ETF, managed by Harvest Global Investments, a prominent Chinese fund manager with over USD 200 billion in assets under management.

Horizon was selected as the market-making solutions provider for China Merchants Securities (HK) due to its expertise and innovative solutions. Horizon designed a comprehensive market-making setup utilizing HKEX’s colocation services under the most premium Managed & Hosted Services model, ensuring clients benefit from 24/5 follow-the-sun support. In response to the rapidly changing virtual asset market dynamics, Horizon is committed to delivering its market-making solutions within a tight two-month timeframe.

Patrick Shum, Head of Global Markets Department, China Merchants Securities (HK), commented: “We are excited to be one of the first market makers for Asia’s VA spot ETFs. Collaborating with Horizon allows us to leverage their cutting-edge technology and responsive support, ensuring we can provide the liquidity and efficiency our investors expect in this rapidly growing asset class.”

Emmanuel Faure, Head of APAC & MENA at Horizon Trading Solutions, added: “We are thrilled to partner with China Merchants Securities (HK) in supporting the region’s first VA spot ETFs. It is important for us to be part of the development of the HKEX ETF market, demonstrating our constant product evolution to follow market trends. Our market-making solutions, combined with real-time monitoring and advanced quoting engines, provide a flexible and resilient setup for our clients in an ever-evolving market.”

Horizon’s solutions include performance and obligations monitoring, enabling market makers to track the maximum spread, minimum quote size, and participation rate in real time, ensuring compliance with exchange requirements and obligations. The system’s dynamic spread management feature also allows market makers to respond effectively to sudden volatility in the virtual asset market.