Synapse: HKEX’s Platform for Streamlining Post-Trade Processes
Hong Kong Exchanges and Clearing Limited (HKEX) has introduced a new platform called Synapse, aimed at improving operational efficiencies in equities settlement. Synapse will utilize smart contracts written in the DAML programming language to streamline post-trade processes. The platform is set to be integrated into Stock Connect, which provides international investors with access to over 1,000 Mainland Chinese stocks through Hong Kong. In addition, HKEX has partnered with Hong Kong’s Depository Trust & Clearing Corporation (DTCC) to enable central matching of cross-border transactions through the Institutional Trade Processing (ITP) service.
Web3 Domain Safety Questioned after JPEX Scandal
Hong Kong has been making strides in the Web3 domain, including the approval of retail trading on licensed crypto exchanges. However, the city also recently experienced its largest Ponzi scheme involving the JPEX crypto exchange. Reports suggest that $166 million of user funds were embezzled, leading to ongoing investigations. These events raise concerns about the safety and security of digital assets and highlight the need for increased regulation and oversight in the crypto industry.
Hot Take: HKEX’s Synapse Platform and Hong Kong’s Crypto Landscape
Hong Kong Exchanges and Clearing Limited’s Synapse platform aims to enhance operational efficiencies in equities settlement by utilizing smart contracts. This development comes as Stock Connect continues to gain traction among international investors seeking access to Chinese stocks. However, recent events, such as the JPEX scandal, have raised questions about the safety and security of digital assets in Hong Kong’s crypto landscape. While there are positive developments in the city’s digital transformation, regulatory measures are necessary to protect investors and ensure the integrity of the market.
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