Hong Kong Exchanges and Clearing Limited Unveils Synapse Platform for Equities Settlement
Hong Kong Exchanges and Clearing Limited (HKEX), the operator of various financial markets, has launched a new equities settlement platform called Synapse. This platform utilizes smart contracts programmed in DAML to enhance post-trade processes and improve operational efficiencies. Synapse will be integrated into Stock Connect, an HKEX channel that allows international investors to access over 1,000 mainland Chinese stocks through Hong Kong.
Glenda So, HKEX Group Head of Emerging Business and FIC, stated that Synapse will not only improve post-trade efficiencies but also contribute to building a stronger ecosystem that supports market and investor growth strategies. The average daily turnover of Northbound Stock Connect reached RMB 109.3 billion in the first half of 2023, indicating a 5% increase from the previous year and a significant 50% surge from 2020 levels.
HKEX to Connect Synapse with DTCC
HKEX plans to establish a connection between Hong Kong’s Depository Trust and Clearing Corporation (DTCC) via its Institutional Trade Processing service. This integration will facilitate centralized matching of cross-border transactions and automate the generation and transmission of settlement instructions back to the Synapse platform, streamlining the trade confirmation workflow.
Synapse Platform Launch Date
The Synapse platform is scheduled for launch in Hong Kong on October 9. This development comes as Hong Kong positions itself as a hub for Web3 companies, although recent challenges such as the JPEX Ponzi scheme have raised concerns about the negative impact on the digital asset industry. The investigation into the JPEX case is ongoing, and experts fear it may hinder the government’s efforts to expand the sector.
Hot Take: HKEX Introduces Synapse Platform to Enhance Equities Settlement
Hong Kong Exchanges and Clearing Limited (HKEX) has unveiled its new equities settlement platform, Synapse. This technology-driven platform, powered by smart contracts, aims to improve post-trade efficiencies and support market and investor growth strategies. By integrating with Stock Connect, international investors gain access to mainland Chinese stocks through Hong Kong.
The launch of Synapse comes at a time when Hong Kong is positioning itself as a hub for Web3 companies. However, recent challenges, such as the JPEX Ponzi scheme, have created negative impressions of the digital asset industry in the region. The success of Synapse and the overall expansion of the sector will be closely watched as the investigation into the JPEX case unfolds.
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