Hong Kong Exchanges and Clearing Limited (HKEX), the operator of the Stock Exchange of Hong Kong, the Hong Kong Futures Exchange and the London Metal Exchange, is launching a novel equity settlement acceleration platform. According to reports on October 4, the platform, called “Synapse”, will use smart contracts in the DAML programming language to streamline post-trade processes and improve operational efficiency. announcement.
Synapse will be deployed on Southbound Connect, a Hong Kong exchange channel that enables international investors to purchase more than 1,000 mainland Chinese stocks via routing in Hong Kong. “In the first half of 2023, the average daily trading volume of Shanghai-Hong Kong Stock Connect totaled 109.3 billion yuan, a year-on-year increase of 5% and a 50% increase from 2020 levels,” the developers wrote.
HKEx will establish a link with the Hong Kong Depository Trust and Clearing Corporation (DTCC) through its Institutional Transaction Processing (ITP) service to achieve centralized matching of cross-border transactions. Settlement instructions are then automatically generated and routed back to the Synapse platform, enhancing the trade confirmation workflow.
With the silent approval of China’s central government, Hong Kong has been rapidly transforming into a hub for Web3 companies with the launch of retail trading on licensed cryptocurrency exchanges in August. However, the largest Ponzi scheme in Hong Kong history also occurred during this time, with an estimated $166 million worth of user funds misappropriated by the JPEX cryptocurrency exchange. The investigation is ongoing.
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