Hong Kong Exchanges and Clearing Limited (HKEX) is introducing cutting-edge equities settlement acceleration technology.
The platform, known as “Synapse,” would use smart contracts written in the DAML programming language to improve operational effectiveness and streamline post-trade flows, according to a statement made on October 4.
Synapse will be put into use on Stock Connect, a HKEX channel that allows foreign investors to route through Hong Kong and access more than 1,000 Mainland Chinese stocks. “
Average daily turnover of Northbound Stock Connect totaled RMB109.3 billion in the first half of 2023, up 5 percent from a year earlier, and a 50 per cent increase from 2020 levels,” developers wrote.
Through its Institutional Trade Processing (ITP) service, HKEX will be connected to Hong Kong’s Depository Trust & Clearing Corporation (DTCC), enabling the central matching of international transactions.
The transaction confirmation workflow is then improved by automatically generating settlement instructions and sending them back to the Synapse platform.
With the introduction of retail trading for authorized cryptocurrency exchanges in August, Hong Kong has quietly developed into a hotspot for Web3 companies.
However, the biggest Ponzi fraud in Hong Kong history also took place around this period, with the JPEX cryptocurrency exchange stealing an estimated $166 million in user cash. The inquiry is still ongoing.
